Skip to main content

European CISOs Drive Increased IT Security Investment

The Chief Information Security Officer (CISO) role has gained new importance, due to increased cyber threats. Moreover, the COVID-19 pandemic has had a significant impact on security-related IT investment in Europe, which will continue to grow rapidly in 2021.

During the pandemic, organizations have been re-architecting their IT security perimeters to protect operations and critical data. The pandemic, and measures to curb it with remote working, have pushed the enterprise network outwards and heightened the risk for CISOs.

According to the latest worldwide market study by International Data Corporation (IDC), overall investment in IT security within Europe is projected to exceed $35.6 billion during 2021 with a compound annual growth rate (CAGR) of 8.8 percent between 2020 and 2024 -- now forecast to reach $46.4 billion in 2024.

IT Security Market Development

The banking sector traditionally has the highest spending on IT security due to the particularly sensitive customer data that is integral to the industry. Besides, financial service organizations are eager to optimize their IT infrastructure via digital transformation.

The COVID-19 pandemic also increased focus on remote servicing of clientele, making data protection and identity and digital trust solutions even more invaluable. Additionally, the European banking sector is leading in terms of spending on services for integration, consulting, support services, and more.

Spending on IT services in the sector is projected at 7.3 percent year-on-year growth in 2021 to reach $4.8 billion. The second-place vertical market is discrete manufacturing with 7 percent projected to reach $3.8 billion, followed by process manufacturing with $3.1 billion in spending based on 7.6 percent growth.

IT Security spending also varies according to regions. In Central and Eastern Europe (CEE), for example, the second-largest vertical is federal or central government, with discrete manufacturing in third place.

In Western Europe, conversely, banking is still the largest industry by IT security spending, followed by discrete manufacturing in second place and process manufacturing in third.

Broken down by services category, security services are projected to comprise the greatest share of IT security investment in 2021, with spending expected to accelerate further as organizations in Europe accelerate their digital transformation and migrate systems and workloads to the cloud. However, security software and hardware investments are expected to grow at a slightly lower rate.

"After the initial response to the pandemic, organizations in Europe began to plan more strategically for an increasingly digital future, where interactions between businesses, their employees, partners, and customers (or citizens) are predominantly digital rather than physical," says Mark Child, research manager at IDC.

According to the IDC assessment, this transition will require secure infrastructure and processes, and not every organization has the resources and expertise in-house. This is also driving strong growth in security services -- particularly public cloud services, managed security services, and IT security consulting.

Outlook for IT Security Investment in Europe

CEE governments invested heavily in IT security during 2020 and are expected to continue doing so through 2024, owing to the need to provide digitalized services to citizens and businesses, and to enable remote working, distance learning, or other operations in which a physical presence is not possible.

IDC analysts believe that Central and Eastern Europe are catching up to Western Europe when it comes to the maturity of IT security spending in the government sector, and the current spending levels of verticals illustrate these trends.

That said, I anticipate that the adoption of Hybrid Workforce models will motivate all CIOs to reassess their organization's secure network access requirements. Home-based workers will likely need to reach software applications within a managed data center, plus a variety of public cloud-based SaaS apps.

Popular posts from this blog

Low-Code Software Tools Fuel Transformation

Many CEOs have shared their concern that the digital transformation apps backlog within their organization is causing delays in planned growth initiatives. Therefore, they're investing in new approaches to the challenge. The worldwide market for low-code software development technologies is forecast to total $26.9 billion in 2023 -- that's an increase of 19.6 percent from 2022, according to the latest worldwide market study by Gartner. "Business Technologist" roles and a growing number of hyper-automation initiatives will be the key drivers accelerating the adoption of low-code software technologies through 2026. Low-Code Software Market Development "Organizations are increasingly turning to low-code development technologies to fulfill growing demands for speed application delivery and highly customized automation workflows," said Varsha Mehta, senior research specialist at Gartner . Equipping both professional IT developers and non-IT practitioners -- e.g.

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun