Market research firm IDC forecasts that security spending on hardware, software, and services will reach $133.7 billion in 2022.
The security market should deliver a compound annual growth rate (CAGR) of 9.9 percent through 2022. By then, security spending will be 45 percent greater than the $92.1 billion forecast for 2018.
Security services will be both the largest ($40.2 billion in 2018) and the fastest growing category of worldwide security spending. Managed security services will be the largest segment within the services category, delivering nearly half of the category total in 2022.
Security software takes the second spot, with spending expected to total $34.4 billion in 2018. Endpoint security software will be the largest software segment throughout the forecast period. This will be followed by identity and access management software and security and vulnerability management software.
Hardware spending will be led by unified threat management solutions, followed by firewall and content management.
Banking Leads Other Industries in Security Spending
Banking will make the largest investment in security solutions, growing from $10.5 billion in 2018 to $16.0 billion in 2022. Security-related services, led by managed security services, will account for more than half of the industry’s spend throughout the forecast.
The second and third largest industries will be discrete manufacturing and federal/central government ($8.9 billion and $7.8 billion in 2018, respectively). They will follow a similar pattern with services representing roughly half of each industry’s total spending.
The industries that will see the fastest growth in security spending will be telecommunications (13.1 percent CAGR), state/local government (12.3 percent CAGR), and the resource industry (11.8 percent CAGR).
“Security remains an investment priority in every industry as companies seek to protect themselves from large-scale cyber attacks and to meet expanding regulatory requirements,” said IDC Customer Insights and Analysis Program Director Eileen Smith.
“While security services are an important part of this investment strategy, companies are also investing in the infrastructure and applications needed to meet the challenges of a steadily evolving threat environment,” she added.
The United States will be largest market for security solutions with total spending of $39.3 billion this year. The United Kingdom will be the second largest geographic market in 2018 at $6.1 billion. Rounding out the top five are China ($5.6 billion), Japan ($5.1 billion), and Germany ($4.6 billion).