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Security spending refers to the funds allocated by organizations towards ensuring the protection of digital assets and networks. It involves investments in various security solutions such as identity and access management, risk and compliance management, data security, endpoints, network security, cloud security, and others. These solutions encompass anti-virus, anti-malware, firewall, encryption, identity management, intrusion detection, vulnerability scanning, and more. With the digitization of economies and industries, huge amounts of sensitive data are processed and stored online on a daily basis. Organizations across various sectors are compelled to adopt sophisticated security measures to prevent threats like cyberattacks, data breaches, and network intrusions.
The global security spending market is estimated to be valued at US$ 155 billion in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the security spending market is the proliferation of connected devices and growing focus on IoT security. The number of devices connected to the internet including smartphones, consumer electronics, smart home appliances, and industrial IoT is growing exponentially. However, an increase in connected devices means a multiplied attack surface for cybercriminals. Therefore, organizations are allocating more budget to securing endpoints and monitoring device networks to prevent IoT-based attacks. Moreover, trends like work from home due to COVID-19 pandemic, cloud migration of workloads, and BYOD policies are fueling demand for advanced cloud, network, and endpoint security solutions. Additionally, the implementation of stringent data privacy regulations like GDPR is compelling businesses to ramp up security spending in order to achieve and maintain compliance.
Key players operating in the security spending market are Cisco, Microsoft, Intel, IBM and Honeywell. Cisco is a global leader in security with comprehensive portfolio of solutions across network, endpoint, applications and cloud security. Microsoft focuses majorly on cloud and identity security solutions. Intel provides hardware security solutions such as CPU level security and data centre security solutions. IBM leads in application security and managed security services. Honeywell offers physical security solutions along with cybersecurity services to enterprises. These players have been continuously innovating and investing in newer technologies to sustain their market share.
Porter’s Analysis
Threat of new entrants: The security spending market has moderate barriers for new entrants as it requires lot of capital investments in technology, infrastructure and skilled workforce which makes it challenging for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many solution providers however large organizations do bargain for better pricing and customized solutions.
Bargaining power of suppliers: The security vendors have moderate bargaining power as there are many component suppliers but large security vendors also have technological expertise and can develop some components internally.
Threat of new substitutes: There is low threat of new substitutes as security solutions continue to evolve with new technologies making existing solutions obsolete at times requiring upgrades.
Competitive rivalry: The market has high competitive rivalry with many global players competing on the basis of technology, pricing and services.
Regional analysis focused on North America, Asia Pacific and Europe illustrates that the North American region dominates more than 40% of the global security spending market share currently. Factors such as high awareness levels regarding threats, stringent regulatory compliance and large scale infrastructure have significantly contributed to its large market size. Asia Pacific region is expected to witness fastest growth during the forecast period owing to rapid digital transformation of economies, increasing cyber threats and infrastructure development taking place.
Key Takeaways
The global security spending market is expected to witness high growth. The global security spending market is estimated to be valued at US$ 155 billion in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
