International Data Corporation (IDC) predicts spending on security hardware, software and services will jump to $103.1 billion in 2019, a 9.4% jump from 2017.IDC adds that growth in security spending will continue strong – with a 9.2% compound annual growth rate (CAGR) from 2018 through 2022, reaching $133.8 billion by the end of the period.
Verticals
Leading the security spending will be banking, discrete manufacturing, and federal/central government, which will invest a combined $30 billion in 2019 in an attempt to keep their data and that of their customers safe, according to IDC. Following these three industries will be process manufacturing, professional services and telecommunications, which IDC predicts will spend more than $6 billion this year.
The fastest spending growth during the forecast period will be state/local government (11.9% CAGR), telecommunications (11.8% CAGR) and the resource industries (11.3% CAGR), according to IDC.
“When examining the largest and fastest growing segments for security, we see a mix of industries – such as banking and government – that are charged with guarding highly sensitive information in regulated environments,” said Jessica Goepfert, IDC program vice president, customer insights and analysis. “In addition, information-based organizations like professional services firms and telcos are ramping up spending. But regardless of industry, these technologies remain an investment priority in virtually all enterprises, as delivering a sense of security is everyone’s business.”
The United States will be the single largest market for security solutions with spending forecast to reach $44.7 billion in 2019. Two industries – discrete manufacturing and the federal government – will account for nearly 20% of the U.S. total.
“The security landscape is changing rapidly, and organizations continue to struggle to maintain their own in-house security solutions and staff. As a result, organizations are turning to managed security service providers (MSSPs) to deliver a wide span of security capabilities and consulting services, which include predicative threat intelligence and advanced detection and analysis expertise that are necessary to overcome the security challenges happening today as well as prepare organizations against future attacks,” said Martha Vazquez, IDC senior research analyst, infrastructure services, in a prepared statement.