IDC: Worldwide Security Spending to Reach $133.7 Billion in 2022

Worldwide spending on security-related hardware, software, and services is forecast to reach $133.7 billion in 2022, according to a new update to IDC’s Worldwide Semiannual Security Spending Guide. Although spending growth is expected to gradually slow over the 2017-2022 forecast period, the Framingham, Mass.-based market research company expects the market will still deliver a compound annual growth rate (CAGR) of 9.9%. As a result, security spending in 2022 will be 45% greater than the $92.1 billion forecast for 2018.

“Privacy has grabbed the attention of Boards of Directors as regions look to implement privacy regulation and compliance standards similar to GDPR,” said Frank Dickson, research vice president for security products at IDC. “The result is that demand to comply with such standards will continue to buoy security spending for the foreseeable future.”

Security-related services will be both the largest ($40.2 billion in 2018) and the fastest growing (11.9% CAGR) category of worldwide security spending, according to the report. Managed security services will be the largest segment within the services category, delivering nearly 50% of the category total in 2022. Integration services and consulting services will be responsible for most of the remainder. Security software is the second-largest category with spending expected to total $34.4 billion in 2018. Endpoint security software will be the largest software segment throughout the forecast period, followed by identity and access management software and security and vulnerability management software. Hardware spending will be led by unified threat management solutions, followed by firewall and content management.

The report says that banking will be the industry making the largest investment in security solutions, growing from $10.5 billion in 2018 to $16.0 billion in 2022. Security-related services, led by managed security services, will account for more than half of the industry’s spend throughout the forecast. The second and third largest industries, discrete manufacturing and federal/central government ($8.9 billion and $7.8 billion in 2018, respectively), will follow a similar pattern with services representing roughly half of each industry’s total spend. The industries that will see the fastest growth in security spending will be telecommunications (13.1% CAGR), state/local government (12.3% CAGR), and the resource industry (11.8% CAGR).

The United States will be the largest geographic market for security solutions with total spending of $39.3 billion this year. The United Kingdom will be the second largest geographic market in 2018 at $6.1 billion followed by China ($5.6 billion), Japan ($5.1 billion), and Germany ($4.6 billion).

Channel Impact^®
Security is a priority in virtually every industry as companies seek to meet regulatory requirements and protect customers from all types of attacks. As part of this initiative, companies are also investing in the underlying infrastructure and applications necessary for successful defenses.