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The first Worldwide Semiannual Security Spending Guide from IDC forecasts worldwide revenues for security-related hardware, software, and services will grow from $73,7-billion in 2016 to $101,6-billion in 2020.
This represents a compound annual growth rate (CAGR) of 8.3%, more than twice the rate of overall IT spending growth, over the five-year forecast period. The new spending guide expands on IDC’s previous security forecasts by offering greater detail on spending by geography, industry, and technology.
“Today’s security climate is such that enterprises fear becoming victims of the next major cyberattack or cyber extortion,” says Sean Pike, program vice president, Security Products. “As a result, security has become heavily scrutinized 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 ($8,6-billion), followed by discrete manufacturing, federal/central government, and process manufacturing. These four industries will deliver 37% 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% CAGR), followed by telecommunications, utilities, state/local government, and securities and investment services. Each of these industries will experience CAGRs above 9% over the forecast period.
The largest category of investment will be security-related services, which will account for nearly 45% of all security spending worldwide in 2016. The largest segment, managed security services, is forecast to generate revenues of $13-billion this year.
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% of the category’s revenues.
Finally, security hardware revenues will reach $14-billion in 2016, led by purchases of unified threat management systems.
One of the fastest growing segments of the security products market will be user behaviour analytics software with a CAGR of 12,2%.