Worldwide security spending to grow 12.1 per cent in 2023 - IDC

Worldwide security spending is set to grow by 12.1 per cent to reach $219bn in 2023, according to IDCThe market watcher's new Worldwide Security Spending Guide claims investments in hardware, software, and services related to cybersecurity are expected to reach nearly $300bn in 2026.The guide pinpoints the ongoing threat of cyberattacks, the demands of providing a secure hybrid work environment, and the need to meet data privacy and governance requirements as some of the biggest drivers for this growth."Spend on security products and services will continue to outperform growth in overall IT spending," claimed Serena Da Rold, associate research director, IDC Data & Analytics.Da Rold quoted the expansion of cloud and container deployments, the need to secure remote access to resources, and the compliance requirements of privacy and data protection legislation as some of the drivers for the low double-digit cybersecurity spending growth that most companies are predicted to make through 2026."The more mature industries, and largest spenders, will grow faster than average as they continue to invest in cutting edge security solutions to prevent and fend off ransomware attacks on their distributed workforce and to protect critical infrastructure, which is increasingly connected to the IT network," she argued.The guide also highlighted banking, discrete manufacturing, professional services and federal/central government as the industries that are expected to deliver the largest investments in 2023.Software is predicted be the largest technology group in 2023, representing nearly half of all security spending this year. Endpoint security is the leading software category, followed by identity and digital trust software and cybersecurity analytics, intelligence, response, and orchestration software.Services will be the second largest technology group, led by the managed security services category with $42bn in spending expected this year. Hardware spending will be dominated by network security appliances.Software is expected to be the fastest growing of the three technology groups with a five-year compound annual growth rate of 13.7 per cent, followed by services at 11.0 per cent.The regional breakdown"The total IT security spending in Europe will keep on growing at more than 10 per cent over the forecast period," said Stefano Perini, senior research analyst, IDC European Data & Analytics."The biggest portion of that spending will still be represented by services, which will be increasingly leveraged especially by organisations with limited competences in the security area to protect their data and assets from the threat of ransomware attacks exacerbated by the current geopolitical situation in the region."The top IT security spending sectors in Europe will be finance - which will also have to constantly ensure regulatory adherence - and manufacturing - which will need to defend against increasingly frequent cyberattacks on production plants."The US was described in IDC's guide as the largest geographic region for security spending in 2023 with Asia/Pacific (excluding Japan and China) and the People's Republic of China as the next largest regions for security spending this year.China is forecast to see the fastest spending growth over the 2021-2026 forecast period with a five-year CAGR of 18.8 per cent.

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