Worldwide revenue for security products increased 15.6 percent to $106.8 billion in 2023, according to new data from the International Data Corporation (IDC) Worldwide Semiannual Security Products Tracker.
Top five companies in the cyber security products market in 2023 were Microsoft (11.6 percent share), Palo Alto Networks (5 percent), Cisco (3.8 percent), Gen Digital (3.5 percent), and Fortinet (3.1 percent) with combined revenue of $28.8 billion or nearly 27 percent of the cyber security market.
The emergence of GenAI and other AI technologies are contributing to increased budgets for security offerings in 2024, said Frank Dickson, group vice president, Security & Trust at IDC, in its report.
Deployment of GenAI brings pressure to increase cybersecurity budgets on two fronts: to secure an organization’s development and use of GenAI applications and to use GenAI assistants to uplevel security analysts, in both efficacy and efficiency.
Network Security revenues totaled $27.4 billion. Nearly three quarters of this revenue came from four secondary markets: Firewall/Unified Threat Management (UTM); Secure Web Gateway; Web Application and API Protection; and Virtual Private Network (VPN)/Zero Trust Network Access (ZTNA).
Endpoint Security revenues touched $21.6 billion.
Security Analytics revenues reached $20.0 billion.
Revenue in the Endpoint Security segment was divided between the Modern Endpoint and Consumer Digital Life Protection secondary markets.
The Vulnerability Management and Security Information and Event Management (SIEM) secondary markets accounted for nearly two thirds of the Security Analytics revenue, with the remainder coming from the Network Security Analytics, Orchestration and Automation Tools, and Cloud-native XD markets.
Identity and Access Management, Information and Data Security, and Cloud Native Application Protection Platforms (CNAPP) delivered $37.8 billion in combined revenue for 2023.
The technology category with the greatest year-over-year revenue growth in 2023 was Cloud Native Application Protection Platforms at 31.5 percent, followed by Identity and Access Management at 21.4 percent. The other categories all saw annual revenue growth in the mid- to upper teens.
In terms of deployment, public cloud continued to capture a growing share of security product spending. In 2023, nearly two thirds of all security products revenue came from public cloud deployments with the remainder coming from on-premise deployments and hardware appliances.
