No Need for a Recount: IDC Confident the U.S. Market for Information Security Services Will Exceed $8 Billion in 2004
FRAMINGHAM, MA — NOVEMBER 28, 2000 — The increasing scope and sophistication of internal and external security threats are driving the demand for information security services to new heights. According to IDC, the worldwide market for security consulting, implementation, management, and training services will increase at a compound annual growth rate (CAGR) of 26%, from $5.5 billion in 1999 to $17.2 billion in 2004. The U.S. market will represent nearly half of the worldwide spending total, accelerating from $2.8 billion to $8.2 billion during the same period.
"The message throughout the marketplace is security is rapidly becoming less about fear, doubt, and worry and more about enablement and collaboration," said Richard Dean, manager for IDC's Information Security Services (ISS) research program. "It's clear that proactive security initiatives mitigate the risks to which mission-critical business infrastructures are exposed. This realization often leads to security- conscious organizations looking to outside experts for guidance on the most appropriate solution."
In the United States, IDC believes managed security services and security education and training will drive much of the spending. The 1999-2004 CAGRs in these two segments are forecast to reach 28% and 26%, respectively. By comparison, the U.S. total CAGR is expected to be 24%.
Outside the United States, Asia/Pacific is expected to be one of the fastest-growing regions for information security services. Demand is expected to increase at a 30% CAGR from 1999 to 2004. "One factor influencing this regional growth is U.S. support for China's entry into the World Trade Organization by granting the country permanent normal trade relations status," said Allan Carey, senior analyst for IDC's Information Security Services program.
Market trends and regional forecasts similar to those mentioned above are found in IDC's report Information Security Services Worldwide Market Forecast and Analysis, 1999-2004 (IDC #B23166). This report describes the worldwide market for information security consulting, implementation, management and monitoring, and education and training services across seven global regions. It also sizes and forecasts the U.S. markets for 16 discrete service activities within this service category, including additional top-level segmentation by region and vertical industry.
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IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in- depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.
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