Enterprise security spending in Australia to increase

Will increase at 6.7 per cent CAGR over 2020-2025.

The total addressable market size of IT security in Australia, in terms of enterprise spending, is set to grow at a CAGR of 6.7 per cent to reach $US3.5bn in 2025, led by continued rise in enterprise managed security service investments, and rising demand for identity & access management, security intelligence & management and endpoint security platforms, says GlobalData, a leading data and analytics company.

Saurabh Daga, Technology Analyst at GlobalData, comments: “With most enterprises in Australia continuing with work-from-home strategy considering the second wave of COVID-19 pandemic and extended lockdowns seen in recent times across major cities in the country, the demand for security solutions that can protect enterprise IT infrastructure against security threats that may arise from mobile devices and networks used in remote working environments, will grow in the short to medium period.”

Continued rise in volume and sophistication of security breach incidents at enterprises across industries will also help drive enterprise IT security spending in Australia. The ransomware attack on healthcare service operator – Eastern Health in March 2021, and data breaches at Tasmanian Ambulance in January 2021, Northern Territory Government in February 2021, Western Australian Parliament in March 2021, and Service NSW in 2020, for instance, will reinforce the need for security spending among enterprises in the nation.

Daga adds: “The large-scale shift in IT infrastructure needs among enterprises following the COVID-19 crisis especially in the form of online service delivery and cloud services, and the potential security risks that come along with it will additionally help drive enterprise IT security spending to increase at a CAGR of 7 per cent over the forecast period 2020-2025.”

The cybersecurity laws in place in the country, especially ‘The Security of Critical Infrastructure Act 2018’ and its proposed amendment ‘Security Legislation Amendment (Critical Infrastructure) Bill 2021’, to safeguard the critical information infrastructure against cyber-attacks, will provide a strong impetus for implementing efficient IT and data security solutions in the critical sectors mentioned within the act including financial markets, communications, defence, energy, health care and medical, space tech, transport, water and sewage, higher education and research, food and grocery, and data storage and processing.

Among all enterprise security market segments comprising hardware, software, and managed security services, spending on security software is set to increase at a fastest CAGR of 6.5 per cent over the forecast period 2020-2025. Growth in this segment will be primarily led by increasing demand for Identity and Access Management, End Point Security Platforms, and Security Intelligence and Management solutions, the importance of which have come to the forefront amidst the current remote working environment”

Managed security services, on the other hand, will account for the largest share of the overall enterprise security spending opportunity through the forecast period. Lack of skilled information security resources, and the complexity of deploying and managing advanced security solutions will encourage enterprises to adopt managed security services.

Daga concludes: “While the large enterprise segment (1,001+ employees) will jointly account for largest share of the total enterprise security spending in Australia through the forecast period, the combined spending from micro (1-50 employees), small and medium enterprises (51-1,000 employees) will increase at a marginally faster CAGR of 6.8 per cent over the forecast period.”

 

 

Tags:

Leave a Comment

Related posts