Managed Services To Dominate Global Security Market In 2016
The managed security services will witness the highest amount of investments worldwide, the latest report by IDC has revealed. According to IDC’s Worldwide Semiannual Security Spending Guide, services will be the largest cyber security investment category and represent almost 45 percent of global security spending this year. Managed security services will be the largest sub-set of services and will see $13 billion in revenue this year, IDC added.
According to the report, worldwide revenues for security-related hardware, software, and services will grow from $73.7 billion in 2016 to $101.6 billion in 2020. The industries making the largest investments in security solutions in 2016 will be banking, followed by discrete manufacturing, federal/central government, and process manufacturing. These four industries 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.
“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. “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.”
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.
“The pace and threat of security attacks is increasing every year, especially across compliance-driven industries like healthcare, telecom, government and financial services,” said Eileen Smith, program director, Customer Insights and Analysis. “In addition to the traditional challenges of risk and regulatory compliance, digital transformation and the use of 3rd Platform technologies are putting even more pressure on organizations across all industries to develop and execute on a new generation of security measures.”
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. Finally, 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 12.2percent.
From a geographic perspective, the United States will be the largest market for security products throughout the forecast. 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 this year, followed by the Asia/Pacfic (excluding Japan) region. Asia/Pacfic (excluding Japan) will also be the fastest growing region with a CAGR of 13.8 percent over the 2016-2020 forecast period, followed by the Middle East & Africa (MEA) and Western Europe.
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