Skip to main content

Worldwide IT Security Spending will Reach $119.9B

More CIOs are investing in business technology that improves their organization's resilience to cyber threats. Worldwide spending on IT security-related hardware, software, and services is forecast to reach $119.9 billion in 2021, according to the latest global market study by International Data Corporation (IDC).

With nearly every industry investing in IT security solutions, enterprise spending will achieve a compound annual growth rate (CAGR) of 9.6 percent over the 2016-2021 forecast period. Worldwide spending on security products and services will total $83.5 billion in 2017, an increase of 10.3 percent over 2016.

IT Security Market Development

"Three overarching trends are driving security spending: a dynamic threat landscape, increasing regulatory pressures, and architectural changes spurred by digital transformation initiatives," said Sean Pike, vice president at IDC. "While IDC expects spending to continue growing, organizations are actively searching for product and service efficiencies that maximize spend in order to fully address such complex challenges."

IDC expects security spending to be somewhat evenly spread across four industry sectors in 2017: distribution and services ($19.7 billion), public sector ($18.6 billion), manufacturing and resources ($16.4 billion), and financial ($16.3 billion).

By 2021, however, the financial sector is forecast to move ahead of manufacturing and resources due to a 2016-2021 CAGR of 10.2 percent. Similarly, public sector security spending will nearly pull even with distribution and services by 2021 with a CAGR of 10.3 percent. The fastest growing sector over the five-year forecast period will be infrastructure with a CAGR of 11.8 percent.

On a global basis, banks, discrete manufacturers, and federal or central government agencies will spend the most on security products and services throughout the forecast period. Combined, these three industries will contribute to 30 percent of the worldwide total spending in 2017.

In addition to being among the industries spending the most on security solutions in 2017, federal or central government and banking will be two of the industries that will see the fastest growth in security spending over the five-year forecast, with CAGRs of 10.9 and 10.7 percent, respectively.

The industry that will see the fastest growth is telecommunications, with a CAGR of 12.6 percent. This growth will enable telecommunications to become the fourth largest industry in terms of total security spend in 2021, moving ahead of the process manufacturing and professional services industries.

More than 80 percent of security spending in 2017 will go to services and software. Services spending will be led by two of the largest technology categories -- managed security services ($15.25 billion) and integration services ($12.5 billion).

Software spending will be focused on three categories -- endpoint security, identity and access management, and security and vulnerability management -- that will make up more than 75 percent of the software total this year.

Hardware spending will be significantly smaller throughout the forecast, dominated by network security solutions ($13.7 billion in 2017). In addition to being the two largest technology categories, managed security services and network security will also be the fastest growing categories during the 2016-2021 forecast with CAGRs of 14.3 and 11.4 percent, respectively.

Outlook for IT Security Market Growth

The largest market for security products and services on a geographic basis will be North America with total spending of $37.8 billion this year. The second largest geographic market will be Europe, the Middle East and Africa (EMEA) at $26.2 billion followed by Asia-Pacific (excluding Japan) at $11.5 billion.

APeJ will see the fastest growth in security spending over the forecast period with a five-year CAGR of 19.9 percent. Within the region, China and Malaysia will see particularly strong growth with five-year CAGRs of 25.3 and 20.1 percent, respectively. Latin America is also expected to outperform the overall market with a CAGR of 10.4 percent.

Popular posts from this blog

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe