Worldwide spending on security-related hardware, software, and services is forecast to reach $133.7 billion in 2022, according to an new update to the Worldwide Semiannual Security Spending Guide from International Data Corporation (IDC).
Although spending growth is expected to gradually slow over the 2017-2022 forecast period, the market will still deliver a compound annual growth rate (CAGR) of 9.9%. As a result, security spending in 2022 will be 45% greater than the $92.1 billion forecast for 2018.

Security-related services will be both the largest ($40.2 billion in 2018) and the fastest growing (11.9% CAGR) category of worldwide security spending. Managed security services will be the largest segment within the services category, delivering nearly 50% of the category total in 2022. Integration services and consulting services will be responsible for most of the remainder. Security software is the second-largest category with spending expected to total $34.4 billion in 2018. Endpoint security software will be the largest software segment throughout the forecast period, followed by identity and access management software and security and vulnerability management software. The latter will be the fastest growing software segment with a CAGR of 10.7%. Hardware spending will be led by unified threat management solutions, followed by firewall and content management.

Banking will be the industry making the largest investment in security solutions, growing from $10.5 billion in 2018 to $16.0 billion in 2022. Security-related services, led by managed security services, will account for more than half of the industry’s spend throughout the forecast. The second and third largest industries, discrete manufacturing and federal/central government ($8.9 billion and $7.8 billion in 2018, respectively), will follow a similar pattern with services representing roughly half of each industry’s total spending. The industries that will see the fastest growth in security spending will be telecommunications (13.1% CAGR), state/local government (12.3% CAGR), and the resource industry (11.8% CAGR).

“Security remains an investment priority in every industry as companies seek to protect themselves from large scale cyber attacks and to meet expanding regulatory requirements,” said Eileen Smith, programme director, Customer Insights and Analysis at the research company. “While security services are an important part of this investment strategy, companies are also investing in the infrastructure and applications needed to meet the challenges of a steadily evolving threat environment.”

The United States will be the largest geographic market for security solutions with total spending of $39.3 billion this year. The United Kingdom will be the second largest geographic market in 2018 at $6.1 billion followed by China ($5.6 billion), Japan ($5.1 billion), and Germany ($4.6 billion). The leading industries for security spending in the U.S. will be discrete manufacturing and the federal/central government. In the UK, banking and discrete manufacturing will deliver the largest security spending while telecommunications and banking will be the leading industries in China. China will see the strongest spending growth with a five-year CAGR of 26.6%. Malaysia and Singapore will be the second and third fastest growing regions with CAGRs of 21.1% and 18.2%, respectively.

From a company size perspective, large and very large businesses (those with more than 500 employees) will be responsible for nearly two thirds of all security-related spending in 2018. Large (500-999 employees) and medium businesses (100-499 employees) will see the strongest spending growth over the forecast, with CAGRs of 11.8% and 10.0% respectively. However, very large businesses (more than 1,000 employees) will grow nearly as fast with a five-year CAGR of 10.1%. Small businesses (10-99 employees) will also experience solid growth (8.9% CAGR) with spending expected to be more than $8.0 billion in 2018.

Siemens has supplied and installed its 1,000th traffic enforcement camera in the UK this year to monitor traffic on the newly-constructed A612 Daleside Road bus lane, the first in the UK to allow exemptions to Ultra Low Emission Vehicles (ULEVs). The milestone deployment is part of Nottingham’s Go Ultra Low City scheme which aims to boost the take-up of ULEV vehicles across the region.
Designed specifically to operate automatically in an unattended capacity, Siemens’ CCTV-based Lanewatch Mk3HD cameras form part of the company’s market-leading civil enforcement product portfolio.
The new 1.4 mile bus lane on Daleside Road is equipped with 10 enforcement cameras to monitor and enforce traffic using the bus lane. The cameras are wireless and can be relocated to other priority enforcement sites in the city if the need arises.

Each Lanewatch camera monitors a section of the bus lane and makes use of ANPR technology to detect vehicles. Onboard software then reads and checks the number plate of the vehicle against a DVLA vehicle emissions database in real-time to establish if it qualifies as an ULEV. Vehicles that do not qualify are recorded and the evidence is later used to issue a Penalty Charge.

From parking and bus lanes to red routes and yellow box junctions, Siemens offers proven solutions to monitor and enforce additional traffic contraventions including more complex moving traffic violations such as banned turns, no entries, going the wrong way in a one way street and illegal U turns.

Councillor Sally Longford, Portfolio Holder for Energy and Environment, said: “There are more than 12 miles of bus lanes in Nottingham, designed to give public transport passengers fast, reliable services. We already work with Siemens to maintain our existing enforcement cameras, and we knew we could rely on them for our newest bus lane, which allows ULEV drivers too.”

Mark Lethbridge, Nottingham City Council’s Technical Expert – Highway Systems, said: “Our relationship with Siemens for unmanned camera enforcement goes back more than 10 years. Over this time, we have come to appreciate the quality and durability of all their products, from cameras to review station software. The project support we receive from Siemens ensures we have the confidence to deliver our schemes not only within timescales but more importantly within budget.”

In a reaction to today’s market characterised by the continued evolution of the Internet of Things Bosch Building Technologies, Hanwha Techwin, Milestone Systems, Pelco and Vivotek have all joined forces by founding the Open Security & Safety Alliance.
The goal of this new organisation is to develop a framework providing standards and specifications for components including an industry-specific operating system, IoT infrastructure and a collective approach for data security and privacy.

This alliance is a non-profit corporation that brings together likeminded organisations in order to outline specifications for a common standardised platform for security and safety solutions. “With this initiative, we set the foundation for the creation of a secure and reliable ecosystem for the security and safety industry that brings together hardware manufacturers, software developers, integrators, consultants, users and many others,” says Tanja Rückert, President of Bosch Building Technologies. Collaboration and the definition of commonly agreed standards and specifications enables industry players to focus on the aspects that really add value for their customers and opens up new application possibilities.

“The coming together of different industry stakeholders who appreciate the need for better standardization and innovation in this market couldn’t come at a better moment. Our collective end users depend on us to drive this new way of working together. This is a great initiative for Bosch and the other Alliance members, but ultimately the end users of security and safety solutions will be the biggest beneficiaries,” says Bernhard Schuster, Executive Vice President with responsibility for Sales and Marketing as well as Security and Safety Systems at Bosch Building Technologies.

The establishment of the alliance by the five founding members – who are also forming its board – is the result of intense discussion and exchange of ideas with different companies active in video surveillance, access control, intrusion and building automation. The involved parties were ranging from manufacturers to component suppliers, software developers and integrators as well as distributors and current solution users. Currently, some 30 additional companies have already expressed an interest in joining the alliance. Ambarella, Anixter, Androvideo, Kings Security and Netapp are the first early adopters who signed the membership. The Alliance is open to players within the security and safety markets as well as companies of adjacent markets.