New IDC Spending Guide Sees Solid Growth Ahead for Security Products and Services>
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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. 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%. 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. And all three industries will devote a significant portion (more than 35%) 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% CAGR), telecommunications (11.9% CAGR), and the resource industries (11.0% CAGR). 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). >From a geographic perspective, the United States will be the single largest market for security solutions with spending forecast to reach $46.2 billion in 2019. Two industriesâdiscrete manufacturing and the federal governmentâwill account for nearly 20% of the U.S. total. The second largest country will be China where security purchases by three industriesâstate/local government, telecommunications, and bankingâwill comprise 47% of the national total. The UK and Germany are the next two largest countries with security spending led by the banking and discrete manufacturing industries, respectively.
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