Spending on Security Solutions Will Reach $103.1 Billion in 2019

Spending on Security Solutions Will Reach $103.1 Billion in 2019
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Worldwide spending on security-related hardware, software, and services is forecast to reach $103.1 billion in 2019, an increase of 9.4% over 2018, according to IDC. This pace of growth is expected to continue for the next several years as industries invest heavily in security solutions to meet a wide range of threats and requirements. Spending will achieve a compound annual growth rate (CAGR) of 9.2% over the 2018-2022 forecast period and total $133.8 billion in 2022.

The three industries that will spend the most in 2019. Banking, discrete manufacturing, and federal/central government will invest more than $30 billion combined. Three other industries (process manufacturing, professional services, and telecommunications) will each see spending greater than $6.0 billion this year.

The industries that will experience the fastest spending growth over the forecast period will be state/local government (11.9% CAGR), telecommunications (11.8% CAGR), and the resource industries (11.3% CAGR). This growth will make telecommunications the fourth largest industry for security spending in 2022 while state/local government will move into the sixth position ahead of professional services.

Managed security services will be the largest technology category in 2019 with firms spending more than $21 billion for around-the-clock monitoring and management of security operations centers. The second largest will be network security hardware, which includes unified threat management, firewalls, and intrusion detection and prevention technologies. The categories that will see the fastest spending growth over the forecast will be managed security services (14.2% CAGR), and security analytics, intelligence, response and orchestration software (10.6% CAGR).

From a geographic perspective, the United States will be the single largest market for security solutions with spending forecast to reach $44.7 billion in 2019. Two industries, discrete manufacturing and the federal government, will account for nearly 20% of the U.S. total. The second largest market will be China where security purchases by state/local government, telecommunications, and central government will comprise 45% of the national total.

Large (500-1000 employees) and very large businesses (more than 1000 employees) will be responsible for roughly two thirds of all security-related spending in 2019. These two segments will also see the strongest spending growth over the forecast with CAGRs of 11.1% for large businesses and 9.4% for very large businesses.