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, the company said.
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 USD 106.6 billion in 2019, an increase of 10.7% over 2018. This amount will reach USD 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 USD 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 USD 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 USD 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).
IDC´s Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. To learn more about IDC, visit www.idc.com.
