Organizations are expected to increase spending on IT security by almost 9 percent by 2018 to safeguard their cyberspaces, BCC Research reveals in its new report.
The cyber security market comprises companies that provide products and services to improve security measures for IT assets, data and privacy across different domains such as IT, telecom and industrial sectors.
The increase in spending on IT security is expected to lead to big growth rates in the global markets for cyber security.
The research firm estimates that the global cyber security market should reach $85.3 billion and $187.1 billion in 2016 and 2021, respectively.
Geographically, the American market, the largest segment, should grow from $39.5 billion in 2016 to $78.0 billion by 2021, demonstrating a five-year CAGR of 14.6 percent.
At a five-year CAGR of 21.4 percent, cyber security market in the Asia-Pacific region is expected to grow the fastest among major regions, reflecting stringent government policies to mitigate cyber threats, and a booming IT industry.
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Earlier in November, Britain’s Chancellor of the Exchequer Philip Hammond pledged to spend GBP1.9 billion ($2.3 billion) to ensure cyber security in the nation.
“If we do not have the ability to respond in cyberspace to an attack which takes down our power networks, leaving us in darkness, or hits our air traffic control system, grounding our planes, we would be left with the impossible choice of turning the other cheek and ignoring the devastating consequences or resorting to a military response,” Chancellor Philip Hammond said at a technology conference in London.
Growth factors
There are many growth factors for the overall growth of the cyber security market. Some of them are – growing complexity and frequency of threats, increasing severity of cyber security, stringent government regulations and compliance requirements.
In addition, ubiquity of online communication, digital data and social media cumulatively should drive the market.
Further, organizations are expected to increase IT spending on security solutions and services in the wake of escalating threat landscape.
Opportunities for vendors
According to BCC Reearch, rising adoption of technologies such as Internet of things, evolution of big data and cloud computing, increasing smartphone penetration and the developing market for mobile and web platforms should provide ample opportunities for vendors.
By solution type, the banking and financial segment generated the most revenue in 2015 at $22.2 billion.
The firm notes that the defense and intelligence segment should generate revenues of $50.7 billion in 2021 to lead all segments.
The healthcare sector should experience substantial growth with an anticipated 16.2 percent five-year CAGR.
Network security, which had the highest market revenue in 2015 based on solution type, should remain dominant through the analysis period.
Substantial growth is anticipated in the cloud security market, as the segment is expected to have a 27.2 percent five-year CAGR, owing to increasing adoption of cloud-based services across different applications.
“IT security is a priority in the prevailing highly competitive environment,” says BCC Research analyst Basudeo Singh. “About $100 billion will be spent globally on information security in 2018, as compared with $76.7 billion in 2015.”
IDC forecast on IT spending in cyber security
According to IDC’s newly released “Worldwide Semiannual Security Spending Guide, IT services will see higher investment in cyber security than any other segment this year, reaching $73.6 billion.
The research firm finds that services will represent almost 45 percent of global cyber security spending this year. Among its subsets, managed security services, are expected to generate $13 billion revenue in 2016.
Software will be the second-biggest category for cyber security spending this year, with 75 percent of revenues in this segment coming from endpoint security, identity and access management and security and vulnerability management software, IDC said.
Arya MM
editor@infotechlead.com
