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Summary

The Ovum Software Market Forecast for Security, released in July 2019, notes that the enterprise market for security software and services, excluding consumer security, is worth over $68bn this year. Facing an ever-expanding cyberthreat landscape, enterprise spend on security technology and services is forecast to continue rising, to almost $100bn by 2023. However, the 2019 Black Hat USA Attendee Survey shows that information security professionals do not rate most of their security tools as “effective”. Security budgets are not a bottomless pit and as such, discerning budget holders will focus security tool spend where there is the most confidence in effectiveness.

Reliability and value for money drive security spend

The Black Hat Survey notes that multifactor authentication, encryption, firewalls, endpoint security, third-party penetration testing, and security information and event management (SIEM) are the security tools in which security professionals have the most confidence.

Spend on encryption, for example, is focused on addressing the potential for a data breach, encrypting data so that it is not available “in the clear” even if an attacker should gain access to it. The confidence projected by Black Hat survey respondents means that there is definite opportunity for growth here, around 8.6% CAGR according to the Ovum forecast. Encryption is still only sparsely used by enterprises, mainly because it can be a complex, expensive, and resource-intensive activity when performed in house, yet clearly the professionals have confidence in it.

The Ovum forecast is broken down across a range of security technology areas. Security management, such as SIEM, is projected to have the largest compound annual growth rate of 9.8%, with the market currently estimated at $8.3bn, growing to $13.2bn by 2023. Network security is the area of highest spend, at $15.5bn in 2019.

About two-thirds of the Black Hat survey respondents believe it is somewhat likely, highly likely, or certain that they will have to respond to a major security breach in the next 12 months. However, fewer than half of the survey respondents feel as though they have sufficient budget to defend against current threats. This concern will fuel spending on the most reliable product categories for security technology, supplemented by people and process security controls to provide defense in depth and layered security capabilities. The Ovum Software Market Forecast for Security Technology firmly puts these reliable technology groups at the forefront of projected spend.

Appendix

Further reading

Software Market Forecasts: Security 2018–23, PT0178-000001 (July 2019)

Where Encryption Is Heading Now, INT003-000333 (March 2019)

Author

Maxine Holt, Research Director, Enterprise IT

maxine.holt@ovum.com

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