$96.3 billion Spend on CyberSecurity in 2018

Gartner, Inc. forecasts worldwide enterprise security spending to total $96.3 billion in 2018, an increase of 8 percent from 2017. Organizations 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.

More than 60 percent of organisations globally will invest in multiple data security tools by 2020, up from 35 percent today, it added.

“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 Equifax breach, have a direct effect on security spend because these types of attacks last up to three years,” he added.

Regulatory compliance and data privacy have been stimulating spending on security during the past three years, in the US and most recently in Europe around the General Data Protection Regulation (GDPR) coming into force on 28 May 2018, as well as in China with the Cybersecurity Law that came into effect in June 2016.

Skills shortages, technical complexity, and the threat landscape will continue to drive the move to automation and outsourcing.

Worldwide Security Spending by Segment, 2016-2018 (Millions of Current Dollars)

Segment

2016

2017

2018

Identity Access Management

3,911

4,279

4,695

Infrastructure Protection

15,156

16,217

17,467

Network Security Equipment

9,789

10,934

11,669

Security Services

48,796

53,065

57,719

Consumer Security Software

4,573

4,637

4,746

Total

82,225

89,133

96,296

Source: Gartner (December 2017)

“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,” said 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,” he added.

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.