Spending on cyber security solutions and services is forecast to grow at 12.1 percent to $219 billion in 2023, according to the latest IDC report.
Investments in cybersecurity are expected to reach nearly $300 billion in 2026, driven by the threat of cyberattacks, the demands of providing a secure hybrid work environment, and the need to meet data privacy and governance requirements.
“Spend on security products and services will outperform growth in overall IT spending,” said Serena Da Rold, associate research director, IDC Data & Analytics. “Almost all industries and company size segments will see low double-digit growth through 2026.”
Banking, Discrete Manufacturing, Professional Services, and Federal/Central Government will top in terms of investments in cyber security in 2023.
Both banks and discrete manufacturers will invest about evenly in software and services with the largest expenditures going toward managed security services to protect against cyberattacks.
Professional Services will see notably greater investments in software with a focus on governance, risk, and compliance (GRC) and endpoint security.
Services spending will be the largest area of focus for Federal/Central Government. Combined, these four industries will account for more than a third of all security spending in 2023.
Securities & Investment Services, Telecommunications, and Banking are expected to have the fastest spending growth over the 2021-2026 forecast period.
Software will be the largest technology group in 2023, representing nearly half of all security spending this year.
Endpoint Security will be the leading software category, followed by Identity and Digital Trust software and Cybersecurity Analytics, Intelligence, Response, and Orchestration software.
Services will be the second largest technology group, led by the Managed Security Services category with $42 billion in spending expected this year.
Hardware spending will be dominated by Network Security Appliances. Software will be the fastest growing of the three technology groups with a five-year compound annual growth rate of 13.7 percent, followed by Services at 11 percent.
The United States will be the largest region for security spending in 2023. Discrete Manufacturing and Professional Services will the leading industries for security spending in the USA.
The second largest region for security spending will be Western Europe, where the Banking and Discrete Manufacturing industries will be the leading investors.
Asia Pacific (excluding Japan and China) and the People’s Republic of China will be the next largest regions for security spending this year. China is forecast to see the fastest spending growth over the 2021-2026 forecast period with a five-year CAGR of 18.8 percent.
The total IT security spending in Europe will keep on growing at more than 10 percent over the forecast period.
“The top IT security spending sectors in Europe will be finance – which will have to constantly ensure regulatory adherence – and manufacturing – which will need to defend against increasingly frequent cyberattacks on production plants,” said Stefano Perini, senior research analyst, IDC European Data & Analytics.
