Worldwide security spending — hardware, software, and services – will increase 10.2 percent to $91.4 billion in 2018, according to IDC.
Spending on security solutions will achieve a compound annual growth rate (CAGR) of 10 percent over the 2016-2021 forecast period and total $120.7 billion in 2021.
The security spending forecast by IDC indicates Check Point Software Technologies, Palo Alto Networks, Symantec, Trend Micro, Fortinet, FireEye and McAfee, among others.
“Banks, discrete manufacturers, especially within the high-tech sector, and the federal government are spending the most on security to avoid large scale cyber-attacks and adhere to regulatory compliance,” said Eileen Smith, program director, Customer Insights and Analysis.
Telecom and state and local government will drive growth in worldwide security spending due to the need the to protect IoT connected devices and infrastructure.
Banking, discrete manufacturing, and federal/central government will spend more than $27 billion in security.
Process manufacturing, professional services, consumer, and telecommunications will be spending more than $5 billion each this year.
Main countries
United States $38 billion
United Kingdom $6.5 billion
China $6 billion
Japan $5.1 billion
Germany $4.6 billion
Security spending growth over 2016-2021
Telecommunications 13.1 percent CAGR
Education 11.6 percent CAGR
State / local government 11.6 percent CAGR
Banking 11.4 percent CAGR
Resource industries 11.3 percent CAGR
Enterprises will be spending $18 billion on managed security services. Network security hardware, integration services and endpoint security software are the other top areas.
Security technology categories
Managed security services 14.7 percent CAGR
Network security hardware 11.3 percent CAGR
Security and vulnerability management software 10.9 percent CAGR
Network security software 10.7 percent CAGR
The IDC report said United States will be spending nearly $38 billion on security solutions this year. United Kingdom will be spending $6.5 billion on security solutions. China will be spending $6.0 billion on security solutions. Japan will be spending $5.1 billion on security solutions. Germany will be $4.6 billion on security solutions.
“30 percent of security spending will be on vendors that provide an integrated platform approach to security by 2020,” said Sean Pike, program vice president for IDC’s Security Products and Legal, Risk, and Compliance programs. “This shift will happen partly because of budget, but mostly because of complexity.”
