Skip to main content

IT Security-Related Revenues will Reach $133.7B

Cybersecurity solutions demand has remained strong during 2018, as more CIOs and CTOs need to ensure that their digital transformation projects have a high degree of digital trust built-in. Data privacy-related legislation has also fuelled the market for expert professional services that are skilled in IT security compliance.

According to the latest global market study by International Data Corporation (IDC), worldwide spending on security-related hardware, software, and services is forecast to reach $133.7 billion in 2022. Although spending growth is expected to gradually slow over the 2017-2022 forecast period, the market will still deliver a compound annual growth rate (CAGR) of 9.9 percent.

As a result, security spending in 2022 is anticipated to be 45 percent greater than the $92.1 billion forecast for 2018.

IT Security Market Development

"Privacy has grabbed the attention of Boards of Directors as regions look to implement privacy regulation and compliance standards similar to GDPR. Frankly, privacy is the new buzzword and the potential impact is very real. The result is that demand to comply with such standards will continue to buoy security spending for the foreseeable future," said Frank Dickson, vice president at IDC.

According to the IDC assessment, security-related services will be both the largest ($40.2 billion in 2018) and the fastest growing (11.9 percent CAGR) category of worldwide security spending.

Managed security services will be the largest segment within the services category, delivering nearly 50 percent of the category total in 2022. Integration services and consulting services will be responsible for most of the remainder.

Security software is the second-largest category with spending expected to total $34.4 billion in 2018. Endpoint security software will be the largest software segment throughout the forecast period, followed by identity and access management software and security and vulnerability management software.

The latter category will be the fastest growing software segment with a CAGR of 10.7 percent. Hardware spending will likely be led by unified threat management solutions, followed by internet firewall and content management.

IDC analysts believe that banking will be the industry making the largest investment in security solutions, growing from $10.5 billion in 2018 to $16 billion in 2022. Security-related services, led by managed security services, will account for more than half of the industry's spend throughout the forecast period.

The second and third largest industries, discrete manufacturing and federal or central government ($8.9 billion and $7.8 billion in 2018, respectively), will follow a similar pattern with services representing roughly half of each industry's total IT security spending.

The industries that will see the fastest growth in IT security spending will be telecommunications (13.1 percent CAGR), state or local government (12.3 percent CAGR), and the resource industry (11.8 percent CAGR).

The United States will be the largest geographic market for security solutions with total spending of $39.3 billion in 2018. The United Kingdom will be the second largest geographic market in 2018 at $6.1 billion, followed by China ($5.6 billion), Japan ($5.1 billion), and Germany ($4.6 billion).

The leading industries for security spending in the U.S. will be discrete manufacturing and the federal or central government. In the UK, banking and discrete manufacturing will deliver the largest security spending while telecommunications and banking will be the leading industries in China.

China will see the strongest IT security spending growth with a five-year CAGR of 26.6 percent. Malaysia and Singapore will be the second and third fastest growing regions with CAGRs of 21.1 percent and 18.2 percent, respectively.

Outlook for IT Security Applications Growth

From a company size perspective, large and very large businesses will be responsible for nearly two thirds of all security-related spending in 2018. Large and medium businesses will see the strongest spending growth over the forecast, with CAGRs of 11.8 percent and 10 percent respectively.

However, very large businesses will grow nearly as fast with a five-year CAGR of 10.1 percent. Small businesses will also experience solid growth (8.9 percent CAGR) with spending expected to be more than $8 billion in 2018.

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun

Why a Distributed Workforce will Raise Productivity

While most senior executives at progressive organizations have already evolved their human resource policies to accommodate employee desire for flexible working models, others still resist change. Unfortunately, many of the laggards are now experiencing the "Great Resignation" phenomenon. The global pandemic required business leaders to rethink when, where, and how their knowledge workers and front-line employees perform their work. Yet even with the ongoing pandemic recovery slowly underway, some organizations are still trying to determine their workforce approach. According to the latest worldwide market study and recent survey data from International Data Corporation (IDC), stability and geography will likely define the balance of future work strategies. Distributed Workforce Market Development On a global basis, physical office sites are expected to be the dominant location for work as legacy organizations eventually find themselves in a more stable environment. However,