Dive Brief:
- Revenues for security-related hardware, software and services worldwide are expected to grow 8.3% by 2020, from $73.7 billion in 2016 to $101.6 billion in 2020, according to new data from IDC. That’s twice the rate of overall IT spending growth.
- Security services are projected to be the largest category of investment, accounting for nearly 45% of all security spending worldwide in 2016. In particular, managed security services will generate the most revenue, forecast to reach $13 billion this year.
- The U.S. will be the biggest investor in security hardware, software and services among the countries examined, pouring $31.5 billion into security-related investments this year alone.
Dive Insight:
It’s no surprise enterprises are spending more to protect themselves given the dramatic rise in cyberthreats over the last year. But companies are looking toward managed security solutions, taking at least some of the day-to-day security responsibilities out of their hands and instead tapping experts.
After managed security services, security software is the second largest category, with endpoint security, identity and access management, and security and vulnerability management software driving more than 75% of the category's revenues, according to the report.
Meanwhile, security hardware revenues will reach $14 billion in 2016, with unified threat management systems the largest category. One of the fastest growing segments of the security products market will be user behavior analytics software, with a CAGR of 12.2%, according to the report.
Among industries, banking, discrete manufacturing, federal/central government and process manufacturing will be the biggest spenders on IT security over the next five years, accounting for 37% of worldwide security revenues in 2016. Healthcare will see the fastest growth in security investments.