Recalibrating Cybersecurity Spending Projections
How big and how fast will the cybersecurity market grow in five years? Inquiring minds want to know.
June 29, 2016
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While cybersecurity spending has grown by 35x over the last 13 years, most big analyst firms still expect decent but modest growth in the next five years. However, according to a new report from market intelligence firm Cybersecurity Ventures, their projections are likely selling the market short. The firm believes that spending will be much more robust than what firms like Gartner and IDC are predicting, due to a number of factors.
Cybersecurity Ventures estimates that spending on cybersecurity products and services will reach over $1 trillion during the five-year period from 2017 to 2021.
During that period, Cybersecurity Ventures projects a 12% to 15% year-over-year growth through 2021--above the typical 8% to 10% projected by other analysts.
Gartner projects the security market will experience a 7.8 percent compound annual growth rate through 2019. As things stood, Gartner estimated a total market size of $75 billion in 2015. If Gartner's projections were to stand through the next decade, extrapolating would put Gartner's five-year cumulative estimate for 2017 to 2021 at half of Cybersecurity Venture's projection, at just about $509 billion.
Similarly, cybersecurity services spending estimates frequently only take into account spending with value-added resellers, systems integrators and IT solutions providers. As the firm notes, enterprises are increasingly engaging CPAs and attorneys specializing solely in cyber consulting.
Further clouding the matter, says Cybersecurity Ventures, is the fact that most organizations put their security budgets into other cost centers. The analyst firm pointed to a stat from the recent SANS Institute IT Security Spending Survey that showed only 23% of enterprises track security budgets and costs as their own cost center.
While cybersecurity spending has grown by 35x over the last 13 years, most big analyst firms still expect decent but modest growth in the next five years. However, according to a new report from market intelligence firm Cybersecurity Ventures, their projections are likely selling the market short. The firm believes that spending will be much more robust than what firms like Gartner and IDC are predicting, due to a number of factors.
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