Security spending in New Zealand is expected to reach $550 million in 2018, according to data from research firm Gartner.
For 2019, the growth is expected to be of 9.9 per cent, or $604 million, with the fastest growing product category cloud security - even though this is still a small category in the region which will represent $1 million of the spending in 2018.
Meanwhile, worldwide spending on information security products and services is forecasted to increase 12.4 per cent reaching more than US$114 billion in 2018, according to findings.
In 2019, the market is forecast to grow 8.7 per cent to US$124 billion.
More than US$58 billion is expected to be spent on security services worldwide - infrastructure protection is the second highest spending focus and should reach US$14.1 billion in 2018 followed by network security equipment with US$12.4 billion.
"Security leaders are striving to help their organisations securely use technology platforms to become more competitive and drive growth for the business," Gartner research director Siddharth Deshpande said.
"Persisting skills shortages and regulatory changes like the EU’s Global Data Protection Regulation (GDPR) are driving continued growth in the security services market."
In September and October 2017, Gartner conducted a survey to gain insights about current and planned security spending, finding that the top three drivers for security spending centre around security risks; business needs; and industry changes.
Privacy concerns are also becoming a key factor with Gartner saying privacy concerns will drive at least 10 per cent of market demand for security services through 2019 and will impact a variety of segments, such as identity and access management (IAM), identity governance and administration (IGA) and data loss prevention (DLP).
Gartner identified some trends affecting information security spending in 2018-2019 such as risk management and privacy concerns within digital transformation initiatives, which is expected to drive additional security service spending through 2020 for more than 40 per cent of organisations.
From a partner perspective, subscription based and managed services are expected to represent at least 50 per cent of security software delivery by 2020.
Security-as-a-service is on the way to surpassing on-premises deployments, and hybrid deployments are enticing buyers, according to Gartner.
During another survey, Gartner found that s large portion of respondents plan to deploy specific security technologies, such as security information and event management (SIEM), in a hybrid deployment model in the next two years.
Managed services represented roughly 24 per cent of deployments, on average.
"On-premises deployments are still the most popular, but cloud-delivered security is becoming the preferred delivery model for a number of technologies," Deshpande added.