Security Risks Drive Growth in Overall Security Spending
December 7, 2017 | Gartner, Inc.Estimated reading time: 2 minutes
Gartner, Inc. forecasts worldwide enterprise security spending to total $96.3 billion in 2018, an increase of 8% from 2017. Organizations are spending more on security as a result of regulations, shifting buyer mindset, awareness of emerging threats and the evolution to a digital business strategy.
"Overall, a large portion of security spending is driven by an organization's reaction toward security breaches as more high profile cyberattacks and data breaches affect organizations worldwide," said Ruggero Contu, research director at Gartner. "Cyberattacks such as WannaCry and NotPetya, and most recently the Equifax breach, have a direct effect on security spend, because these types of attacks last up to three years."
This is validated by Gartner's 2016 security buying behavior survey*. Of the 53% of organizations that cited security risks as the No. 1 driver for overall security spending, the highest%age of respondents said that a security breach is the main security risk influencing their security spending.
As a result, security testing, IT outsourcing and security information and event management (SIEM) will be among the fastest-growing security subsegments driving growth in the infrastructure protection and security services segments.
Regulatory compliance and data privacy have been stimulating spending on security during the past three years, in the U.S. (with regulations such as the Health Insurance Portability and Accountability Act, National Institute of Standards and Technology, and Overseas Citizenship of India) but most recently in Europe around the General Data Protection Regulation coming into force on May 28 2018, as well as in China with the Cybersecurity Law that came into effect in June 2016. These regulations translate into increased spending, particularly in data security tools, privileged access management and SIEM.
Gartner forecasts that by 2020, more than 60% of organizations will invest in multiple data security tools such as data loss prevention, encryption and data-centric audit and protections tools, up from approximately 35% today.
Skills shortages, technical complexity and the threat landscape will continue to drive the move to automation and outsourcing. "Skill sets are scarce and therefore remain at a premium, leading organizations to seek external help from security consultants, managed security service providers and outsourcers," said Mr. Contu. "In 2018, spending on security outsourcing services will total $18.5 billion, an 11% increase from 2017. The IT outsourcing segment is the second-largest security spending segment after consulting."
Gartner predicts that by 2019, total enterprise spending on security outsourcing services will be 75% of the spending on security software and hardware products, up from 63% in 2016.
Enterprise security budgets are also shifting towards detection and response, and this trend will drive security market growth during the next five years. "This increased focus on detection and response to security incidents has enabled technologies such as endpoint detection and response, and user entity and behavior analytics to disrupt traditional markets such as endpoint protection platforms and SIEM," said Mr. Contu.
Gartner analysts will further discuss where to deploy technology to add value to security, risk and privacy programs at the Gartner Identity & Access Management Summit, 5-6 March 2018 in London.
Suggested Items
Gartner Survey Finds 61% of Organizations Are Evolving Their D&A Operating Model Because of AI Technologies
05/01/2024 | Gartner, Inc.Sixty-one percent of organizations are forced to evolve or rethink their data and analytics (D&A) operating model because of the impact of disruptive artificial intelligence (AI) technologies, according to a new Gartner, Inc. survey.
Real Time with… IPC APEX EXPO 2024: Operational Excellence and Smart Factory Initiatives
04/30/2024 | Real Time with...IPC APEX EXPOOperational excellence and operational efficiency are defined in this interview with Koh Young General Manager Joel Scutchfield. He touches on automation, AI, and collaboration as solutions to resource limitations. Koh Young's data-driven approach uses AI for process adjustments, data analytics, and supply chain enhancements. The discussion underscores the shift toward smart factory initiatives and the future of manufacturing, with a focus on reshoring, nearshoring, and technology utilization.
IDTechEx Report on Quantum Technology: Nano-scale Physics for Massive Market Impact
04/30/2024 | PRNewswireThe quantum technology market leverages nano-scale physics to create revolutionary new devices for computing, sensing, and communications. Across the industry, quantum technology offers a paradigm shift in performance compared with incumbent solutions.
NASA’s Optical Comms Demo Transmits Data Over 140 Million Miles
04/30/2024 | NASA JPLNASA’s Deep Space Optical Communications experiment also interfaced with the Psyche spacecraft’s communication system for the first time, transmitting engineering data to Earth.
Real Time with… IPC APEX EXPO 2024: Insight into Summit Interconnect's Success
04/30/2024 | Real Time with...IPC APEX EXPOShane Whiteside, CEO of Summit Interconnect, discusses the company's recent recognition as one of the best PCB fabricators in the industry by receiving IPC's Peter Sarmanian award. Whiteside touches on the impact of changes in the marketplace, such as the Defense Production Act and presidential determination, on their growth. Whiteside also shares the company's focus on mechanical and data automation to enhance manufacturing processes and anticipates more automation and evolution in the industry.