Spending on security to grow 12.6% to $23 bn in 2021: IDC

Spending on security hardware, services, and software in Asia Pacific is expected to increase 12.6 percent to reach $23.1 billion in 2021, according to IDC report.
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IDC expects investment on security related products and services to grow at a five-year CAGR of 13.3 percent over the forecast period (2019-24) and reach $35 billion by 2024 — driven by increased cloud adoption, massive WFH migration, and transformation projects by enterprises to overcome operational challenges.

Industries that will drive the security spending in 2021 are banking, telecommunications, federal/central and state/local government. Together, these industries will constitute half of the total security spending, IDC said.

The industries that are seeing the greatest increase in security spending are state/local government (18.5 percent), transportation (13.9 percent), and retail (13.7 percent) – driven by increased focus on data security, e-commerce, work from home, digitalization of logistic monitoring, payments, and contracts, and in playing catch up due to underspending in the area in previous years.

“While leading organizations are starting to adopt a more platform-based approach, the majority are still buying point-solutions to address specific concerns. This majority needs to change their mindset and invest strategically into their security architectures,” says Simon Piff, Vice President of Trust, Security, and Blockchain Research at IDC Asia Pacific.

Services will be both the largest and the fastest growing category among security markets, accounting for almost half of security spending throughout the forecast period at a 13.4 percent five-year CAGR.

Among services, the most significant will be managed security services – delivering around 40 percent of the security services spending throughout the forecast – followed by consulting services and integration services. As the IT environment becomes more diverse and complex, enterprises are more dependent on managed service providers for security.

Security hardware will be the second largest of the security market, dominated by network security needs – including firewalls, intrusion detection and prevention, unified threat management, and virtual private networks.

Security software spending is led by endpoint security, and Identity and Digital Trust Software, delivering more than half of the overall security software spend in 2021. Driving the growth in the security software category is the concern of enterprises to protect devices and networks used by remote work force from cyberattacks.

China alone will account more than 40 percent of total Asia Pacific security spending in 2021, and the country spending is projected to take off at a five-year CAGR of 16.8 percent during the forecast period.

The report said telecommunications and State / Local Government are the two drivers of the Chinese market for security related solutions, collectively accounting to one third of overall China spend in 2021.

Australia and India are the next two largest countries in terms of security spending due to the presence of large number of businesses catering to domestic as well as international customers. Together, these countries will account 26 percent of the overall security spending in 2021.