European Spending on Security Solutions Will Reach $27.3 Billion in 2019

Spending on security hardware, software, and services in Europe is expected to reach $27.3 billion in 2019, an increase of 8.3% over 2018, according to IDC. This growth trend is expected to remain constant over the next few years, driven by considerable investments in both emerging and traditional technologies. Spending by European companies on security solutions will reach a compound annual growth rate (CAGR) of 7.2% between 2018 and 2022 to total $33.6 billion in 2022.

The three industries that will drive security solutions spending in 2019 are banking, discrete, and process manufacturing, with combined investments exceeding $9 billion, a third of the total. In addition to these historically security-intensive industries, professional services, federal/central government, retail, and state/local government will also invest more than $1.5 billion each on security.

More than half of 2019 security spending in Europe will come from services ($14.8 billion), followed by software ($8.6 billion) and hardware ($3.9 billion). Among services, the most significant by far will be managed security services ($5.8 billion) and integration services ($5.4 billion), highlighting the need for access to customized and always-updated security services. Growth in managed security services for 2019 is expected to reach 14.2%, the fastest growth among all technology categories despite the already very high starting values.

More than 90% of the European IT security market in 2019 will be made up of spending in Western Europe ($24.7 billion), while less than 10% will come from Central and Eastern Europe ($2.6 billion). The leading countries in terms of security investments will be the U.K. ($6.4 billion), Germany ($4.9 billion), and France ($3.5 billion). Banking will be the leading industry in all of these countries except Germany, where discrete manufacturing will see by far the greatest volume of security investments. On the other hand, Czech Republic (10.0% CAGR) and Russia (8.6% CAGR) will be the fastest-growing countries in information security between 2018 and 2022.