Network security, managed security services and endpoint security could represent the top worldwide security technology spending categories in 2017, according to global market intelligence firm International Data Corp (IDC).
The IDC Worldwide Semiannual Security Spending Guide indicated services could prove to be the largest area of security technology spending in 2017. Also, the guide revealed companies may spend nearly $31.2 billion on managed security services, integration services and consulting services this year.
Security Technology Spending May Increase
Network security (hardware and software combined) is the largest category of projected security technology spending in 2017, IDC noted. Moreover, the technology categories that will see the fastest spending growth between 2015 and 2020 include:
- Device vulnerability assessment software.
- Software vulnerability assessment.
- Managed security services.
- User behavioral analytics.
- Unified threat management (UTM) hardware.
Worldwide revenues for security-related hardware, software and services could reach $81.7 billion this year, IDC stated. In addition, global spending on security solutions is expected to increase at a compound annual growth rate (CAGR) of 8.7 percent through 2020, with revenues of nearly $105 billion.
"The rapid growth of digital transformation is putting pressures on companies across all industries to proactively invest in security to protect themselves against known and unknown threats," Eileen Smith, IDC's program director for customer insights and analysis, said in a prepared statement.
Large Businesses Drive Security Tech Spending
Large (more than 500 employees) and very large (more than 1,000 employees) businesses will be responsible for roughly two thirds of all security technology spending between 2015 and 2020, IDC pointed out. Security technology spending for very large businesses also is expected to surpass $50 billion by 2019.
Meanwhile, the IDC guide showed the top industries to spend on security hardware, software and services between 2015 and 2020 are:
- Discrete manufacturing,
- Federal/central government.
- Process manufacturing.
- Professional services.
The United States will be the largest market for security products between 2015 and 2020, IDC stated. Western European organizations may spend heavily on security products over the next several years as well.
"European organizations show a strong focus on security matters with data, cloud and mobile security being the top three security concerns," Angela Vacca, IDC's senior research manager for customer insights and analysis, said in a prepared statement. "In particular, Western European utilities, professional services and healthcare institutions will increase their security spending the most while the banking industry remains the largest market."