15 Mar 2023
Asia/Pacific* Security Spending to Grow 16.7% in 2023 With Government Taking the Lead, Says IDC
IDC Predicts Security Spending in Asia/Pacific* to Reach USD 55 Billion by 2026
SINGAPORE, March 15, 2023 – According to IDC’s latest Worldwide Semiannual Security Spending Guide, spending on security hardware, services and software in Asia/Pacific* is expected to reach USD 36 billion in 2023, an increase of 16.7% over the previous year. Security investments will remain resilient in 2023 and the forecasted years despite the economic slowdown and uncertainty risks. IDC expects spending on security-related products and services to grow at a five-year CAGR of 15.4% over the forecast period (2021-2026) and reach USD 55 billion by 2026. Key drivers behind this growth are rise in cyber-attacks, digital transformation initiatives, and continued hybrid workforce trends.
"With looming economic uncertainty and geopolitical instability, it would be natural for Asia/Pacific organizations to turtle-up on their security spending. Yet, IDC still sees increased security budgets and growth over the next few years to address the more prevalent sophisticated attacks and constantly metamorphosizing threat landscape. Security and business leaders must work together to continuously justify their security spending,” said Christian Fam, Research Manager, Security Services, IDC Asia/Pacific.
From the perspective of industry end users, banking, financial services, and insurances (BFSI), telecommunications, government, and manufacturing continue to be among the top spenders on security solutions in 2023. Technology initiatives such as open banking, digital payments, e-governance, IT infrastructure modernization, and changing compliance regulations continue to trigger investments in these industries. Together, these industries will account for more than 50% of the total security spending in the region. Industries seeing the fastest growth in 2023 are state/local government, utilities, and telecommunications.
“As per the latest IDC survey, over 70% of the surveyed organizations have experienced cyberattacks in the last 12 months, out of which, 55% have paid ransom to avert operational disruptions and financial losses. Businesses in the region are increasing investments in tools and solutions to achieve cyber resiliency against cyber threats,” said Sharad Kotagi, Market Analyst, IT Spending Guides, IDC Asia/Pacific.
The need for security capabilities to support complex IT environments, including network, cloud, and endpoints, continues to see high demand and shortage of skilled cybersecurity resources, creating opportunities for vendors and channel partners to provide security service options. 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 the security software, led by endpoint security, information and data security software, and identity and digital trust software, accounting for more than half of the overall security software spend in 2023. Security software will be followed by security hardware spending, dominated by network security needs – including firewalls, intrusion detection and prevention, unified threat management, and virtual private networks. These technologies help organizations protect their devices, network, and applications, hence, the demand has remained strong and in line with the need to secure a hybrid workforce. The region continues to see a rise in highly sophisticated and targeted cyberattacks which has increased awareness to adopt a holistic cybersecurity framework to achieve cyber resiliency. China continues to be at the forefront in security investments in the region, accounting 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 which follow China in terms of security spending are Australia and India. Together, these countries will account 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 and 53 countries and 5 company size bands. This new release of IDC’s Worldwide Security Spending Guide brings some extensive taxonomy changes, aligning our market definitions with IDC's Worldwide Security Products Taxonomy, 2022 (IDC #US48813222, February 2022), and market size across segments with IDC’s Security Products Tracker. New markets — such as Governance, Risk and Compliance, Zero Trust Edge, or Secure Web Gateway — are now published separately, and several markets include expanded and net new coverage.
*Asia/Pacific excluding Japan
About IDC Spending Guides
IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
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Endpoint security, Global IT and economic markets, Network security, Security software
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