Skip to main content

IT Security Technology Revenue will Reach $105 Billion

Concerns about IT security threats will drive new business technology investment. Worldwide revenues for security-related hardware, software, and services will reach $81.7 billion in 2017, an increase of 8.2 percent over 2016, according to the latest market study by International Data Corporation (IDC).

Global spending on security solutions is expected to accelerate over the next few years, achieving a compound annual growth rate (CAGR) of 8.7 percent through 2020 when revenues will be nearly $105 billion.

"The rapid growth of digital transformation is putting pressures on companies across all industries to proactively invest in security to protect themselves against known and unknown threats," said Eileen Smith, program director at IDC.

IT Security Technology Market Development

On a global basis, the banking, discrete manufacturing, and federal government industries will spend the most on security hardware, software, and services throughout the 2015-2020 forecast. Combined, these three industries will deliver more than 30 percent of the worldwide total in 2017.

In addition to the banking, discrete manufacturing, and central government industries, three other industries (process manufacturing, professional services, and telecommunications) will each spend more than $5 billion on security products this year.

These will remain the six largest industries for security-related spending throughout the forecast period, while a robust CAGR of 11.2 percent will enable telecommunications to move into the number 5 position in 2018.

Following telecommunications, the industries with the next fastest five-year CAGRs are state and local government (10.2 percent), healthcare (9.8 percent), utilities (9.7 percent), and banking (9.5 percent).

Services will be the largest area of security-related spending, led by three of the five largest technology categories: managed security services, integration services, and consulting services. Together, IT organizations will spend nearly $31.2 billion -- that's more than 38 percent of the worldwide total -- on these three categories in 2017.

According to the IDC assessment, Network security (hardware and software combined) will be the largest category of security-related spending in 2017 at $15.2 billion, while endpoint security software will be the third largest category at $10.2 billion.

IT security categories that will see the fastest spending growth are device vulnerability assessment software (16 percent CAGR), software vulnerability assessment (14.5 percent CAGR), managed security services (12.2 percent CAGR), user behavioral analytics (12.2 percent CAGR), and UTM hardware (11.9 percent CAGR).

The United States will be the largest market for security products throughout the forecast. In 2017, the U.S. is forecast to see $36.9 billion in security-related investments. Western Europe will be the second largest market with spending of nearly $19.2 billion this year, followed by the Asia-Pacific (excluding Japan) region.

Outlook for IT Security Market Growth

Asia-Pacific (excluding Japan) will be the fastest growing region with a CAGR of 18.5 percent over the 2015-2020 forecast period, followed by the Middle East and Africa (9.2 percent CAGR) and Western Europe (8 percent CAGR).

Large and very large businesses will be responsible for roughly two thirds of all security-related spending throughout the forecast. IDC also expects very large businesses to pass the $50 billion spending level in 2019.

Small and medium businesses will also be a significant contributor to spending with the remaining one third of worldwide revenues coming from companies with fewer than 500 employees.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Why Cloud-Native is The Future of IT Spending

The leading organizations that create a digital transformation plan will gain the most from their use of public cloud computing. However, some CIO and CTO leaders still struggle with how to build a modern cloud migration strategy. The worldwide cloud computing Infrastructure as a Service (IaaS) market grew 41.4 percent in 2021, to a total of $90.9 billion -- that's up from $64.3 billion in 2020, according to the latest market study by Gartner. "The IaaS market continues to grow unabated as cloud-native becomes the primary architecture for modern workloads," said Sid Nag, vice president and analyst at Gartner . Cloud IaaS Market Development Cloud supports the scalability and composability that advanced technologies and applications require, while also enabling enterprise leaders to address emerging needs such as sovereignty, data integration, and enhanced customer experience. In 2021, the top five IaaS providers accounted for over 80 percent of the market. Amazon AWS conti

Private 5G Networks and Enterprise Wi-Fi Converge

The global enterprise wireless networking market is evolving. Driven by a desire to take advantage of the available 6 GHz communications spectrum, with greatly improved broadband throughput and latency rates, more organizations may choose to adopt Wi-Fi 6E technologies. According to the latest worldwide market study by ABI Research, shipments of Wi-Fi 6E access points and routers will rise from 1.5 million units in 2022 to 5.2 million units by 2024. Wireless spectrum expansion is just one facet of the commercial wireless network market transition, as the technology of Wi-Fi customer premise equipment will be upgraded once again with Wi-Fi 7 (IEEE 802.11be standard) devices. Enterprise Wireless Network Market Development "The adoption of Wi-Fi 7 access points will accelerate following the protocols standardization in 2024, and just two years later, most 6 GHz enabled access point shipments will be supporting Wi-Fi 7," said Andrew Spivey, industry analyst at ABI Research . Anot