Heightened Threat Levels Drive Cybersecurity Spending to $19 billion in Q2

Published On: November 5, 2023Categories: Buzz

Investment in cyber-resilience remained a top priority for organizations in Q2 2023, according to market research by Canalys. Overall, the worldwide cybersecurity technology market grew 11.6% year on year to US$19.0 billion, according to the company, despite ongoing macroeconomic uncertainty and constrained IT budgets.

“Threat levels are at unprecedented heights, with the number of publicly reported ransomware attacks up by more than 50% and breached data records more than doubling in the first eight months of this year,” said Matthew Ball, Chief Analyst at Canalys. “At current rates, 2023 will be the worst year on record, far exceeding 2021 levels, when ransomware came to the forefront after a series of high-profile events,”

In Q2 2023, total cybersecurity technology spending through the channel accounted for 91.5%, up from 90.5% in the same quarter a year ago.

“Discovering vulnerabilities and establishing asset inventories, as well as categorizing them based on the level of risk, is critical to prioritize investment in protection. This is also an important foundation for partners in creating remediation plans for customers when attacks take place,” added Ball. “The cybersecurity services opportunity for partners will be larger than selling cybersecurity technology this year, with spending forecast to grow 13.2% to US$143.2 billion in 2023. Managed security services and integration services will be the fastest growing areas.”

On a regional basis, spending remained resilient in North America (+12.6%), EMEA (+11.1%) and Latin America (+13.4%). But growth rates slowed in Asia Pacific (+8.8%), as organizations scaled back their spending.

The top 12 vendors accounted for nearly half of this spending. Leading the market in Q2, Palo Alto Networks grew 25.4%, fueled by demand for SASE, SecOps and cloud security. Fortinet ranked second. Cisco accounted for 6.1% of total spending, down from 6.7% last year. CrowdStrike, Check Point, Okta and Microsoft rounded out the top seven.

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