Enterprises’ spending on cybersecurity continues to grow, defying the pandemic-driven economic downturn impacting global IT spending.
Spending on Cloud Security is predicted to increase by 33% becoming a $585M market this year.
Security Services is forecast to drive $64.2B in worldwide revenue this year comprising 51.9% of the total market.
Data Security will grow by 7.2% becoming a $2.8B market this year.
While Gartner predicts IT spending will decline by 8% this year, dropping from $3.7T in 2019 to $3.4T, security and risk management (cybersecurity) is predicted to grow 2.4%, down from a projected growth rate of 8.7% earlier this year. For additional details on Gartner’s latest Update to their security and risk management spending forecast please see their recent Update here. Key insights include the following:
89% of all cybersecurity spending will be concentrated in five markets this year. Spending on Security Services, Infrastructure Protection, Network Security Equipment, Identity Access Management and consumer security software will together account for the majority of all investments in security and risk management this year. The following graphic is based on Gartner’s latest available forecast data for 2019 and 2020:
Eight of ten cybersecurity markets are projected to grow faster than the market average, with Cloud Security growing the fastest. Cloud Security is the smallest, fastest-growing cybersecurity market segment with market size of $439M last year. Its projected 33% growth this year is a function of its small initial market size and organizations’ preference for cloud-based cybersecurity solutions. Gartner predicts networking security equipment, including firewall equipment and intrusion detection and prevention systems (IDPS) will be most impacted by the pandemics’ hard reset on enterprise IT spending.
Cloud-based delivery models are 12% of all cybersecurity deployments and are a pivotal factor in how resilient spending continues to be in this market. Gartner points out on their recent Update that cloud-based delivery models have reached well above 50% of the deployments in key areas, including secure email and web gateways. Organizations are finding it easier to pilot cloud-based cybersecurity applications with remote IT teams, which is another advantage this delivery model has over traditional on-premise deployments. Cloud-based cybersecurity platforms also provide much-needed analytics and reporting that help to prove their business case further.
Senior Contributor Enterprise & Cloud