Gartner Details Worldwide Security Service Spending by Market and Subsegment
The market for IT-related security services is set for healthy growth over the next few years, with the managed service segment taking the spot as the fastest-growing segment.
According to recent market forecasts from Gartner, spending on security services should reach $35.1 billion worldwide in 2011, up from $31.1 billion in 2010. Short-term market forecasts from the IT research and advisory firm put total spending at $38.3 billion in 2012, and more than $49.1 billion in 2015.
The IT management segment of security services is forecast to grow from $8 billion to $14.9 billion in 2015, almost doubling the size of the security services market for managed security using the outsourced management model. While the managed service segment is experiencing the fastest growth, the Development and Integration segment still represents the largest portion of IT security related spending, estimated by Gartner to be $11.3 billion in 2011.
“The security services market has changed rapidly over the last several years with a growing number of security technology providers offering their technologies as services, and customers often preferring services to save on operational costs while they consolidate resources to more strategic security related initiatives,” said Lawrence Pingree, research director at Gartner.
“This is largely driven by organizations looking at managed security services (MSS) providers as a way to maximize resources and lower ongoing operating expenditures on security,” Pingree added. “Demand in the small and medium business segments is also high as businesses continue looking to external parties to provide them with additional security expertise and resources that they may be lacking organizationally to help them make the right security decisions or provide security functions externally.”
Not surprising, North America is the largest market for security services spending, with revenue forecast to exceed $14.6 billion in 2012, and $19 billion in 2015. In Western Europe, spending is expected to reach $11.9 billion in 2012 and total $14.4 billion in 2015. Security services spending in Japan is projected to grow from $5.1 billion in 2012 to $5.9 billion in 2015. In Asia/Pacific, spending will total $4.7 billion in 2012 and total $7 billion in 2015.
“It is still very advantageous for smaller emerging vendors to maintain significant focus on North America, where there is a larger number of dollars at stake, and there is still positive growth,” Pingree said. “We are encouraging these vendors to continue to invest in strategies to stay relevant in other emerging high growth markets as well. For the larger, more-established security services providers that already have an extensive North American presence, it may make the most sense to focus efforts on regions with higher growth rates and less overall services market revenue penetration.”
The full report, including detailed country forecasts for security services for major regions is available for $1495 from Gartner.
In a separate report, Gartner forecasted that overall global enterprise IT spending is projected to total $2.7 trillion in 2012, a 3.9 percent increase from 2011 spending of $2.6 trillion.