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

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of