Publication date: 15 Sep 2023
European IT Security Spending to Grow by More Than 12% in 2023 Despite Economic Slowdown, Says IDC
Prague, September 15 — According to the latest release of the Worldwide Security Spending Guide published by International Data Corporation (IDC), European security spending will grow by 12.2% year on year in 2023, maintaining its resilience to the negative effects of economic recession, as security becomes one of the defining characteristics of a successful organization. With further growth expected beyond this year, total European security spending will reach almost $79 billion in 2027.Among European countries, the Czech Republic will exhibit the greatest increase in security investments over the 2022-2027 forecast period, with a compound annual growth rate (CAGR) of almost 15%, followed by Ireland and Germany. Both security software and security services will be investment drivers, with double-digit CAGRs through 2027, while security hardware will exhibit only modest growth over the five-year period.
“European organizations recognize that robust security is not just an expense, but a strategic investment. The increasing reliance on technology for business operations, coupled with the growing threat landscape, is driving a need for proactive security measures. This is essential to ensure business continuity and customer trust, and safeguard users, devices, and apps. Creating a resilient and secure environment will enable innovation and accelerate business growth,” says Romain Fouchereau, research manager at IDC European Security.
The healthcare industry will record one of the largest year-on-year growth rates of security spending in 2023, driven by the need to protect investments in technology innovation, and to address the evolving regulatory requirements, such as those included in the Cyber Resilience Act. Organizations in the finance sector will also accelerate security investments, fueled by the need for speed and agility for competitiveness, as well as the obligation to secure clients' sensitive data . Security spending in the media & telecommunications industry will continue to grow quickly, with investments related primarily to the protection of 5G, Edge, and Internet of Things (IoT) deployments.
The most recent changes in the EU-wide legislation on cybersecurity are also expected to have a positive impact on European security spending.
“The expanded inclusion of organizations, especially in the healthcare sector, which the NIS2 Directive considers the Operators of Essential Services (OESs), along with stricter requirements compared to the previous version of the regulation, is stimulating aggressive security spending in what would otherwise be considered more conservative industries,” notes Vladimir Zivadinovic, senior research analyst at IDC European Data and Analytics.
About IDC Spending Guides
IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, enabling the user to easily extract meaningful information about each market by viewing data trends and relationships.
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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
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