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 for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d