Why IT security solutions spending will reach $133.8 billion
Cybersecurity investment continues to be a top priority for most IT organizations. Worldwide spending on security-related hardware, software, and services is forecast to reach $103.1 billion in 2019 -- that's an increase of 9.4 percent over 2018. The pace of growth will continue as industries invest heavily in IT security solutions to meet a wide range of cyber threats.
According to the latest market study by International Data Corporation (IDC), worldwide spending on IT security solutions will achieve a compound annual growth rate (CAGR) of 9.2 percent over the 2018-2022 forecast period and total $133.8 billion in 2022.
IT security market development
Three industries will spend the most on security solutions in 2019 -- banking, discrete manufacturing, and federal or central government -- will invest more than $30 billion combined. Three other industries (process manufacturing, professional services, and telecommunications) will each see spending greater than $6 billion this year.
The industries that will experience the fastest spending growth over the forecast period will be state or local government (11.9 percent CAGR), telecommunications (11.8 percent CAGR), and the resource industries (11.3 percent CAGR). This spending growth will make telecommunications the fourth largest industry for security spending in 2022 while state or local government will move into the sixth position ahead of professional services.
"When examining the largest and fastest growing segments for security, we see a mix of industries – such as banking and government – that are charged with guarding highly sensitive information in regulated environments. In addition, information-based organizations like professional services firms and telcos are ramping up spending, said Jessica Goepfert, program vice president at IDC.
Managed security services will be the largest technology category in 2019 with firms spending more than $21 billion for around-the-clock monitoring and management of security operations centers. Managed security services will also be the largest category of spending for each of the top five industries this year.
The second largest technology category in 2019 will be network security hardware, which includes unified threat management, firewalls, and intrusion detection and prevention technologies. The third and fourth largest investment categories will be integration services and endpoint security software.
The technology categories that will see the fastest spending growth over the forecast will be managed security services (14.2 percent CAGR), security analytics, intelligence, response and orchestration software (10.6 percent CAGR), and network security software (9.3 percent CAGR).
From a geographic perspective, the United States will be the single largest market for IT security solutions with spending forecast to reach $44.7 billion in 2019. Two industries – discrete manufacturing and the federal government – will account for nearly 20 percent of the U.S. total.
The second largest market will be China where security purchases by three industries -- state or local government, telecommunications, and central government – will comprise 45 percent of the national total. Japan and the UK are the next two largest markets with security spending led by the consumer sector and the banking industry respectively.
Outlook for IT security application growth
Large and very large businesses will be responsible for roughly two-thirds of all IT security-related spending in 2019. These two segments will also see the strongest spending growth over the forecast with CAGRs of 11.1 percent for large businesses and 9.4 percent for very large businesses.
Medium and small businesses will spend nearly $26 billion combined on IT security solutions in 2019. Across the globe, consumers are forecast to spend nearly $5.7 billion on security-related products and services this year.
Interested in hearing industry leaders discuss subjects like this and sharing their experiences and use-cases? Attend the Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London and Amsterdam to learn more.
- » How smart cybersecurity solutions are increasingly powered by AI and ML
- » IDC picks Trend Micro as the top vendor in SDC workload protection
- » Even if your cloud workloads are complex and data is privileged – it’s still on the customer to secure
- » Winning the IT availability war: How to combat costly downtime
- » Study shows continued cloud maturation in Nordics – with manufacturing a standout