Gartner has revealed it forecasts worldwide security spending to total $96.3 billion in 2018, an increase of 8 percent from 2017.
Organisations 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, said the research firm.
“Overall, a large portion of security spending is driven by an organisation’s reaction toward security breaches as more high profile cyberattacks and data breaches affect organisations worldwide,” said Ruggero Contu, research director at Gartner. “Cyberattacks such as WannaCry and NotPetya, and most recently the EquifaSIEMx 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 behaviour survey, which of the 53 percent of organisations that cited security risks as the number one driver for overall security spending, the highest percentage 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.
Gartner forecasts that by 2020, more than 60 percent of organisations will invest in multiple data security tools such as data loss prevention, encryption and data-centric audit and protections tools, up from approximately 35 percent 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 organisations to seek external help from security consultants, managed security service providers and outsourcers,” added Contu. “In 2018, spending on security outsourcing services will total $18.5 billion, an 11 percent increase from 2017. The IT outsourcing segment is the second-largest security spending segment after consulting.”
In addition, Gartner predicts that by 2019, total enterprise spending on security outsourcing services will be 75 percent of the spending on security software and hardware products, up from 63 percent in 2016.
“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,” concluded Contu.