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Security has become an important issue across industries as cyber threats continue to evolve rapidly. Strong security systems and solutions have now become imperative to protect critical infrastructure and sensitive data from cybercrime, hacks and leaks. Security spending includes investments made by organizations across industry verticals like government, IT & telecom, BFSI, healthcare, and others to safeguard their digital assets and networks. As organizations migrate more workloads and services to hybrid cloud environments, their security requirements have increased multifold. This necessitates ongoing spending to purchase adequate security technologies and services that deliver advanced threat protection, visibility and control across complex IT ecosystems.
The security spending market encompasses products and services across categories such as identity and access management, risk and compliance management, data security, endpoint security, network security, cloud security, and more. These solutions provide capabilities like threat detection and response, vulnerability management, encryption, web and email security which are core to fending off malicious attacks. Adoption of new generation security architectures involving AI/ML, IoT and analytics is also gathering pace.
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 in the security spending market is the rise of Zero Trust Architecture. With hybrid work becoming the new normal, organizations are reviewing their legacy network security models and moving towards a zero-trust approach that does away with the concept of trusted or untrusted networks. Zero trust requires strict identity-based authentication for every user and device trying to access resources. It leverages technologies like SASE (Secure Access Service Edge) that converges networking and security functions. This trend is expected to drive more investments in advanced identity and access management solutions, SD-WAN equipment as well as cloud-delivered security-as-a-service offerings from MSSPs.
Porter’s Analysis
Threat of new entrants: The security spending market has moderate threat from new entrants as infrastructure security demands high initial investments and requires strong expertise. However, emergence of cloud-based security solutions has lowered the entry barriers to some extent.
Bargaining power of buyers: The bargaining power of buyers is moderate to high as there are many vendors providing similar security solutions. Buyers can negotiate on price and demand additional features from vendors to switch.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate as there are many software and component suppliers for security solutions. Vendors can switch to alternate suppliers if one increases prices.
Threat of new substitutes: The threat of substitutes is low as there are limited product substitutes that can provide similar security and compliance for enterprises. Emerging technologies may propose some substitute threats in long run.
Competitive rivalry: The competitive rivalry is high in the market with presence of global and regional players. Players compete based on product performance, pricing, features and services to gain market share.
Key Takeaways
The global Security Spending market is expected to witness high growth over the forecast period. North America currently dominates the market due to high spending by government and enterprises on cybersecurity solutions. Regulatory mandates for data protection and critical infrastructure security also drive high adoption in the region.
Europe follows North America in security spending and is anticipated to grow at moderate rate during 2023-2030 supported by increasing sophisticated cyber-crimes and rising encryption adoption across domains. Asia Pacific is projected to emerge as the fastest growing market led by rapid digitalization and government initiatives towards cybersecurity preparedness in major countries like China and India.
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, Akamai Technologies. These players are focusing on developing advanced solutions and forming strategic partnerships to strengthen presence and gain market share.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
