The domestic information security industry's sales are showing continued growth, achieving a growth rate in the 10% range amid the COVID-19 pandemic.

The Ministry of Science and ICT (Minister Lee Jong-ho) and the Korea Information Security Industry Association (Chairman Lee Dong-beom) announced the results of the '2022 Domestic Information Security Industry Survey' on the 14th.

The information security industry grew by 13.4% in 2021, achieving an average annual growth rate of 11.3% over the past three years, even amid adverse conditions such as the COVID-19 pandemic.

The number of information security companies increased by approximately 18.2% year-on-year, and the industrial market size showed a solid upward trend, with the information security sector growing by 16.0% and the physical security sector growing by 12.1%.

These results suggest that the growth of the information security industry has been driven by increased demand for non-face-to-face security infrastructure, including network security, content/data security, CCTV components, and biometric security systems, following the COVID-19 pandemic.

Additionally, the number of information security personnel increased by 16.2% year-on-year, which is interpreted as a significant increase in the demand for personnel in information security companies due to market activation resulting from increased security demands from general companies.

The number of domestic information protection companies increased by about 18.2% from 1,283 in the previous year to 1,517, and among them, 669 (26.0) were information security companies.% ↑), the number of physical security companies was surveyed at 848 (12.8% ↑).

As the digital transformation shifts social awareness of information security and emphasizes the importance of corporate security capabilities, the number of domestic information security companies is growing at an average annual rate of 14.0% (2017-2021).

The domestic information security industry's total sales reached approximately KRW 13.8 trillion, a 13.4% increase year-on-year. With the demand for security in non-face-to-face and non-contact areas increasing significantly following the COVID-19 pandemic, the industry has maintained a high growth rate of around 10% since 2019.

Sales in the information security sector were found to have grown 16.0% year-on-year to approximately KRW 4.5 trillion.

In particular, with the increasing demand for companies to transition to cloud environments for remote work, network security (20.7%) and content/data security (13.5%, DLP, DRM, etc.) are taking up a major share of the domestic information security market.

In addition, the increasing number of domestic and international ransomware and malware attacks on manufacturing industries, including smart factories, is driving demand for OT (Operation Technology) security and ICS (Industrial Control System) security.

Kim Jeong-sam, Director General of Information Security Network Policy at the Ministry of Science and ICT, said, “Despite difficult domestic and international environments such as the COVID-19 pandemic, global economic downturn, and the US-China trade dispute, the information security industry was able to maintain stable growth thanks to the efforts of domestic companies and cooperation between related organizations.” He added, “We will continue to pursue more proactive policies and institutional support so that the information security industry can strengthen the safety of the people and enhance Korea’s digital competitiveness through digital convergence and innovation.”
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▲Information security industry mid-category unit sales