• About
  • Subscribe
  • Contact
Wednesday, May 7, 2025
    Login
  • Management Leadership
    • Growth Strategies
    • Finance
    • Operations
    • Sales and Marketing
    • Careers
  • Technology
    • Infrastructure and Platforms
    • Business Applications and Databases
    • Big Data, Analytics and Intelligence
    • Security
  • Industry Verticals
    • Finance and Insurance
    • Manufacturing
    • Logistics and Transportation
    • Retail and Wholesale
    • Hospitality and Tourism
    • Government and Public Services
    • Utilities
    • Media and Telecommunications
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
No Result
View All Result
  • Management Leadership
    • Growth Strategies
    • Finance
    • Operations
    • Sales and Marketing
    • Careers
  • Technology
    • Infrastructure and Platforms
    • Business Applications and Databases
    • Big Data, Analytics and Intelligence
    • Security
  • Industry Verticals
    • Finance and Insurance
    • Manufacturing
    • Logistics and Transportation
    • Retail and Wholesale
    • Hospitality and Tourism
    • Government and Public Services
    • Utilities
    • Media and Telecommunications
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
No Result
View All Result
No Result
View All Result
Home Technology Security

Security budgets undeterred by prevailing economic volatility and uncertainty

FutureCIO Editors by FutureCIO Editors
March 15, 2023
Photo by Karolina Grabowska: https://www.pexels.com/photo/woman-holding-a-receipt-4959907/

Photo by Karolina Grabowska: https://www.pexels.com/photo/woman-holding-a-receipt-4959907/

IDC says spending on security solutions in Asia/Pacific (excluding Japan) 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 US$55 billion by 2026. Key drivers behind this growth are the rise in cyber-attacks, digital transformation initiatives, and continued hybrid workforce trends.

Christian Fam

"With looming economic uncertainty and geopolitical instability, it would be natural for Asia/Pacific organisations to turtle up on their security spending,” said Christian Fam, research manager for security services at IDC Asia/Pacific. He explained that IDC still sees increased security budgets and growth over the next few years to address the more prevalent sophisticated attacks and constantly metamorphosising threat landscape is constantly metamorphosising. He suggested that security and business leaders must work together continuously to justify their security spending.

An industry perspective

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 modernisation, 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.

Sharad Kotagi, market analyst for IT spending guides at IDC Asia/Pacific noted that as per the latest IDC survey, over 70% of the surveyed organisations 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,” he added.

Where spending is happening

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 organisations 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.

A country perspective

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 which 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.

Related:  Optimising edge strategies for post-COVID-19
Tags: IDCIT security budget
FutureCIO Editors

FutureCIO Editors

Strategic Insights for Chief Information Officers

FutureCIO is about enabling the CIO, his team, the leadership and the enterprise through shared expertise, know-how and experience - through a community of shared interests and goals. It is also about discovering unknown best practices that will help realize new business models.

Quick Links

  • Videos
  • Resources
  • Subscribe
  • Contact

Cxociety Media Brands

  • FutureIoT
  • FutureCFO
  • FutureCIO

Categories

  • Privacy Policy
  • Terms of Use
  • Cookie Policy

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Login to your account below

or

Not a member yet? Register here

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Management Leadership
    • Growth Strategies
    • Finance
    • Operations
    • Sales and Marketing
    • Careers
  • Technology
    • Infrastructure and Platforms
    • Business Applications and Databases
    • Big Data, Analytics and Intelligence
    • Security
  • Industry Verticals
    • Finance and Insurance
    • Manufacturing
    • Logistics and Transportation
    • Retail and Wholesale
    • Hospitality and Tourism
    • Government and Public Services
    • Utilities
    • Media and Telecommunications
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
Login

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Subscribe