Spending on information security products and services will reach $86.4 billion (+7 percent) in 2017 and will reach $93 billion in 2018, according to Gartner.
Within the infrastructure protection segment, fast growth will be in the security testing market due to data breaches and demands for application security testing as part of DevOps. Spending on emerging application security testing tools, particularly interactive application security testing (IAST), will contribute to the growth of this segment through 2021.
Security services will be the fastest growing segment, especially IT outsourcing, consulting and implementation services.
Hardware support services will see growth slowing, due to the adoption of virtual appliances, public cloud and software as a service (SaaS) editions of security solutions, which reduces the need for attached hardware support overall.
“Awareness among CEOs and boards of directors about the business impact of security incidents and an evolving regulatory landscape have led to continued spending on security products and services,” said Sid Deshpande, principal research analyst at Gartner.
The Gartner research report said that organizations can improve their security posture by addressing security and risk related hygiene elements like threat centric vulnerability management, centralized log management, internal network segmentation, backups and system hardening.
The EU General Data Protection Regulation (GDPR) has created renewed interest, and will drive 65 percent of data loss prevention buying decisions today through 2018. EU General Data Protection Regulation will have a global effect since multinationals will need to adhere to the new law.
While organizations are working toward strengthening their knowledge of the regulation, those with some form of data loss prevention (DLP) implemented are determining what additional capabilities they need to invest in specifically, integrated DLP such as data classification, data masking and data discovery.
By 2020, 40 percent of managed security service (MSS) contracts will be bundled with other security services and broader IT outsourcing (ITO) projects, up from 20 percent today.
Many organizations are looking to security consulting and ITO providers that offer customizable delivery components that are sold with the MSS.
As ITO providers and security consulting firms improve the maturity of the MSS offer, customers will have a much broader range of bundling and service packaging options through which to consume MSS offerings. The large contract sizes associated with ITO and security outsourcing deals will drive significant growth for the MSS market through 2020.
By 2021, more than 80 percent of large businesses in China will deploy network security equipment from a local vendor.
China’s cybersecurity law will contribute to displacement of U.S.-manufactured network security products with local Chinese vendors.
Despite an increase of 24 percent in 2016, Gartner expects end-user spending growth in Asia Pacific to return to single-digit yearly growth from 2018 onward, as a result of a decline in average selling prices (ASPs), due to the more competitive pricing of Chinese solutions.
