Global spending on security and risk management is projected to reach $215 billion in 2024 [1] [2] [3] [4], representing a 14.3% increase from the previous year. This growth is driven by factors such as the adoption of cloud technology, the rise of hybrid workforces, the use of generative AI, and the evolving regulatory environment [1] [3].
Description
According to a forecast from Gartner [1] [3], spending on data privacy and cloud security is expected to experience the highest growth rates [1] [3], with each segment increasing over 24% year-over-year [1]. This demand is fueled by privacy regulations and the growing popularity of public cloud services.
Security services [1] [2] [3] [4] [5] [6], including consulting [1] [4] [6], IT outsourcing [1] [4], implementation [1] [4], and hardware support [1] [4], are forecasted to account for 42% of total security and risk management spending in 2024 [3]. Gartner predicts that this segment will grow by 11% to reach $90 billion. Additionally, organizations are increasing their investments in cybersecurity in response to regulatory requirements and the escalating cyber risk [4]. A Moody’s survey highlights that cybersecurity spending levels have risen by 70% from 2019 to 2023 [2], prompting organizations to allocate a larger share of their technology budgets to cybersecurity [2] [4]. In 2023, 8% of technology budgets were allocated to cybersecurity, which is a 5% increase since 2019.
Furthermore, cybersecurity services spending is expected to accelerate in 2024 [5], surpassing previous expectations for 2023 [5]. Gartner forecasts a 10.1% growth in spending on security services in 2023 [5], with a projected 11.3% growth in 2024 [5]. This increase is driven by intensifying cyberthreats and the growing priority of cybersecurity for organizations [5]. The largest segment within security and risk management is security services [5], with a projected spending of $80.8 billion in 2024 [5]. Gartner’s updated projections indicate stronger-than-expected growth this year and a slight acceleration in the growth rate for next year [5].
However, organizations face challenges in the realm of cybersecurity, including the shortage of cybersecurity talent and the risks posed by the emergence of generative AI. Worldwide spending on information security and risk management technology and services is projected to grow by 12.4% in 2021 [6], reaching $150.4 billion [1] [2] [3] [4] [6], according to Gartner [1] [3] [4] [6]. Cybersecurity is the top priority for new spending [6], with 61% of surveyed CIOs planning to increase investment in this area [6]. Security services [1] [2] [3] [4] [5] [6], including consulting and outsourced services [6], account for the largest category of spending [6], while cloud security [1] [3] [6], particularly cloud access security brokers [6], is the fastest-growing market segment [6]. Integrated risk management technology is also experiencing strong double-digit growth [6].
Conclusion
The projected increase in global spending on security and risk management highlights the growing importance of cybersecurity in today’s digital landscape. Organizations are investing more in cybersecurity to address regulatory requirements and mitigate the escalating cyber risk. However, challenges such as the shortage of cybersecurity talent and the risks associated with generative AI need to be addressed. As cyberthreats continue to intensify, it is crucial for organizations to prioritize cybersecurity and allocate resources accordingly. The strong growth in spending on security services and the rapid expansion of the cloud security market segment indicate the increasing focus on protecting data and systems. Integrated risk management technology also plays a vital role in managing and mitigating risks. Looking ahead, it is expected that cybersecurity spending will continue to rise, driven by the evolving threat landscape and the need for robust security measures.
References
[1] https://www.darkreading.com/cloud/gartner-forecasts-global-security-and-risk-management-spending-to-grow-14-in-2024
[2] https://www.phoneworld.com.pk/securing-the-future-gartners-cybersecurity-investment-insights-for-2024/
[3] https://finchannel.com/gartner-forecasts-global-security-and-risk-management-spending-to-grow-14-in-2024/117191/tech-2/2023/10/
[4] https://www.cybersecuritydive.com/news/cyber-spending-gartner-moodys/695343/
[5] https://www.crn.com/news/security/gartner-spending-on-cybersecurity-services-is-outpacing-expectations-in-2023
[6] https://www.gartner.com/en/newsroom/press-releases/2021-05-17-gartner-forecasts-worldwide-security-and-risk-managem
