Worldwide spending on security-related hardware, software, and services is forecast to reach $133.7 billion in 2022, according to an new update to IDC's Worldwide Semiannual Security Spending Guide, amounting to a compound annual growth rate (CAGR) of 9.9%. Security spending is forecasted to be $92.1 billion for 2018.
"Security remains an investment priority in every industry as companies seek to protect themselves from large-scale cyber attacks and to meet expanding regulatory requirements," said Eileen Smith, program director, Customer Insights and Analysis. "While security services are an important part of this investment strategy, companies are also investing in the infrastructure and applications needed to meet the challenges of a steadily evolving threat environment."
Some highlights:
- 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.
- 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. The latter will be the fastest growing software segment with a CAGR of 10.7%. Hardware spending will be led by unified threat management solutions, followed by firewall and content management.
- 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 spending. 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 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).
