Global spending on security products and facilities will grow strongly by 2020, and organizations will invest in responses to meet the desires of a much larger remote workforce and a wide variety of security threats and requirements. According to a new forecast from the International Data Corporation ‘s Global Security Expense Guide (IDC), global spending on security-related hardware, software, and installations will reach $125.2 billion by 2020, an increase of 6.0% over 2019. recovers. Given the effect of COVID-19, IDC expects global security spending to succeed at $174.7 billion in 2024 with a compound annual expansion rate (CAGR) of 8.1% during the 2020-2024 forecast period. The new Expense Guide also provides an extensive SECURITY IT installation policy with the addition of thirteen-generation retail markets.
“While IT spending is shrinking in a maximum of sectors and technologies as a result of the pandemic, security spending remains significant, i.e. in sectors such as state/local governments, telecommunications, and federal/central governments that are imperative in our new environment. These 3 sectors will experience a double-digit expansion in security spending until 2024,” said Karen Massey, director of research, customer knowledge analysis. “Meanwhile, banking, production and professional facilities continue to account for the highest percentage of security spending. We are even seeing a positive progression in security in struggling sectors lately, such as retail and transport.”
The 3 industries with the largest investments in security (banking, discrete production and federal/central governments) will account for about 30% of total spending by 2020 and forecasts. The sectors with the largest security spending accumulation this year are the federal/central government (10.0%), the state/local government (8.9%) telecommunications (8.5%). These 3 industries will also provide the only double-digit CAGR during the five-year forecasting period, led by the state/local government with a CAGR of 11.1%.
Security facilities will be the largest and fastest developed segment of the security market, accounting for approximately part of all expected expenditure and an annual compound rate of 10.5% over five years. Controlled security facilities “single-tenant responses operated through third-party vendors and living on the customer’s premises (customer facilities equipment)” constitute the largest category of security facility expenses, followed by integration and consulting facilities. Managed security facilities will also be the fastest developed segment with a five-year compound rate of 13.6%.
The software will be the largest segment of the security market at the moment, governed through software analysis, intelligence, reaction and orchestration of security and terminal security. Material spending will be governed by network security needs, adding firewalls, intrusion detection and prevention, unified risk control, and virtual personal networks. Both product segments are expected to do so in 2021 with 9.6% year-on-year expansion rates for hardware and 4.4% for software.
Larger corporations (500-1000 employees) and very giant corporations (more than 1000 employees) will be guilty of two-thirds of all security-related expenses by 2020 and the forecast. These two segments will also revel in the most powerful expansion in spending, with a five-year annual compound rate of 9.3% for giant corporations and 8.6% for very giant corporations. Averages (100-499 employees) and small businesses (10-99 employees) will spend more than $30 billion combined on safety responses this year.
Geographically, the United States will be the largest market for security responses and spending is expected to succeed at $56.4 billion by 2020. Four “discrete production, federal government, banking, and professional services” industries will account for more than $20 billion in the U.S. total. China and the UK are the largest domestic markets at the moment and security spending is expected to succeed at $7.9 billion and $7.6 billion this year. Telecommunications and state/local governments will be the industries with the highest security spending in China, while banking and discrete production will be the main industries in the UK.
The Global Security Termination Guide quantifies the global revenue opportunity for critical and next-generation security purchases with detailed knowledge of security termination forecasts in 20 industries in nine regions and 43 countries. This edition (V2 2020) of the Completion Guide incorporates updated estimates of the effect of COVID-19 in all generation markets since late May 2020. It also provides an extensive POLICY of SECURITY IT installations with the addition of thirteen generation retail markets, which offer greater granularity to fourth-generation markets in the past, as well as the addition of a fifth-generation market.
About IDC Expense Guides
IDC’s expense guides provide a granular view of key generation markets from a regional and vertical industry attitude, use cases, buyers, and technologies. Expense guides are provided through the dynamic crossover format or a traditional question tool, allowing the user to seamlessly extract meaningful market data by visualizing trends and knowledge relationships.
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About IDC
Karen Massey [email protected] 508-988-7977
Michael Shirer [email protected] 508-935-4200
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