IDC Predicts Asia Pacific Security Spending to Reach $36 Billion in 2023

Reading Time: 2 minutes

Asia Pacific organizations are expected to spend USD 36 billion on security hardware, services, and software in 2023, representing an increase of 16.7% over the previous year, according to IDC’s Worldwide Semiannual Security Spending Guide.

IDC predicts that spending on security-related products and services will maintain steady growth despite the economic slowdown and uncertainty risks, growing at a five-year CAGR of 15.4% to reach USD 55 billion by 2026, driven by the rise in cyber-attacks, digital transformation initiatives, and continued hybrid workforce trends.

The BFSI, telecommunications, government, and manufacturing industries are expected to remain the top spenders on security solutions in 2023, contributing more than 50% of the total security spending in the region. IDC’s report reveals that over 70% of organizations surveyed experienced cyberattacks in the last 12 months, and 55% of those organizations paid a ransom to avoid operational disruptions and financial losses.

Throughout the forecast period, security services, led by managed services, will dominate the security markets, accounting for nearly half of the security spending. The security software and security hardware spending will follow, with endpoint security, information and data security software, and identity and digital trust software leading the former, and network security needs leading the latter.

China is the top spender on security investments in the Asia Pacific region, accounting for over 40% of total spending in 2023, followed by Australia and India, which together account for 25% of overall security spending in 2023. The need for security capabilities to support complex IT environments and the shortage of skilled cybersecurity resources creates opportunities for vendors and channel partners to provide security service options.

The Worldwide Security Spending Guide provides detailed forecast data for security spending by 20 industries across nine regions and 53 countries and 5 company size bands, quantifying the global revenue opportunity for both core and next-generation security purchases.

Read Next: