IDC: data protection costs grow by 9-10% per year

IDC experts estimate that by the end of 2019, companies will spend $ 106.6 billion on data protection, which is 10.7% more than last year. Researchers also believe that data protection spending is increasing and will grow by 9-10% per year.

[dropcap]T[/dropcap]he forecast is given in the agency’s latest report on global investments in information security.

The study involved companies from 43 countries operating in 20 sectors of the economy. Analysts sought to understand the specifics of the tasks to ensure information security at the moment and determine their change in the next five years.

Frank Dickson

Frank Dickson

“The market for cybersecurity products continues to grow, growth that is renewed and reinvigorated by a C-level focus on Trust. Today’s new trust environment introduces new variables that go beyond the traditional ideas of security, risk and compliance, introducing concepts of privacy and ethical business operations. Given the complexity of implementing Trust, cybersecurity vendors are the clear beneficiaries”, — said Frank Dickson, program vice president, Cybersecurity Products at IDC.

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The largest expenses of organizations will be associated with security services. The business will spend more than $ 47 billion on incident tracking and management of cybersecurity centers, integration services, consulting, training and improving IT literacy of employees. According to IDC’s forecast, over a five-year period, these costs will grow annually by more than 11%.

In second place in terms of costs were investments in software to protect network infrastructures. Centralized management of information security processes, collecting data on potential threats, analytics, monitoring access to resources, detecting and preventing intrusions, protecting end users will cost companies almost $ 38 billion. Equipment costs, which are mainly used to ensure the security of network infrastructure, will exceed $ 21 billion this year.

The first place in the cost of information security systems is held by the United States with huge $ 46.2 billion. Next are China, Britain and Germany. Two-thirds of expenses in 2019 allocated by companies consisting of 500 or more employees. Analysts estimated the costs of small and medium-sized businesses at $ 27 billion. Private consumers will spend about $ 5.8 billion on security products and services.

As in the past year, banks, manufacturing enterprises and government organizations spend the most on safety. These areas account for up to 30% of global investment in information security, while a substantial part of the information security budget (over 35%) is allocated to information security management and integration services.

“Banks, industrial companies and government agencies work with the most valuable data and must comply with many regulatory requirements. They have to deal with the risks of data loss, counter the increasingly sophisticated criminal schemes and solve the problems of converting operations into digital format”,- IDC Research Manager Karen Massey explained.

Government organizations have also the fastest growing spending on data protection – according to IDC forecasts, they will annually increase the budget for information security by 12.5%. The top three in this category also included participants in the telecommunications industry (annual growth of 11.9%) and mining enterprises (11%).

[box]On average, the IS budget in the next five years will grow by 9.4% annually. By 2023, global security spending will be $ 151.2 billion per year – analysts have increased their last year’s forecast by $ 17.5 billion.[/box]

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Sophia Zimmerman

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