The latest IDC report has revealed the spending on security solutions in 2019 and identified industries which will be investing in cyber security.
Spending on security — hardware, software and services — is forecast to reach $103 billion in 2019.
The IDC report assumes significance because aluminium maker Norsk Hydro has shut down several automated product lines following a cyber-attack on its operations in the U.S. and Europe on Monday. CNBC later reported that Norsk Hydro will resume its IT systems on Wednesday.
Other cyber-attacks have downed electricity grids and transport systems in recent years. An attack on Italian oil services firm Saipem late last year has destroyed more than 300 of the company’s computers.
Cybersecurity firm FireEye said on Thursday that Russian hackers have targeted European government systems ahead of the EU parliament election.
Worldwide spending on security solutions will achieve a CAGR of 9.2 percent over the 2018-2022 forecast period and total $133.8 billion in 2022.
Banking, discrete manufacturing, and federal / central government will invest more than $30 billion combined in security solutions in 2019.
Process manufacturing, professional services and telecommunications will each spend $6 billion plus this year.
Telecommunications will be the fourth largest industry in security spending in 2022 while state / local government will move into the sixth position ahead of professional services, said Jessica Goepfert, program vice president, Customer Insights and Analysis at IDC.
Enterprises will be spending more than $21 billion in managed security services for around-the-clock monitoring and management of security operations centers. Managed security services will also be the largest category of spending for each of the top five industries this year.
The second largest technology category in 2019 will be network security hardware, which includes unified threat management, firewalls, and intrusion detection and prevention technologies.
The third and fourth largest investment categories will be integration services and endpoint security software.
“Organizations are turning to managed security service providers (MSSPs) to deliver a wide span of security capabilities and consulting services,” said Martha Vazquez, senior research analyst, Infrastructure Services at IDC.
Cisco, the leading enterprise networking company, has reported 18 percent growth in security revenue to $658 million in the January quarter of 2019. Cisco’s total revenue was $12.4 billion (+7 percent) mainly driven by Americas. Cisco says Americas contribute 65 percent of its total sales.
Enterprises in the United States will be spending $44.7 billion on security solutions in 2019. Two industries – discrete manufacturing and the federal government – will account for nearly 20 percent of the U.S. total.
China will be the second largest security market. Security purchases by three industries — state/local government, telecommunications, and central government – will comprise 45 percent of the national total in China.
Trend Micro, a Taiwanese cyber security company with global headquarters in Tokyo, Japan, said its sales for 2019 will be $1.532 million with operating income of $345 million and net income of $260 million.
Japan and the UK are the next two largest security solutions markets with security spending led by the consumer sector and the banking industry respectively.