AI technologies driving security budgets 2024
GenAI and other AI technologies are contributing to increased security budgets in 2024. “GenAI brings pressure to increase cybersecurity budgets on two fronts: to secure an organisation’s development and use of GenAI applications and to use GenAI assistants to uplevel security analysts”, says Frank Dickson, vice president at market research firm International Data Corporation (IDC).
“Security is a board level conversation; cyber risk is business risk. Thus, security spending remains strong and carries with it a certain level of immunity from the negative effects of economic uncertainty.”
IDC says worldwide revenue for security products totalled $106.8 billion in 2023, an increase of 15.6% compared to 2022.
The largest technology category in 2023 was Network Security with worldwide revenues totalling $27.4 billion.
The next largest technology categories were Endpoint Security and Security Analytics with 2023 revenues of $21.6 billion and $20.0 billion respectively.
“The technology category with the greatest year-over-year revenue growth in 2023 was Cloud Native Application Protection Platforms at 31.5%, followed by Identity and Access Management at 21.4%. The other categories all saw annual revenue growth in the mid- to upper teens”, IDC reports.
The top five companies in the security products market in 2023 were Microsoft, Palo Alto Networks, Cisco, Gen Digital, and Fortinet with combined revenue of $28.8 billion or nearly 27% of the overall market.
An earlier report from World Economic Forum says that lack of cybersecurity specialists can threaten economic stability and technological innovation. The cybersecurity industry faces a critical global shortage of nearly 4 million professionals, WEF says in a White Paper.
“With a consistent year-on-year increase in demand for qualified practitioners, the deficit shows no sign of abating.”
“At a time when cyberthreats are increasing in sophistication and frequency, the cybersecurity workforce, as the backbone of organisational security, plays a key role in securing the benefits of the Fourth Industrial Revolution.”
“Failure to ensure a steady supply of cybersecurity professionals may have far-reaching consequences, with organisations worldwide finding themselves vulnerable and understaffed in the face of emerging threats.”
WEF says it is therefore imperative for decision-makers to prioritise cybersecurity talent management as a strategic necessity.
IDC has earlier said that security is a key IT investment area for European organisations as they will continue facing constant threat of cyberattacks and have to secure hybrid work environments while complying with national and international regulations.
European security spending will grow by 12.3% in 2024, marking another year of strong momentum with double-digit growth.
Spending in the region is expected to increase at a steady pace throughout the whole 2022-2027 forecast period, reaching $84 billion in 2027, IDC said in an earlier forecast.
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