Spending on security-related hardware, software and services will jump 38% by 2020, researcher International Data Corporation said in a report on Wednesday.
Spending on cyber security will rise from $73.7 billion this year to $101.6 billion by the start of the next decade, according to IDC’s first Worldwide Semiannual Security Spending Guide. The increase represents a compound annual growth rate of 8.3%, more than twice the rate of spending in IT overall.
“Today’s security climate is such that enterprises fear becoming victims of the next major cyberattack or cyber extortion,” said Sean Pike, the vice president of security products for the company. “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.”
Banking will spend $8.6 billion, followed by discrete manufacturing, government and process manufacturing, IDC said. Those four industries account for 37% of global security revenues this year and will remain the largest in terms of spending through the five-year forecast.
Healthcare spending will rise 10%, the fastest-growing industry, followed by telecommunications, utilities, state and local governments and securities and investment services, each of which will grow by more than 9% during the forecast period, IDC said.
Security-related services will account for 45% of spending worldwide this year with managed security services leading the way with revenues of $13 billion, the company said. Software spending will come in second, followed by security hardware revenues of $14 billion.