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Spending on security solutions and services in Asia/Pacific, excluding Japan is expected to grow at 14.0 per cent year on year in 2021, according to the latest (IDC) Worldwide Semiannual Security Spending Guide.
IDC expects investment in security-related products and services to grow at a rate of 14.1 per cent (CAGR) over the forecast period (2020-25) and reach $39 billion by 2025.
Accelerated digitalisation, cloud adoption, security transformation and increased number of cyber attacks are some of the key drivers of the security market in the region at the height of the pandemic.
Industry verticals such as banking, telecommunications, federal/central, and state/local government have spent the highest on IT security.
"Because critical and sensitive data is intrinsic to these industries, having a secured digital ecosystem is a priority," IDC said in its report.
Together, these industries will constitute over 50 per cent of the total security spending in the region.
The fastest growing industries in 2021 are state/local government (20 per cent) and utilities (15.5 per cent) – driven by Covid-led digitalisation of utility transmission and distribution networks apart from an increased focus on data security, compliance, and governance.
Services will remain the largest technology group, as per the report, accounting for over 45 per cent of the market share in 2021 and the fastest growing sub-market with a CAGR of 14.5 per cent during 2020-25.
Broken down by services category- Managed Security Services and Consulting Services are leading the segment, which accounts for more than 50 per cent of the security services spending.
"With more organisations adopting cloud-first strategy and digitally enabled business environment, their reliability on security partners to address security needs will also increase," the report said.
Security hardware
Security hardware will be the second largest technology group in the security market.
Network security including Unified Threat Management, IDP, VPN, and Firewall will continue to lead the segment. These technologies are essential for buyers relying on them for their daily work.
Security software will grow at 13.2 per cent over the forecast period. Endpoint security, Identity, and Digital Trust Software Solutions will continue to lead the security software market in 2021.
“The Covid-19 pandemic will further increase the multitude of security challenges. Organizations are rethinking the resiliency strategy, including cloud adoption, digitalization of business models, and workforce,” said Sharad Kotagi, Market Analyst at IDC IT Spending Guides, Customer Insights & Analysis.
“Thus, investments in digital trust programs (security, privacy, and compliance technologies) will be one of the top priorities of organizations in the region,” he added.
Large (500-1000 employees) and very large businesses (1000+ employees) will continue to account for two-thirds of all security-related spending in 2021 with expected growth of 13.4 per cent and 14.7 per cent CAGR respectively over the forecast period.
"This growth is driven by large workforce and the adoption of emerging technologies by large organisations," as per the report.
Medium (100-499 employees) and small businesses (10-99 employees) are expected to spend around $5 billion combined on security solutions in 2021.
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