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Spending on Security Products and Services Continues to Grow in 2019

By Silviu Stahie on Oct 22, 2019 | 0 Comments

The cybersecurity market is seeing a continuous increase in range, scope, and value as new threats reshape the business landscape. Companies look to continue expanding security-related operations, a new forecast from IDC shows.

The growing need for cybersecurity is felt across industries. Proof of that is the increase in spending on security-related hardware, software and services, which is estimated at $106.6 billion in 2019, 10.7% higher than in 2018. By 2023, spending is expected to reach $151.2 billion.

"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," explained Frank Dickson, program vice president, Cybersecurity Products at IDC. “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."

The most significant increase in spending in 2019 will come in managed security services (MSPs), which will receive more than $47 billion, along with integration services, consulting services, and IT education and training. The software aspect is also seeing a surge in funds, with $38 billion directed toward products such as endpoint security, security analytics, and intelligence, response, to name a few.

 

Impact on industry

 

One of the industries most targeted industries by advanced cybersecurity threat actors is the banking sector, and IDC forecasts that it will be the largest spender on security solutions, followed closely by discrete manufacturing and federal or central government. These industries will generate 30% of all security spending.

On the other hand, the technology category, with MSPs as the principal exponent, is set to attract over $21 billion, followed by network security hardware, integration services, and endpoint security software.

As expected, the largest market will be the United States, with $46.2 billion spent in 2019. The discrete manufacturing and the federal government sectors will account for almost 20% of the market. China takes a close second place, with Germany in third and the UK in fourth.

"Large (500-1000 employees) and very large businesses (more than 1000 employees) will be responsible for two-thirds of all security-related spending in 2019,” says IDC. “These two segments will also see the strongest spending growth over the forecast with CAGRs of 11.4% for large businesses and 9.6% for very large businesses. Medium (100-499 employees) and small businesses (10-99 employees) will spend nearly $27 billion combined on security solutions in 2019.”

Last year's IDC report made a similar forecast in terms of growth and expenditures, with security-related services projected to be the fastest-growing category of worldwide security spending. Of course, the biggest spenders were also banking, manufacturing, and government, and they remain in the same positions for 2019.

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Author: Silviu Stahie

Silviu is a seasoned writer who followed the technology world for almost two decades, covering topics ranging from software to hardware and everything in between. He's passionate about security and the way it shapes the world, in all aspects of life. He's also a space geek, enjoying all the exciting new things the Universe has to offer.