Beancounters at IDC have added up some numbers and concluded that worldwide security spending will grow by 12.1 per cent to reach $219 billion in 2023.
According to IDC’s Worldwide Security Spending Guide investments in cybersecurity hardware, software, and services should reach nearly $300 billion in 2026.
The guide pinpoints the ongoing threat of cyberattacks, the demands of providing a secure hybrid work environment, and the need to meet data privacy and governance requirements as some of the biggest drivers for this growth.
IDC Data & Analytics associate research director Serena Da Rold said cloud and container deployments were increasing and there was a need to secure remote access to resources, and the compliance requirements of privacy and data protection legislation as some of the drivers for the low double-digit cybersecurity spending growth that most companies are predicted to make through 2026.
“The more mature industries, and largest spenders, will grow faster than average as they continue to invest in cutting edge security solutions to prevent and fend off ransomware attacks on their distributed workforce and to protect critical infrastructure, which is increasingly connected to the IT network,” she said.
The guide highlighted banking, discrete manufacturing, professional services and federal/central government as the industries that are expected to deliver the largest investments in 2023.
Software is predicted be the largest technology group in 2023, representing nearly half of security spending this year. Endpoint security is the leading software category, followed by identity and digital trust software and cybersecurity analytics, intelligence, response, and orchestration software.
Services will be the second largest technology group, led by the managed security services category. Hardware spending will be dominated by network security appliances.
Software is expected to be the fastest growing of the three technology groups with a five-year compound annual growth rate of 13.7 per cent, followed by services at 11.0 per cent.
The US was described in IDC’s guide as the largest geographic region for security spending in 2023 with Asia/Pacific (excluding Japan and China) and the People’s Republic of China as the next largest regions for security spending this year.
China is forecast to see the fastest spending growth over the 2021-2026 forecast period with a five-year CAGR of 18.8 per cent.
