New spending figures from IDC highlight double-digit growth for MSSPs
Spending on IT security products and services will rise steadily over the next five years, led by steady growth in managed security services and security-related integration services, consulting, education, and training, according to new figures from IDC.
The Lowdown: The firm’s Worldwide Semiannual Security Spending Guide, released Wednesday, predicts spending on security-related hardware, software, and services will top $106 billion by the end of this year, a 10.7% jump over 2018. Security spending is expected to reach $151 billion in 2023, demonstrating a healthy compound annual growth rate of 9.4% from 2019 to 2023, IDC said.
The Details: Fueling the rise will be the services segment, which is anticipated to generate $47 billion this year and grow at an impressive CAGR of 11.2% over the next five years. Of that $47 billion, some $21 billion will go to MSSPs providing around-the-clock monitoring and management of security operations centers.
Security software sales will generate close to $38 billion as buyers grab a range of new and updated wares such as endpoint security software, identity and digital trust software, and security analytics, intelligence, response and orchestration software. Hardware, mostly in the network security space, will account for about $21 billion, according to IDC.
Among verticals, financial services will spend the most for security this year, followed by manufacturing and federal government. Those three industries alone will account for a third of all security spending in 2019, and 35% of that spending will be focused on manages security services, IDC predicts.
The Buzz: “The market for cybersecurity products continues to grow, growth that is renewed and reinvigorated by a C-level focus on trust,” said Frank Dickson, program vice president of Cybersecurity Products at IDC. “Today’s new trust environment introduces new variables that go beyond the traditional ideas of security, risk, and compliance, introducing concepts of privacy and ethical business operations. Trust is addressed in consideration of the relationships (B2B, B2C, B2E and G2C) and the attributes of interaction (people, technology, organization, culture and process). Given the complexity of implementing Trust, cybersecurity vendors are the clear beneficiaries.”
“Looking at security spending across industries, banking, manufacturing, and government control the largest security IT budgets as they are charged with protecting highly sensitive data and meeting myriad compliance mandates,” said Karen Massey, research manager for IDC’s Customer Insights and Analysis group. “Robust investment in key security solutions is due to myriad facets of security needs, including data loss and prevention, compliance, and risk management.”