Published on November 16, 2023, 8:13 pm

Worldwide spending on security solutions and services is projected to reach $219 billion by 2023, a 12.1% increase compared to the previous year, according to IDC’s Worldwide Security Spending Guide. This growth is driven by the ongoing threat of cyberattacks, the need to provide a secure hybrid work environment, and comply with data privacy and governance requirements.

Investments in hardware, software, and services related to cybersecurity are expected to surpass $300 billion by 2026. Serena Da Rold, Associate Research Director at IDC Data & Analytics, states that spending on security products and services will continue to outpace overall IT spending. This trend reflects the growing importance of cloud and container deployments, securing remote access resources, and compliance with privacy and data protection legislation.

The industries driving the largest investments in security products and services in 2023 include banking, discrete manufacturing, professional services, and federal/central government. Banks and discrete manufacturers will invest roughly equal amounts in software and services. Managed security services will receive the highest expenditures as these industries seek protection against cyberattacks.

On the other hand, professional services will prioritize software investments for governance, risk, compliance (GRC), and endpoint security. The federal/central government sector will primarily focus on service-related spending. Together, these four industries will account for more than one-third of all security spending in 2023.

In terms of technology types contributing to security spending, software leads the way with nearly half of all investments in this area. Endpoint security is expected to be the leading software category, followed by identity and digital trust software and cybersecurity analytics intelligence response orchestration (CIRO) software.

Services are predicted to be the second-largest technology group with managed security services accounting for $42 billion in spending this year. Network security appliances dominate hardware spending.

Over the forecast period from 2021-2026, software is projected to have the highest growth rate among technology groups, with a compound annual growth rate (CAGR) of 13.7%. Services will follow closely behind with an 11.0% CAGR.

These findings highlight the increasing importance placed on cybersecurity and the need for robust security solutions across industries. The continued investment in security products and services is essential to protect against the ever-evolving threat landscape and ensure the safety of critical infrastructure, distributed workforces, and sensitive data.

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