Global Cyber Security Spend To Grow Only 2.8%
Worldwide IT spending is projected to total $3.4 trillion in 2020, a decline of 8% from 2019, according to the latest forecast by the industry analysts at Gartner. The virus and effects of the global economic recession are causing CIOs to prioritise spending on technology and services that are deemed “mission-critical” over initiatives aimed at growth or transformation.
Gartner last year projected that Worldwide IT spending would total $3.7 trillion in 2019, an increase of 0.4% from 2018. This was the lowest forecast growth in 2019. They also thought that global IT spending was expected to rebound in 2020 with a significant growth forecast primarily due to enterprise software spending.
It has become apparent that worldwide spending on information security and risk management technology and services will grow just 2.4% this year, well below the growth rate it had estimated just a few months ago.
The Covid-19 pandemic had disrupted supply chains and production across the world, forcing organisations, whether large or small, to limit their spending to survive until the crisis is over and normality returns.
The significant impact of the pandemic on business revenues across the world has impacted cyber security spending as well. Gartner think a reduction of growth in both security software and services will take place during 2020 but at the same time, the pandemic is driving short-term demand in areas such as cloud adoption, remote worker technologies and cost-saving measures. While worldwide spending on information security and risk management technology and services will not contract, the growth in sectoral spending will be incremental at best with the overall spending rising from $120b in 2019 to nearly 124b in 2020. In particular:-
- Spending on infrastructure protection will increase from $1.65 billion to $1.74 billion.
- Spending on security services will increase from $61.9 billion to $64.2 billion.
- Spending on cloud security will rise from $439 million to $545 million.
- Spending on identity access management solutions will increase from $9.8 billion to $10.4 billion.
- Spending on network security equipment is expected to contract from $13.3 billion in 2019 to $11.6 billion.
Cloud-based delivery models have reached well above 50% of the deployments in markets such as secure email and web gateways and the contining trend towards a cloud-based delivery model makes the security market more resilient to recession with an average penetration of 12% of overall security deployments cloud-based in 2019.
Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of sales by thousands of vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.
Gartner: TEISS: Professional Security:
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