Spending on managed security services will surpass more than US$21 billion at a global level during 2019, dominated by demand for around-the-clock monitoring and management of security operations centres.
In representing the largest share of security spending, more than $47 billion will be invested in managed security services, integration services, consulting services and IT education and training during the 12-month period.
That’s according to IDC findings, which places the channel at the centre of a customer investment strategy within an expanding security market.
On the whole, services is forecast to represent the "fastest area of spending growth" with a five-year compound annual growth rate (CAGR) of 11.2 per cent. Delving deeper, software is expected to follow suit with nearly $38 billion allocated to products such as endpoint security software, identity and digital trust software, alongside security analytics, intelligence, response and orchestration software.
Next up is hardware spending, which will account for more than $21 billion in 2019 with a strong focus on network security products.
“The market for cyber security products continues to grow, growth that is renewed and reinvigorated by a C-level focus on trust,” said Frank Dickson, program vice president of cyber security products at IDC. “Today's new trust environment introduces new variables that go beyond the traditional ideas of security, risk and compliance, introducing concepts of privacy and ethical business operations.
“Trust is addressed in consideration of the relationships (B2B, B2C, B2E and G2C) and the attributes of interaction (people, technology, organisation, culture and process). Given the complexity of implementing trust, cyber security vendors are the clear beneficiaries.”
Aside from services, the second largest technology category in 2019 will be network security hardware, spanning unified threat management, firewalls and intrusion detection and prevention technologies. Integration services and endpoint security software rank third and fourth respectively, according to IDC.
The technology categories that will see the fastest spending growth over the forecast will be managed security services (13.9 per cent CAGR), security analytics, intelligence, response and orchestration software (10.5 per cent CAGR) and consulting services (9.3 CAGR).
Specific to sectors, IDC reported that banking will spend the most on security solutions during the next five years, followed by discrete manufacturing and federal/central government. Together, these three industries will account for nearly 30 per cent of all security spending worldwide.
"Looking at security spending across industries, banking, manufacturing and government control the largest security IT budgets as they are charged with protecting highly sensitive data and meeting myriad compliance mandates," added Karen Massey, research manager, IDC.
“Robust investment in key security solutions is due to myriad facets of security needs, including data loss and prevention, compliance and risk management, increasingly sophisticated cyber schemes, and digital transformation complexity.”
More broadly speaking, and according to IDC, worldwide spending on security-related hardware, software and services will total $106.6 billion in 2019, representing an increase of 10.7 per cent compared to 2018.