New research from IDC shows that managed services will make up the largest and fastest growing part of the security market over the next six months. The market growth can be attributed to increased customer demand for protection as more workers have shifted to a remote model during the COVID-19 pandemic.
Lockdown measures have lead to an increase in cyberthreats and crime, fueling demand for managed security solutions. IDC predicts investment in security services is expected to rise by a 10.5-percent-CAGR over the next five years, with managed services set to grow by 13.6 percent.
“While Covid-19 has had a negative impact on many ICT technologies, security services have witnessed increased engagements, especially in outsourcing services such as managed security services (MSS) and managed detection and response (MDR)," said Christina Richmond, program vice president of security services at IDC. "Security services will see strong demand throughout the forecast period.”
Software comprises the second largest segment of the overall security market, behind endpoint security and security analytics, intelligence, response and orchestration software. Richmond said hardware spending is expected to be fueled by increased network security needs. These include firewalls, intrusion detection and prevention, VPNs and unified threat management.
IDC also predicts worldwide spending on security products and services will grow steadily this year. The research firm estimates investments in security-related hardware, software and services will increase six percent from 2019, reaching $125.2 billion.
“While IT spending is contracting across most industries and technologies in the wake of the pandemic, security spend remains strong, particularly in industries including state and local governments, telecom and federal and central governments that have become essential in our new environment,” said Karen Massey, research manager of customer insights and analysis at IDC. “Indeed, these three industries will exhibit double-digit growth in security spending through 2024. Meanwhile, banking, manufacturing and professional services continue to have the largest share of security spending. We even see positive movement in security for industries that are currently struggling, such as retail and transportation.”
To learn more about managed services in the security space and beyond, TMC is hosting its MSP Expo from February 19-21 at the Miami Beach Convention Center. The event will bring together MSP business owners and technology specialists to share networking opportunities and growth strategies.
Edited by
Maurice Nagle
