Managed security services represents the best return on investment for security-focused channel partners, with industry spending forecast to surpass $US100 billion by 2020.
Findings from IDC report that worldwide revenues for security-related hardware, software, and services will grow from $US73.7 billion in 2016 to $US101.6 billion in 2020, representing growth of 8.3 per cent.
As illustrated in the research, this amounts to more than twice the rate of overall IT spending growth, over the five-year forecast period, with managed security services the largest segment of spending among the industries making the largest security investments.
“Today's security climate is such that enterprises fear becoming victims of the next major cyberattack or cyber extortion,” IDC vice president of security products, Sean Pike, said.
“As a result, security has become heavily scrutinised by boards of directors demanding that security budgets are used wisely and solutions operate at peak efficiency.”
The industries making the largest investments in security solutions in 2016 will be banking ($US8.6 billion), followed by discrete manufacturing, federal/central government, and process manufacturing.
Pike said these four industries will deliver 37 per cent of worldwide security revenues this year and will remain the largest industries in terms of total spending throughout the five year forecast.
The industries that will see the fastest growth in their security investments will be healthcare (10.3 per cent), followed by telecommunications, utilities, state/local government, and securities and investment services.
Findings suggest that each of these industries will experience growth rates above nine per cent over the forecast period.
The largest category of investment will be security-related services, which will account for nearly 45 per cent of all security spending worldwide in 2016.
The largest segment, managed security services, is forecast to generate revenues of $US13 billion this year.
Meanwhile, security software will be the second largest category in 2016, with endpoint security, identity and access management, and security and vulnerability management software driving more than 75 per cent of the category's revenues.
Finally, security hardware revenues will reach $US14 billion in 2016, led by purchases of unified threat management systems.
Pike said one of the fastest growing segments of the security products market will be user behaviour analytics software with an increase of 12.2 per cent.
Managed security services will represent the largest area of spending among the industries making the largest security investments.
In addition, odentity and access management software and unified threat management hardware will typically receive the greatest share of revenues in each of these categories.
“The pace and threat of security attacks is increasing every year, especially across compliance-driven industries like healthcare, telecom, government and financial services,” IDC program director of customer insights and analysis, Eileen Smith, added.
“In addition to the traditional challenges of risk and regulatory compliance, digital transformation and the use of 3rd Platform technologies are putting even more pressure on organisations across all industries to develop and execute on a new generation of security measures.”