According to the latest Worldwide Security Spending Guide from the International Data Corporation (IDC), worldwide spending on security solutions and services is forecast to be $219 billion in 2023, representing a 12.1% increase compared to 2022. This upward trend is expected to continue, with cybersecurity investments projected to reach nearly $300 billion by 2026.
The primary drivers of this growth include the ongoing threat of cyberattacks, the need to provide a secure hybrid work environment, and the increasing demand to meet data privacy and governance requirements. The industries set to make the largest investments in security products and services in 2023 are Banking, Discrete Manufacturing, Professional Services, and Federal/Central Government. Together, these four sectors are expected to account for more than one-third of all security spending.
The industries expected to experience the fastest spending growth over the forecast period are Securities & Investment Services, Telecommunications, and Banking. As a result, we can expect these sectors to place more emphasis on cybersecurity in the coming years.
Software is projected to be the largest technology group in 2023, with Endpoint Security, Identity and Digital Trust software, and Cybersecurity Analytics, Intelligence, Response, and Orchestration software leading the charge. Managed Security Services will lead the way in services spending, with $42 billion expected to be spent this year. Network Security Appliances will dominate hardware spending.
The United States is set to be the largest geographic region for security spending in 2023, followed by Western Europe, Asia/Pacific (excluding Japan and China), and the People’s Republic of China. Discrete Manufacturing and Professional Services will be the leading industries for security spending in the US, while Banking and Discrete Manufacturing will be the top investors in Western Europe.
The Worldwide Security Spending Guide provides detailed forecast data for security spending by 20 industries across nine regions and 48 countries, as well as five company size bands. The guide quantifies the global revenue opportunity for both core and next-generation security purchases.
The continued growth in security spending reflects the increasing importance of cybersecurity in today’s business landscape. As cyber threats become more sophisticated and prevalent, it is imperative for organizations across all industries to invest in the latest security solutions and services to protect their assets and data. The Worldwide Security Spending Guide serves as a valuable resource for organizations looking to stay ahead of the curve in the fast-evolving world of cybersecurity.
