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.
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.