Security Market Segment LS
Thursday, 22 April 2021 08:21

Asia-Pac security spending forecast to reach US$23.1b this year

Asia-Pac security spending forecast to reach US$23.1b this year Image by OpenClipart-Vectors from Pixabay

Expenditure on security hardware, services and software in the Asia-Pacific region, excluding Japan, is forecast to reach US$23.1 billion (A$29.8 billion) this year, the technology research firm IDC says, adding that this would represent a rise of 12.6% year-on-year.

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.

"While leading organisations are starting to adopt a more platform-based approach, the majority are still buying point-solutions to address specific concerns.

"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.

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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