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Worldwide spending on security-related hardware, software, and services is forecast to reach $133.7 billion in 2022, with managed services accounting for 50 per cent of the services segment.
According to IDC findings, China is expected to see the largest spending growth with a five-year compound annual growth rate (CAGR) of 26.6 per cent, followed by Malaysia at 21.1 per cent and Singapore at 18.2 per cent.
While the market continues to expand, the rate of growth is expected to slow delivering CAGR of 9.9 per cent overall, with security spending expected to be 45 per cent greater in 2022 than the $92.1 billion forecast for 2018.
"Privacy has grabbed the attention of boards of directors as regions look to implement privacy regulation and compliance standards similar to GDPR,” said Frank Dickson, research vice president at IDC. "Frankly, privacy is the new buzzword and the potential impact is very real.
"The result is that demand to comply with such standards will continue to buoy security spending for the foreseeable future."
Within the services segment, managed security services are expected to make up 50 per cent by 2022, while integration services and consulting services will be responsible for most of the remainder.
Overall, security-related services will be both the largest ($40.2 billion in 2018) and the fastest growing (11.9 per cent CAGR) category of worldwide security spending.
After the services segment, software is expected to be the second-largest category with spending expected to total $34.4 billion in 2018.
Specifically, throughout the forecast period, endpoint security software is expected to be the largest segment, followed by identity and access management software and security and vulnerability management software.
Security and vulnerability management software is expected to be the fastest growing software segment with a CAGR of 10.7 per cent.
On the other hand, hardware spending is expected to be led by unified threat management solutions, followed by firewall and content management.
Channel partners with an extensive reach into the banking sector look to benefit the most with this particular industry making the largest investment in security solutions overall, growing from $10.5 billion in 2018 to $16.0 billion in 2022.
The second and third largest industries, discrete manufacturing and federal/central government ($8.9 billion and $7.8 billion in 2018, respectively), will follow a similar pattern with services representing roughly half of each industry's total spending.
Partners with large telecommunications and government contracts also look to benefit significantly, with both growing 13.1 per cent CAGR and 12.3 per cent CAGR respectively.
The resource industry is also expected to see significant growth with a CAGR of 11.8 per cent.
"Security remains an investment priority in every industry as companies seek to protect themselves from large-scale cyber attacks and to meet expanding regulatory requirements," said Eileen Smith, program director at IDC.
"While security services are an important part of this investment strategy, companies are also investing in the infrastructure and applications needed to meet the challenges of a steadily evolving threat environment."
