Worldwide spending on security products and services will enjoy solid growth over the next five years according to beancounters at IDC.
According to the (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 percent over 2018. This amount will reach $151.2 billion in 2023 with a compound annual growth rate (CAGR) of 9.4 percent over the 2019-2023 forecast period.
Frank Dickson, program vice president, Cybersecurity Products at IDC said: “The market for cybersecurity products continues to grow, growth that is renewed and reinvigorated by a C-level focus on trust.
“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. Trust is addressed in consideration of the relationships (B2B, B2C, B2E and G2C) and the attributes of interaction (people, technology, organization, culture, and process). Given the complexity of implementing Trust, cybersecurity vendors are the clear beneficiaries.” Wow, that’s a complicated way of saying not very much.
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.
Services will also have the fastest spending growth with a five-year CAGR of 11.2 percent . 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.
The report said that 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.
These three industries will account for nearly 30 percent of all security spending worldwide. And all three industries will devote a significant portion (more than 35 percent ) of their spending on managed security services and integration services. The industries that will experience the fastest spending growth over the forecast period will be state/local government (12.5 percent CAGR), telecommunications (11.9 percent CAGR), and the resource industries (11.0 percent CAGR).
