The cyber security market in China had revenues of US$4.9 billion in 2012 and could double over the next five years, according to ABI Research.
The analyst firm noted that conditions in China are favourable for a dynamic IT security market. For instance, the state government has invested heavily in technologies, people and processes, and actively supports the domestic private sector in cyber security solutions.
While this means that there is a significant entry barrier for foreign firms, market penetration is not impossible. The Chinese market is still nascent and domestic firms lag behind in technology development and innovative value, said ABI Research analysts.
"As the market for Internet and mobile security products matures, especially on the consumer end, the demand for quality solutions and the focus on the end-user experience will become more important," said Michela Menting, senior analyst, ABI Research.
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