According to a new forecast from Gartner, Inc., worldwide end-user spending on security and risk management is expected to reach $215 billion in 2024, representing a 14.3% increase from 2023. In 2023, global security and risk management end-user spending is estimated to reach $188.1 billion.
Shailendra Upadhyay, Senior Research Principal at Gartner, attributes this projected increase in spending to several factors. These include the continuous adoption of cloud computing, the continuous hybrid workforce, the rapid emergence and use of generative AI (GenAI), and the evolving regulatory environment. Upadhyay states that these factors are forcing security and risk management (SRM) leaders to enhance their spending in these areas. Additionally, organizations are prioritizing technical security capabilities that provide greater visibility and responsiveness across their entire digital ecosystem. They are also restructuring the way the security function operates to enable agility without compromising security.
One area that is expected to experience significant growth in spending is data privacy and cloud security. Gartner predicts that both segments will increase by more than 24% year-over-year in 2024. Privacy remains a top organizational priority as regulations impacting the processing of personal data, including those related to the use of AI, continue to emerge. Gartner also predicts that by 2025, 75% of the world’s population will have its personal data covered by modern privacy regulations.
The continued growth in public cloud services is expected to drive spending on cloud security tools. Gartner forecasts that combined spending on cloud access security brokers software (CASB) and cloud workload protection platforms (CWPP) will reach $7 billion in 2024, representing a 24.7% increase from 2023. The demand for cloud-based detection and response solutions, such as endpoint detection and response (EDR) and managed detection and response (MDR), is also expected to rise in 2024.
The report also highlights that spending on security services, including consulting, IT outsourcing, implementation, and hardware support, is forecasted to reach $90 billion in 2024, reflecting an 11% increase from 2023. Security services are expected to represent 42% of total security and risk management end-user spending in 2024 and remain the largest area of investment in this field.
Upadhyay emphasizes the importance of building and optimizing a cybersecurity program in light of increasing cyber risks, the proliferation of cyber threats, and a changing operating environment. He states that a solid cybersecurity program is the cornerstone of cybersecurity initiatives, enabling SRM leaders to secure new environments, protect against an expanded attack surface, consume security capabilities in new ways, and create better efficiencies through automation.
Gartner’s forecast analysis, titled “Information Security and Risk Management, Worldwide,” provides more in-depth insights into the projected trends and spending patterns in the security and risk management market.
For more information on managing human risk and building a security-conscious organization, Gartner offers a complimentary ebook titled “4 Ways to Achieve Secure Employee Behaviors.”
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Gartner for Cybersecurity Leaders is a resource that equips security leaders with the tools and knowledge necessary to reframe their roles, align security strategy with business objectives, and build programs that balance protection with the needs of their organization. More information about this resource is available on Gartner’s website.