Worldwide spending on security products and services will enjoy solid growth over the next five years as organizations continue to invest in solutions to meet a wide range of security threats and requirements. According to an updated forecast from the International Data Corporation (IDC) Worldwide Semiannual Security Spending Guide, worldwide spending on security-related hardware, software, and services will be $106.6 billion in 2019, an increase of 10.7% over 2018. This amount will reach $151.2 billion in 2023 with a compound annual growth rate (CAGR) of 9.4% over the 2019-2023 forecast period.
“The market for cybersecurity products continues to grow, growth that is renewed and reinvigorated by a C-level focus on trust,” said Frank Dickson, program vice president of Cybersecurity Products at IDC. “Today’s new trust environment introduces new variables that go beyond the traditional ideas of security, risk and compliance, introducing concepts of privacy and ethical business operations.”
Services will receive the largest share of security spending in 2019 with more than $47 billion going toward managed security services, integration services, consulting services, and IT education and training, according to the report. Software will be the second largest area of spending in 2019 with nearly $38 billion being allocated to a range of products, including endpoint security software, identity and digital trust software, and security analytics, intelligence, response and orchestration software. Hardware spending will be more than $21 billion this year with much of that total going to network security products.
Banking will be the industry that spends the most on security solutions throughout the forecast, followed by discrete manufacturing and federal/central government. Together, these three industries will account for nearly 30% of all security spending worldwide, according to 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. 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 (13.9% CAGR), security analytics, intelligence, response and orchestration software (10.5% CAGR), and consulting services (9.3 CAGR).
IDC’s Worldwide Semiannual Security Spending Guide offers detailed forecast data for security spending by 20 industries across nine regions and 43 countries. Unlike any other research in the industry, the comprehensive spending guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of security-related spending today and over the next five years.
Digital transformation is having a significant impact on security. As organizations evolve their businesses with new technologies such as AI and IoT, they must evolve their security strategy as well. This leads to solid growth in security overall, with particular emphasis on key verticals.