CHART: Worldwide security investments to grow 12.1% in 2023 to $219 billion

According to the data from International Data Corporation (IDC), worldwide spending on security solutions and services is forecast to be $219 billion in 2023, an increase of 12.1% compared to 2022.

Investments in hardware, software, and services related to cybersecurity are expected to reach nearly $300 billion in 2026, driven by the ongoing threat of cyberattacks, the demands of providing a secure hybrid work environment, and the need to meet data privacy and governance requirements.

According to the report, software investment is expected to take the lead in 2023, representing nearly half of all security spending this year. In the category, Endpoint Security will record the most investment, followed by Identity and Digital Trust software, Cybersecurity Analytics and others

Services will be the second largest technology group, led by the Managed Security Services category with $42 billion in spending expected this year. While Hardware spending in third place will be dominated by Network Security Appliances.

The software category will be the fastest growing of the three technology groups with a five-year compound annual growth rate of 13.7%, followed by Services at 11.0%.

The industries that will deliver the largest investments in security products and services in 2023 are Banking, Discrete Manufacturing, Professional Services, and Federal/Central Government.

Per region, the US will be the largest geographic region for security spending in 2023 while the second largest region will be Western Europe. Asia/Pacific (excluding Japan and China) and the People's Republic of China will be the next largest regions for security spending this year.

China is forecast to see the fastest spending growth over the 2021-2026 forecast period with a five-year CAGR of 18.8%.