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Security spending refers to the financial investments made by governments and organizations across various industries to safeguard critical infrastructure and sensitive data from security threats. It includes expenses incurred on security hardware including biometrics, video surveillance systems, access control systems and intrusion alarms. It also involves investments made on security software such as firewalls, endpoint security solutions, VPNs and data loss prevention systems. Further, security services spending includes managed security services and professional services for consulting, auditing and risk assessment.
The global security spending market is driven by the growing complexity of cyber threats and the increasing sophistication of cyber-attacks. Organizations across industries such as banking, infrastructure, healthcare and government are spending heavily on employing advanced security measures to tackle espionage, data breaches and financial crimes. Furthermore, with the rise of digital transformation and proliferation of IoT devices, the attack surface has expanded manifold, necessitating greater security precautions.
The global security spending Market is estimated to be valued at US$ 202.8 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 Dynamics:
One of the key drivers for the projected growth of security spending is the increasing instances of cybercrimes across the globe. Cybercriminals are resorting to more advanced techniques involving AI/ML, crypto mining and ransomware to compromise critical systems and steal sensitive data. This has enhanced the need for organizations to strengthen their security posture with next-gen technologies including AI for threat detection, behavioral analytics and encryption. Additionally, stringent data privacy regulations such as GDPR have mandated businesses to spend more on securing customer information, evaluate risks and report breaches on time. These drivers are encouraging corporations as well as government agencies to prioritize the allocation of budgets for bolstering cyber resilience.
Key players operating in the are Cisco, Microsoft, Oracle, Symantec, Check Point, IBM, fortinet etc. The market is highly competitive with presence of both international and local players. Increased investments from governments and enterprises on cyber security will drive market growth during forecast period. With rapidly evolving threat landscape, demand for advanced solutions like UEBA, SOAR, Deception technology and managed security services is expected to rise significantly.
Segment Analysis
The global security spending market is dominated by the IT security segment which holds more than 30% share of the total market. IT security is focused on protecting networks, programs and data from digital attacks, damage or unauthorized access. Within IT security, network security sub-segment has the highest share as it protects critical infrastructure like servers, databases from malware and cyber attacks. The dominance is due to rise in number of data breaches and cyber attacks targeting critical infrastructure in recent years.
PEST Analysis
Political: Governments across the world are formulating new cyber security laws and regulations to improve data privacy and protect critical infrastructure from cyber attacks. Some countries have also increased their defense budgets to tackle terrorism and enhance national security.
Economic: The global economic slowdown due to COVID-19 pandemic has pushed many organizations to focus on cost optimization. However, security spending remains unaffected as organizations want to ensure business continuity and prevent financial losses from cyber crimes.
Social: With rising online transactions and digitalization of services, awareness around data privacy and security has increased among public. People are more concerned about protection of their personal and financial data.
Technological: Emergence of new technologies like IoT, AI and cloud computing has expanded the attack surface for hackers. It has also increased complexity of digital ecosystems which needs specialized tools and skills to secure effectively. This is driving demand for advanced security solutions.
Key Takeaways
The global security spending markett size was valued at USD 202 billion in 2022 and is expected to grow at a CAGR of 7.8% during the forecast period.
North America region dominated the market with over 35% share in 2022 due to stringent data privacy regulations and high technology adoption in countries like US and Canada.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
