Security spending refers to the funds used by an organization for maintaining cybersecurity and protecting critical infrastructure and sensitive data from theft, leakage, or cyberattacks. With the rise in sophisticated cyber threats and growing dependence on digital systems, there has been an increased need for advanced security solutions across various verticals like government, BFSI, IT & telecom, healthcare, and manufacturing among others.
The global Security Spending Market is estimated to be valued at US$ 152.81 Bn 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 the growth of the security spending market is the rising frequency and sophistication of cyberattacks. Cybercriminals are resorting to more advanced techniques like ransomware, malware, phishing scams, and DDoS attacks to steal sensitive data for financial gains. This has compelled organizations to invest heavily in next-gen security solutions like AI-powered threat detection systems, cloud-based web security solutions, firewalls, and identity and access management solutions to protect their networks and ensure business continuity. Advanced technologies are enabling them to detect even zero-day attacks proactively and minimize financial and reputational losses arising from data breaches.
The global security spending market is segmented based on component, enterprise size, vertical and geography. Based on component, the security spending market is segmented into solutions and services. The solutions segment dominated the market in 2023 and is expected to continue its dominance during the forecast period. Growing demand for security analytics and security and vulnerability management solutions has led to the high adoption of solutions segment.
Based on enterprise size, the security spending market is segmented into large enterprises and SMEs. Large enterprises accounted for the largest market share in 2023 due to rising security concerns across various industries. However, the SMEs segment is expected to grow at a higher CAGR during the forecast period owing to the growing security threats and rising digitalization among SMEs.
The global security spending market is expected to witness high growth during the forecast period. North America dominated the security spending market in 2023 with a share of over 35%, primarily due to growing digital transformation across industries and increasing instances of cybercrimes in the region. However, Asia Pacific is expected to grow at the highest CAGR during the forecast period. Rapid digitalization of enterprises across industries such as BFSI, IT & telecom, and government in countries such as China, Japan, and India is fueling the growth of the security spending market in Asia Pacific.
Key players operating in the security spending market are Cisco Systems, Palo Alto Networks, IBM Security, Check Point Software Technologies, Symantec, Fortinet, McAfee, Trend Micro, CrowdStrike, Proofpoint, FireEye, Darktrace, Splunk, RSA Security, and Akamai Technologies. Majority of the security vendors are focusing on enhancing their offerings by adding advanced technologies such as artificial intelligence, IoT, and analytics capabilities to their existing security solutions. For instance, in 2022, Palo Alto Networks introduced Cortex XDR 2.0 with AI-powered capabilities to detect threats across endpoints, networks, cloud and third-party technologies.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it