Cybersecurity spending to grow 13% to $223 bn: Canalys

Global cybersecurity spending will increase 13.2 percent in 2023 to $223.8 billion, according to Canalys report.
Cyber security investment forecast
Top cyber security vendors in Q3 2022 were Palo Alto Networks (with 8.4 percent share), Cisco (6.9 percent) and Fortinet (6.7 percent).

Growth in the delivery of cybersecurity services will be outpacing cybersecurity product shipments, the report said.

Spending on cybersecurity among governments and enterprises will rise, but investment by smaller businesses will weaken as economic conditions deteriorate.

Ransomware remains the biggest threat to organizations from an operational, financial and brand perspective. But the emergence and abuse of generative AI models, such as ChatGPT, will increase the risk to another level in 2023.

“Organizations are already struggling to deal with current threat levels and cannot afford to cut back on spending as it will leave them even more vulnerable. Instead, they will need to work more closely with channel partners to make smarter investments,” said Matthew Ball, Chief Analyst at Canalys.

The delivery of cybersecurity services, including consulting, outsourcing, deployment, integration, maintenance and managed services, is forecast to grow 14.1 percent to $144.3 billion in 2023. This will account for 64.5 percent of the worldwide cybersecurity market in 2023.

Srikara Upadhyaya, Research Analyst at Canalys, said: “There will be more consulting engagements for channel partners, creating opportunities around deploying and integrating multiple products from different vendors, while reducing operational complexity via managed services.”

Overall, more than 90 percent of total cybersecurity product and services spending will go through channel partners in 2023.

Shipments of cybersecurity products, including endpoint security, network security, web and email security, data security, identity and access management, and vulnerability and security analytics, will increase 11.7 percent to $79.5 billion in 2023.