IDC: Europe’s IT security Spending Increasing 10.8% in 2022

IDC Europe - IT Security Spending to Grow 10.8% in 2022 with Government taking the lead, says IDC - 2022 Aug

International Data Corporation (IDC) predicts that European IT security spending will continue to increase steadily, with growth of 10.8 percent Year-over-Year (YoY) in 2022, despite the shifting geopolitical landscape and the ensuing inflationary pressure. Government spending on IT security in Europe would take the lead.

According to IDC’s latest Worldwide Security Spending Guide, European IT security spending will top $47 billion in 2022. The projected compound annual growth rate (CAGR) over the five-year period (2021-2026) is 9.4 percent, with a peak of $66 billion in 2026.

Over the projected period, IT security services will increase at the fastest rate (10.2% CAGR), driven by a shortage of qualified cybersecurity personnel. The largest spending category will also be IT security services, followed by software and hardware.

The Czech Republic and Poland will have the region’s greatest YoY growth rates for IT security spending in 2022, each above 15 percent. The Western European bloc, which consists of Belgium, France, Germany, and Switzerland, will be followed by the Czech Republic, which will continue to have the strongest growth over the period 2021–2026.

“The evolution of the European cybersecurity market continues to progress at high speed,” said Stefano Perini, Research Manager at IDC European Data & Analytics. “The increased threat landscape, the shift to hybrid work environments and greater reliance on cloud services have expanded organization’s attack surface that needs protection and monitoring. This has pushed European organizations to upgrade their security infrastructure, especially in cloud, network, and data security.”

Overview of Industries

With over $6 billion in IT security spending in 2022, banking will be the largest industry in Europe. Banking, which has a higher level of cybersecurity maturity, plans to expand spending even more, while putting a strong emphasis on constructing cyber resilience.

Discrete manufacturing and professional services are anticipated to spend more than $5 billion and $4 billion on security, respectively, to rank second and third in 2022. Discrete manufacturing companies are forced to plug holes in their IT and OT cyber defenses due to the number and complexity of cyberattacks, while professional services providers are focusing more on cloud and endpoint security solutions.

2022 will see government expenditure on IT security expand at the fastest rate (11.9 percent), followed by transportation and wholesale, both of which will see spending growth above 11 percent. Protection of cloud workloads, protecting collaboration platforms, and data security are the top 3 security objectives for the government sector. Transportation supply chain security is a top priority, with a heavy emphasis on securing remote equipment, contactless payment systems, and wholesale improved edge protection.

About the IDC Spending Guide

With thorough prediction data for security expenditure by 20 industries across nine regions and 44 countries, IDC’s Worldwide Security Spending Guide estimates the global revenue opportunity for both core and next-generation security purchasing. The impact of the Russia-Ukraine war on all technological markets as of the end of July 2022 is updated in this version of the spending guide (V2 2022). From a regional, vertical industry, use case, buyer, and technology viewpoint, IDC’s Spending Guides would offer a detailed view of key technology markets.

IDC Research