Market Overview

Gartner Forecasts Worldwide Information Security Spending to Exceed $124 Billion in 2019

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Detection, Response and Privacy Driving Demand for Security
Products and Services

Worldwide spending on information security products and services will
reach more than $114 billion in 2018, an increase of 12.4 percent from
last year, according to the latest forecast from Gartner, Inc. In 2019,
the market is forecast to grow 8.7 percent to $124 billion.

"Security leaders are striving to help their organizations securely use
technology platforms to become more competitive and drive growth for the
business," said Siddharth
Deshpande
, research director at Gartner. "Persisting
skills shortages
and regulatory changes like the EU's Global
Data Protection Regulation
(GDPR) are driving continued growth in
the security services market."

A 2017 Gartner survey* revealed that the top three drivers for security
spending are (1) security risks; (2) business needs; and (3) industry
changes. Privacy concerns are also becoming a key factor. Gartner
believes privacy concerns will drive at least 10 percent of market
demand for security services through 2019 and will impact a variety of
segments, such as identity
and access management
(IAM), identity
governance and administration
(IGA) and data
loss prevention
(DLP).

Mr. Deshpande said highly publicized data breaches, like the recent
attack on SingHealth
that compromised the personal health records of
1.5 million patients in Singapore, reinforce the need to view sensitive
data and IT systems as critical infrastructure.

"Security and risk management has to be a critical part of any digital
business initiative," he said.

An increased focus on building
detection and response capabilities
, privacy regulations such as
GDPR, and the need to address digital
business risks
are the main drivers for global security spending
through 2019 (see Table 1).

         
Table 1
Worldwide Security Spending by Segment, 2017-2019 (Millions of
U.S. Dollars)**
 
Market Segment       2017   2018   2019
Application Security 2,434 2,742 3,003
Cloud Security 185 304 459
Data Security 2,563 3,063 3,524
Identity Access Management 8,823 9,768 10,578
Infrastructure Protection 12,583 14,106 15,337
Integrated Risk Management 3,949 4,347 4,712
Network Security Equipment 10,911 12,427 13,321
Other Information Security Software 1,832 2,079 2,285
Security Services 52,315 58,920 64,237
Consumer Security Software       5,948   6,395   6,661
Total       101,544   114,152   124,116
Source: Gartner (August 2018)
 

Gartner has identified key trends affecting information security
spending in 2018-2019, including:

At least 30 percent of organizations will spend on GDPR-related
consulting and implementation services through 2019.

Organizations are continuing their journey toward compliance with the
GDPR that has been in effect since 25 May 2018. Implementing, assessing
and auditing the business processes related to the GDPR are expected to
be the core focus of security service spending for EU-based
organizations, and for those whose customers and employees reside there.

Risk management and privacy concerns within digital transformation
initiatives will drive additional security service spending through 2020
for more than 40 percent of organizations.

Consulting and implementation service providers have retooled their
service offerings over the past several years to support customers on
their digital
transformation journey
. Security is a key factor in the uptake of
that transformation process for regulated data, critical operations and
intellectual property protection spanning public cloud, SaaS and the use
of Internet of Things (IoT) devices.

Services (subscription and managed) will represent at least 50
percent of security software delivery by 2020.

Security as a service is on the way to surpassing on-premises
deployments, and hybrid deployments are enticing buyers. A large portion
of respondents to Gartner's security buying behavior survey said they
plan to deploy specific security technologies, such as security
information and event management
(SIEM), in a hybrid deployment
model in the next two years. Managed services represented roughly 24
percent of deployments, on average.

"On-premises deployments are still the most popular, but cloud-delivered
security is becoming the preferred delivery model for a number of
technologies," said Mr. Deshpande.

Gartner clients can learn more in "Forecast:
Information Security, Worldwide, 2016-2022, 2Q18 Update
."

Editors' Notes

* In September and October 2017, Gartner conducted a survey to gain
insights about current and planned security spending. A total of 480
respondents participated in the survey, from eight countries: Australia,
Canada, France, Germany, India, Singapore, the U.K. and the U.S.

** Effective July 2018, Gartner added segments to the security software
forecast and transitioned to reporting end-user spending. New segments
were added to the forecast scope, including integrated risk management
software, tokenization, threat intelligence, vulnerability assessment
and others. This broadened scope and revised methodology mean this
forecast cannot be directly compared to previous Gartner forecasts.

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