Worldwide security tech spending to reach $81.7 billion in 2017
A new from International Data Corporation (www.idc.com) forecasts worldwide revenues for security-related hardware, software, and services will reach $81.7 billion in 2017, an increase of 8.2% over 2016.

Global spending on security solutions is expected to accelerate slightly over the next several years, achieving a compound annual growth rate (CAGR) of 8.7% through 2020 when revenues will be nearly $105 billion.

"The rapid growth of digital transformation is putting pressures on companies across all industries to proactively invest in security to protect themselves against known and unknown threats," said Eileen Smith, program director, Customer Insights and Analysis. "On a global basis, the banking, discrete manufacturing, and federal/central government industries will spend the most on security hardware, software, and services throughout the 2015-2020 forecast. Combined, these three industries will deliver more than 30% of the worldwide total in 2017.”

In addition to the banking, discrete manufacturing, and federal/central government industries, three other industries (process manufacturing, professional services, and telecommunications) will each spend more than $5 billion on security products this year. These will remain the six largest industries for security-related spending throughout the forecast period, while a robust CAGR of 11.2% will enable telecommunications to move into the number 5 position in 2018.

Following telecommunications, the industries with the next fastest five-year CAGRs are state/local government (10.2%), healthcare (9.8%), utilities (9.7%), and banking (9.5%). Services will be the largest area of security-related spending throughout the forecast, led by three of the five largest technology categories: managed security services, integration services, and consulting services.

Together, companies will spend nearly $31.2 billion, more than 38% of the worldwide total, on these three categories in 2017. Network security (hardware and software combined) will be the largest category of security-related spending in 2017 at $15.2 billion, while endpoint security software will be the third largest category at $10.2 billion.

The technology categories that will see the fastest spending growth over the 2015-2020 forecast period are device vulnerability assessment software (16.0% CAGR), software vulnerability assessment (14.5% CAGR), managed security services (12.2% CAGR), user behavioral analytics (12.2% CAGR), and UTM hardware (11.9% CAGR).

From a geographic perspective, the United States will be the largest market for security products throughout the forecast. In 2017, the U.S. is forecast to see $36.9 billion in security-related investments. Western Europe will be the second largest market with spending of nearly $19.2 billion this year, followed by the Asia/Pacific (excluding Japan) region. Asia/Pacific (excluding Japan) will be the fastest growing region with a CAGR of 18.5% over the 2015-2020 forecast period, followed by the Middle East & Africa (MEA)(9.2% CAGR) and Western Europe (8.0% CAGR).