The rise in cyber-attacks, digital transformation initiatives and remote working trends are pushing spending on security hardware, services and software in Asia/Pacific, excluding Japan as per new IDC findings. IDC expects the spending to reach $36 billion in 2023, an increase of 16.7% over the previous year. It further states that security investments will remain resilient in 2023 and the forecasted years (2021–2026) on the back of uncertain global economic conditions. IDC expects spending on security-related products and services to grow at a five-year CAGR of 15.4% over the forecast period to reach $55 billion by 2026.
"With looming economic uncertainty and geopolitical instability, it would be natural for Asia/Pacific organizations to turtle-up on their security spending,” says Christian Fam, research manager, security services, IDC Asia/Pacific.
IDC’s latest Worldwide Semiannual Security Spending Guide finds that the top spenders on security solutions in 2023 include telecommunications; banking, financial services and insurance (BFSI); government; and manufacturing sectors. Open banking, digital payments, e-governance, IT infrastructure modernization and changing compliance regulations continue to trigger investments in these industries, accounting for over 50% of the total security spending in the region.
As expected, security services will dominate the security markets, accounting for nearly half of the security spending throughout the forecast period, growing at a 14.7% five-year CAGR. Managed services will continue to be the largest category in the security services market, delivering around 40% of the spending throughout the forecast, followed by consulting services and integration services.
Security services will be followed by security software, led by endpoint security, information and data security software, and identity and digital trust software, which will account for more than half of the overall security software spend in 2023. Security software will be followed by security hardware spending and be dominated by network security needs, including firewalls, intrusion detection and prevention, unified threat management and virtual private networks.
China continues to be at the forefront of security investments in the region, accounting for more than 40% of total Asia/Pacific security spending in 2023, with a five-year CAGR of 18.8% during the forecast period. The next two countries that follow China in terms of security spending are Australia and India. Together, these countries will account for 25% of the overall Asia/Pacific security spending in 2023.
The Worldwide Security Spending Guide quantifies the global revenue opportunity for both core and next-generation security purchases with detailed forecast data for security spending by 20 industries across nine regions, 53 countries and five company size bands.