Double-Digit Revenue Growth for Security Products in 2023 is Forecast to Continue Through 2028, According to IDC
June 27 2024 - 1:19PM
Business Wire
Worldwide revenue for security products totaled $106.8 billion
in 2023, an increase of 15.6% compared to 2022. And revenue growth
was strong across the board with all six product categories
registering double-digit year-over-year growth, according to new
data from the International Data Corporation (IDC) Worldwide
Semiannual Security Products Tracker.
"Security is a board level conversation; cyber risk is business
risk. Thus, security spending remains strong and carries with it a
certain level of immunity from the negative effects of economic
uncertainty. In fact, the emergence of GenAI and other AI
technologies are contributing to increased budgets for security
offerings in 2024," said Frank Dickson, group vice president,
Security & Trust at IDC. "GenAI brings pressure to increase
cybersecurity budgets on two fronts: to secure an organization's
development and use of GenAI applications and to use GenAI
assistants to uplevel security analysts, in both efficacy and
efficiency."
The largest technology category in 2023 was Network Security
with worldwide revenues totaling $27.4 billion. Nearly three
quarters of this revenue came from four secondary markets:
Firewall/Unified Threat Management (UTM); Secure Web Gateway; Web
Application and API Protection; and Virtual Private Network
(VPN)/Zero Trust Network Access (ZTNA). The Network Security
category includes five other secondary markets: Segmentation;
Infrastructure Protection; Intrusion Detection Systems/Intrusion
Prevention Systems (IDS/IPS); Cloud Access Security Broker; and
Network Sandboxing.
The next largest technology categories were Endpoint Security
and Security Analytics with 2023 revenues of $21.6 billion and
$20.0 billion respectively. Revenue in the Endpoint Security
segment was divided between the Modern Endpoint and Consumer
Digital Life Protection secondary markets. The Vulnerability
Management and Security Information and Event Management (SIEM)
secondary markets accounted for nearly two thirds of the Security
Analytics revenue, with the remainder coming from the Network
Security Analytics, Orchestration and Automation Tools, and
Cloud-native XD markets.
The remaining technology categories – Identity and Access
Management, Information and Data Security, and Cloud Native
Application Protection Platforms (CNAPP) – delivered $37.8 billion
in combined revenue for 2023.
The technology category with the greatest year-over-year revenue
growth in 2023 was Cloud Native Application Protection Platforms at
31.5%, followed by Identity and Access Management at 21.4%. The
other categories all saw annual revenue growth in the mid- to upper
teens.
In terms of deployment, public cloud continued to capture a
growing share of security product spending. In 2023, nearly two
thirds of all security products revenue came from public cloud
deployments with the remainder coming from on-premise deployments
and hardware appliances.
The top five companies in the security products market in 2023
were Microsoft, Palo Alto Networks, Cisco, Gen Digital, and
Fortinet with combined revenue of $28.8 billion or nearly 27% of
the overall market.
A graphic illustrating the worldwide market share of the top 5
security product companies in 2023 is available by viewing this
press release on IDC.com.
IDC forecasts the global security product market will continue
to see double-digit growth over the next five years with total
revenue reaching $200 billion in 2028. The fastest growing product
categories over the 2024-2028 forecast period will be Cloud Native
Application Protection Platforms, Security Analytics, Identity and
Access Management, and Information and Data Security, all with
compound annual growth rates (CAGRs) in the teens or higher.
IDC's Worldwide Semiannual Security Products Tracker provides
total market size and vendor shares for 25 security markets,
including cloud-native application protection platform, information
and data security, endpoint security, identity and access, network
security, and security analytics. The Tracker also includes annual
five-year market forecasts for all 25 security markets as well as
at the worldwide, regional, and country levels.
Click here to learn about IDC's full suite of data products and
how you can leverage them to grow your business.
About IDC International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services,
and events for the information technology, telecommunications, and
consumer technology markets. With more than 1,300 analysts
worldwide, IDC offers global, regional, and local expertise on
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opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the
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wholly owned subsidiary of International Data Group (IDG), the
world's leading tech media, data, and marketing services company.
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version on businesswire.com: https://www.businesswire.com/news/home/20240627008008/en/
Michael Shirer 508-935-4200 press@idc.com