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IT security spending to exceed $30bn by 2017

Information Technology companies will spend more than $30 billion [£19.5 billion] on security by 2017 according to figures released by research firm Canalys.

Figures show that spending will grow at a compound annual rate of seven per cent and is less affected by tough economic conditions than other parts of the IT sector. Medium-sized businesses will be the most significant spenders with the same seven per cent compound annual rate taking spending to $8.5 billion [£5.5 billion] in 2017.

“Medium-sized businesses are prioritizing more of their IT budgets and resources to ensure their businesses are compliant with various data protection regulations. They also want to give their customers reassurance about the services they provide,” said Nushin Vaiani, an analyst at Canalys.

Medium-sized business spending is split up into ‘Network security’, ‘Content security’, and ‘Security management’ by Canalys. The largest rise of those three over the five years is 7.7 per cent on network security with a similar 7.6 per cent rise in security management spending. Content security spending is projected to rise by a smaller 6.7 per cent.

Canalys’ figures also cover the forecast rises from 2012 to 2013, which are split up according to geographical zones. The Asia Pacific region should see a rise of nine per cent with growth in China, India and Japan a particular driver of spending. North America will grow at a rate of five per cent for the next five years with Latin America, meanwhile, enjoying a projected growth rate of 15 per cent in 2013.

The EMEA market, however, was the slowest in 2012 with an increase of just three per cent and, as Vaiani explains, that will increase by some margin in 2013.

“The sluggish growth was primarily down to the poor performance of the European market, which was hindered by economic uncertainty. We expect an increase in investment as businesses of all sizes begin to gear up for the impending changes to the EU data protection directive. This will work to boost overall growth in the EMEA market to eight per cent for full-year 2013,” Vaiani said.

Companies are increasingly tightening budgets elsewhere to cope with security demands and it’s no wonder considering some of the figures showing dramatic rises in DDoS attacks in the first half of 2013.

Image Credit: Flickr (Ministry of Defence)