The company said over the five-year period 2019-24, growth in this segment was expected to show a compound annual rate of growth of 13.3% and reach US$35 billion by 2024.
IDC said the growth over the period would be driven by cloud adoption, a big migration from working from home, and business transformation projects to overcome operational challenges.
“[The year] 2020 defined the importance of digital for everyone globally, but it also highlighted shortcomings in security strategies," says Simon Piff, vice-president of Trust, Security, and Blockchain Research at IDC Asia/Pacific.
"This majority needs to change their mindset and invest more strategically in their security architectures."
IDC said banking, telecommunications, governments, were the three main growth areas in 2021, as they were increasingly the targets of digital fraud, cyber crime and data breaches. These three were forecast to make up half the spending.
At the moment, the biggest increase in security spending is in state/local government (18.5%), transportation (13.9%) and retail (13.7%), driven by the need for data security, e-commerce, working from home, digitisation of logistic monitoring, payments, and contracts, and in catching up on the lack of spending in previous years.
Services is expected to be the biggest growth area in the Asia-Pacific, with hardware second. Large firms (500 to 1000 workers) are forecast to account for two-thirds of the security spending in the region in 2021.
“In Asia/Pacific, investments on security-related products and solutions (i.e. endpoint security, VPN, and firewalls) will experience double-digit growth in 2021 due to the increased spending by both governments and enterprises (particularly in the banking, telecom, and professional services industry) to enable a safe, efficient, and trustworthy digital environment for the expanded remote workforce,” said Sharad Kotagi, associate market analyst at IDC IT Spending Guides, Customer Insights & Analysis.
China is expected to account for more than 40% of the spending in the Asia-Pacific excluding Japan, with Australia and India coming next.