Worldwide spending on enterprise security is expected to grow 8 percent to reach $96.3 billion in 2018, according to the newly launched forecast from Gartner, Inc. The world’s leading research and advisory company puts the trend of organizations' increasing investment in security down to an increasingly stringent regulatory environment, shifting consumer mindset, the evolution to a digital business strategy and awareness of emerging threats.
As a result of many arresting cyberattacks and data breaches occurred in the past 12 months, including WannaCry, NotPetya, and Equifax breach, organizations on a global scale are taking more active attitudes toward security breaches, resulting in an increased security spending.
This is consistent with findings of the security buying behavior survey released by Gartner in 2016. According to the survey report, 53 percent of organizations agreed that security risks had been the most important factor when considering the security spending.
It also explains why security testing, SIEM (short for "security information and event management") and IT outsourcing are most likely to be driving force of infrastructure protection and security services industies.
At the same time, the security spending is also driven by several other factors.
Both data privacy and regulatory compliance have been fuelling higher security spending over the past three years. Take the United States as an example, regulations such as the Health Insurance Portability and Accountability Act lay the foundation of the government should taking effort to protect the confidentiality and security of healthcare information. In other corners of the world, for instance, in Europe, the General Data Protection Regulation (GDPR) will take effect from May 25 2018 with the purpose of a unified and strengthened data protection for all the European Union members and their citizens; and in China, the Cybersecurity Law already came into effect in June 2016. All these regulations, in the other perspective, represent an increased spending, particularly on data security tools, SIEM and privileged access management.
Gartner also forecasts investment in encryption, audit and protections tools that focus on data security, plus data loss prevention alike multiple security tools will be up from current 35 percent to 60 percent by 2020 among all organization.
Lacks of skill, too complex technique and the threat situation will keep driving organizations to purchase or develop automated technologies or to outsource security missions. According to Gartner’s research director, skill sets are still at a premium as a result of being scarce. Organizations have to turn to external resources such as providers of managed security services, security consultants, etc. It is expected that investment in security outsourcing products and services will increase 11 percent to reach $18.5 billion in 2018.
Security outsourcing services spending will account for 75 percent of total investment in security software and hardware products by 2019, Gartner says.