The report —Forecast: Information Security, Worldwide, 2016-2022, 2Q18 Update — from analyst firm Gartner, reveals that security services in Australia make up the bulk of spending this year, exceeding $2.15 billion in 2018.
And across the Tasman in New Zealand, Gartner reports that security spending is expected to grow 9% to reach NZ$550 million in 2018 – and increase a further 9.9% to NZ$604 million in 2019.
In New Zealand, by far the smallest but fastest growing product category is cloud security (around NZ$1 million in 2018), Gartner says.
"Security leaders are striving to help their organisations securely use technology platforms to become more competitive and drive growth for the business," said Siddharth Deshpande, research director at Gartner.
"Persisting skills shortages and regulatory changes like the EU’s Global Data Protection Regulation are driving continued growth in the security services market."
A 2017 Gartner survey revealed that the top three drivers for security spending are security risks, business needs and industry changes. Privacy concerns are also becoming a key factor.
Gartner believes privacy concerns will drive at least 10% of market demand for security services through 2019 and will affect a variety of segments, such as identity and access management, identity governance and administration and data loss prevention.
Deshpande said highly publicised data breaches, like the recent attack on SingHealth that compromised the personal health records of 1.5 million patients, reinforced the need to view sensitive data and IT systems as critical infrastructure.
"Security and risk management has to be a critical part of any digital business initiative," he said.
Gartner says an increased focus on building detection and response capabilities, privacy regulations such as GDPR, and the need to address digital business risks are the main drivers for global security spending through 2019.