Worldwide spending on information security products and services will reach $US81.6 billion in 2016, an increase of 7.9 percent over 2015.
According to the latest forecast from Gartner, consulting and IT outsourcing are currently the largest categories of spending on information security.
Until the end of 2020, the highest growth is expected to come from security testing, IT outsourcing and data loss prevention (DLP).
Preventive security will continue to show strong growth, as many security practitioners continue to have a buying preference for preventive measures.
However, solutions such as security information and event management (SIEM) and secure web gateways (SWGs) are evolving to support detection-and-response approaches.
Consequently, Gartner expects the SWG market will maintain its growth of 5 to 10 percent through 2020 as organisations focus on detection and response.
“Organisations are increasingly focusing on detection and response, because taking a preventive approach has not been successful in blocking malicious attacks,” Gartner senior research analyst, Elizabeth Kim, said.
“We strongly advise businesses to balance their spending to include both.”
Kim said that security spending will become increasingly service-driven as organisations continue to face staffing and talent shortages.
Managed detection and response (MDR) is emerging, with demand coming from organisations struggling to deploy, manage and use an effective combination of expertise and tools to detect threats, and then bring their environment back to a known good state.
“This is particularly true for targeted advanced threats and insider threats,” Kim added.
“With more MDR providers emerging targeting the mid-market, we foresee these services being an additional driver for security spending for both large and smaller organisations.”
According to Gartner, spending in security markets such as consumer security software, secure email gateways (SEGs) and endpoint protection platforms (EPPs) continues to show constrained growth due to commoditisation.
Other assumptions in the information security market behind Gartner's latest forecast include that the average selling price for firewalls is expected to increase by at least 2 or 3 percent year over year until the end of 2018.
“This is driven by the market benefiting from higher demand for high-end equipment among cloud providers and other service providers, due to larger bandwidth needs and an increasing number of devices,” Kim added.
“While vendor competition continues to put pressure on pricing, enterprises, service providers and web-scale organisations are moving toward deploying bigger and more expensive firewalls.”
As a result, the deployment of large firewalls by cloud service providers will remain an important source of revenue growth for vendors.”
By 2018, Kim said 90 percent of organisations will also implement at least one form of integrated DLP, up from 50 percent today.
“Organisations have been deploying DLP to address regulatory compliance, intellectual property (IP) protection and data visibility and monitoring,” Kim added.
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