The Top 15 Cyber Spending Countries

Do you know which are the top 15 Cyber Spending Countries of the world?

We did not know the answer to the question prior to completing our most recent research.

But now we know.

And we have to say we are a bit surprised at some of the answers.

We are especially in awe of the differences in spend on cyber by Country.

But it is not just spend by country that is instructive to look at, it is also spend by region of the world that is illuminating.

Some of our findings from our most recent cyber spend research include the following:

The Top 15 Cyber Spending Countries

The 15 largest cyber spenders by country include:

  • Australia
  • Brazil
  • Canada
  • China
  • France
  • Germany
  • India
  • Italy
  • Japan
  • Mexico
  • The Netherlands
  • Russian Federation
  • South Korea
  • United Kingdom
  • United States

These fifteen countries - slightly less than eight percent of the countries of the world - account for 80 percent of all spending on cyber.

Shocking - it's not the expected notional 20/80 rule but rather an 8/80 rule-of-thumb that defines cyber-spending.

What's not obvious from the bulleted list of Countries are the differences in spending that exist among the top 15 cyber spending countries.

For example, the country spending the least among these 15 actually spends less than five percent of the country spending the most.

Moreover, the top five account for more than half of all cyber-spend.

Cyber Spend by Region

What is perhaps the more surprising is spending on cyber by regions of the world.

Almost all spending on cyber - more than 95 percent of it - occurs in Countries located in three broad regions of the world.

The three high cyber spend regions include:

  • Asia Pacific and Oceania (APACO)
  • Europe, the Middle East and Africa (EMEA)
  • North America (NA)

In contrast, the lowest spending region of the world is Latin America (LA), with total cyber spending that is less than five percent of all worldwide spending.

Implications for Sellers of Cyber Products and Services
  • Providers go where the money is. This means providers target specific regions and countries of the world where spending on cyber is higher than other geographies. But this follow-the-money behavior also means more competition, lower margins, and slower growth. Overcrowding tends to occur more often among mature and more commodity cyber offering segments, while newer offering segments tend to take longer for market acceptance even among big-spenders. The challenge and opportunity for buyers and providers alike is finding lower-friction cyber marketplaces.
Implications for Buyers of Cyber Products and Services
  • Buyers generally follow crowds like Penguins waddling to the sea. This results in winner-take-all environments which tends to work against buyers as a few prime cyber provider(s) are stretched thin trying to be all things to all customers. Eventually such rubber bands become inelastic or break and then bounce back: neither of which are fun to resolve or clean up after. The challenge and opportunity for buyers and providers alike is finding lower-friction cyber marketplaces.
Implications for Cyber Operations
  • Underfunded cyber weak spots of world are silent killers. These locations are where spend on cyber is abnormally low and vulnerabilities are abnormally high. These are geographies from which pass-through bot-traffic is more likely to pose problems, whether such traffic comes from the value or supply chain. The challenge for those in and outside these regions and countries demands lower-friction cyber marketplaces.
Insights
  • Become aware of the current breakouts for cyber spend across the world and what these mean for you and your organization.
  • Pay attention to forecasts for cyber spend by segment and geographic region to accommodate agile and risk balanced business results.
  • Convert as much as possible to Security as a service to accommodate suppleness and agility.
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