Security spending to top $100 billion by 2020: Are we any cyber safer?

Enterprises are going to spend heavily on security hardware, software, and services as they race to avoid becoming the next big cyberattack victim, says IDC.

Arthur Coviello: Security risks are creating an existential crisis On the sidelines of the Structure Security conference in San Francisco, Arthur Coviello, a venture partner with Rally Ventures, talks about why we need to get ahead of security risks as the Internet of Things flourishes.

Revenue for the information security industry -- hardware, software, and services -- will top $100 billion in 2020 as enterprises spend heavily to fend off cyberattacks, according to IDC.

IDC is forecasting that global revenue for security technologies will grow from $73.7 billion in 2016 to $101.6 billion in 2020, or at a compound annual growth rate of 8.3 percent.

Special feature

Cyberwar and the Future of Cybersecurity

Today's security threats have expanded in scope and seriousness. There can now be millions -- or even billions -- of dollars at risk when information security isn't handled properly.

Read More

That growth rate is more than twice the forecasted IT spending over the next five years.

Funny how all that money isn't exactly making me feel any more cybersecure. After all, data breaches are an almost daily occurrence. Nevertheless, the security industry is blessed since no tech buyer would ever want to be accused of scrimping on protecting infrastructure.

IDC analyst Sean Pike noted that enterprises fear becoming the next cyberattack victim and boards of directors are demanding security budgets be used wisely. Indeed, our CXO 2017 spending planner noted that network security is the No. 2 priority for the year ahead with securing networks and data the No. 1 challenge.

Not surprisingly, banking is investing the most into security for 2016 with $8.6 billion, followed by discrete manufacturing, government, and process manufacturing. Those industries account for 37 percent of annual security spending. Healthcare will be the fastest growing area for security over the next five years with a compound annual growth rate of 10.3 percent.

By model, services will account for 45 percent of all security spending. Managed security services account for much of that spending. Software is the second largest spending area followed by hardware. Security analytics software will have a compound annual growth rate of 12.2 percent.

The US will be the largest security market in 2016, followed by Western Europe and Asia Pacific.

Here are some videos from security leaders.

Jay Leek, Blackstone CISO, on security automation Jay Leek, chief information security officer at Blackstone, says the private equity giant has automated much of its security operations as well as initial investigations. The move has enabled his human security analysts to be more productive and focus on more high-value work.
What the Secret Service can teach us about cybersecurity Nathaniel Gleicher, Head of Cybersecurity Strategy at Illumio and former Director for Cybersecurity Policy at the White House National Security Council, on how security in the physical world compares to security in the data center.
How the FBI crowd sources security FBI CISO Arlette Hart explains how the agency counts on its employees to spot internal security threats.