IT market research agency IDC has revealed the size of the security technology market and growth till 2020 along with investments by key industry verticals.
IDC said worldwide revenues for security-related hardware, software, and services will grow from $73.7 billion in 2016 to $101.6 billion in 2020 – at a compound annual growth rate (CAGR) of 8.3 percent.
Growth of security technology will be more than twice the rate of overall IT spending growth, over the five-year forecast period.
“Today’s security climate is such that enterprises fear becoming victims of the next major cyber attack or cyber extortion,” said Sean Pike, program vice president, Security Products at IDC.
Banking along will be making $8.6 billion investments in security technology solutions in 2016, said IDC.
IDC said discrete manufacturing, federal / central government, and process manufacturing are the top industries which will be making huge investment in security technology.
Banking, discrete manufacturing, federal / central government, and process manufacturing will deliver 37 percent 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 percent CAGR), followed by telecommunications, utilities, state/local government, and securities and investment services. Each of these industries will experience CAGRs above 9.0 percent over the forecast period.
Security related services will account for nearly 45 percent of all security spending in 2016, said IDC.
Managed security service 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 percent of the category’s revenues.
Security hardware revenues will reach $14.0 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 behavior analytics software with a CAGR of 12.2 percent.
Managed security services will generally be the largest segment of spending among the industries making the largest security investments. Identity and access management software and unified threat management hardware will typically receive the greatest share of revenues in each of these categories.
In 2016, the U.S. is forecast to see $31.5 billion in security-related investments. Western Europe will be the second largest market with revenues of nearly $19.5 billion, followed by Asia Pacfic (excluding Japan) region. Asia Pacfic (excluding Japan) will also be the fastest growing region with a CAGR of 13.8 percent in 2016-2020, followed by the Middle East & Africa (MEA) and Western Europe.