The Zhitong Finance App learned that IDC data shows that in 2023, the market size of anti-DDoS hardware security products in China was about 670 million yuan, with a year-on-year increase of 4.3%. Affected by various factors, the overall growth rate slowed down. Among them, Huawei, Green League Technology (300369.SZ), Dipu Technology (300768.SZ), China News Network Security, and Xinhua have dominated the fierce market competition.
According to IDC data, in 2023, China's public cloud anti-DDoS market was about RMB 2.2 billion, an increase of 15.8% over the same period last year. In addition to domestic business, various technical service providers have actively gone overseas and achieved impressive market results overseas. Among them, China Telecom (00728), Alibaba Cloud, Tencent Cloud, HUAWEI CLOUD, and Netsu Security occupy a dominant position in the fierce market competition.
As a mature market for anti-DDoS products and services, market concentration continues to increase, and competition is further strengthened. In this context, IDC provides the following suggestions to help technology service providers better cope with market changes and win the market:
Deeply cultivate users and iterate products: Technical service providers need to continuously improve the performance (throughput, latency, safety and reliability, etc.) and functionality (3-7 layers of attack defense) on top of user needs. It is particularly important to note that in the future, “integrated security” will become an essential capability for manufacturers, which can help users effectively build in-depth defense systems. The content includes core content such as extensive application edge protection (integrated 7-layer anti-D, WAF, API security, bot protection, etc.) and integrated network security defense (integrated firewall, intrusion detection and prevention, zero trust network access, secure access to service edge, threat intelligence, etc.).
“AI+DDoS” empowers users to build automated and intelligent security defense systems: “AI+DDoS” related products and services use AI-related technology to analyze and learn traffic characteristics and attack behavior to form defense algorithms, strategies, and models that match user needs, which will improve the efficiency and effectiveness of end-user DDoS prevention. In addition, using generative AI-related technology to guide users to handle simple DDoS mitigation problems will also help users solve the problem of insufficient security professionals while optimizing the customer experience, thus achieving the goal of reducing costs and increasing efficiency.
Security services add to DDoS prevention effects: Relying on comprehensive analysis, testing and response platforms such as security operation centers, the continuous output of security expert capabilities and experience to end users is of great significance in building a closed-loop DDoS defense system. Additionally, security expert support will help end users deal with short-term and large-scale DDoS attacks and improve their level of emergency response.
Wang Yiting, senior cybersecurity market analyst at IDC China, said that in recent years, DDoS attacks have been favored by many attack gangs due to their low cost, high impact, and high return. The frequency and scale of DDoS attacks have continued to expand, second-level attacks have increased rapidly, the complexity of attack methods has further increased, and the difficulty of enterprise DDoS protection has gradually increased. In this context, end user requirements for DDoS mitigation products and services in terms of throughput, latency, and threat detection and response efficiency continue to increase.
For technical service providers, it is essential to improve product performance, optimize defense algorithms and strategies, integrate relevant security product capabilities, and enhance the level of supporting services. On the market side, keeping up with the country's pace and going overseas safely will become a new growth point for the DDoS market. In the future, technical service providers that focus on market hot spots, are rooted in users, and are rooted in products will provide product service solutions that better match users' needs, and will also win market recognition in fierce competition.