Cloud Security Spending to Surge Alongside Public Cloud Services Growth
Gartner forecasted spending on security and risk management to increase worldwide, reaching $215 billion in 2024, demonstrating the escalating emphasis on fortifying cybersecurity measures. This surge, estimated at 14.3% from 2023’s $188.1 billion, underscores the growing impact of cloud adoption, the proliferation of hybrid work models, the rapid integration of generative AI (GenAI), and the evolving regulatory landscape.
Shailendra Upadhyay, Senior Research Principal at Gartner, highlighted these drivers, emphasizing how they are compelling security and risk management (SRM) leaders to elevate their expenditures. This increased spending is directed toward adopting technical security capabilities that offer enhanced visibility and responsiveness across an organization’s digital ecosystem. Simultaneously, security operations are restructuring to facilitate agility while upholding robust security standards.
The projection highlights significant growth in data privacy and cloud security spending for 2024, which is expected to soar by more than 24% each year. Data privacy retains prominence as regulations governing personal data processing, especially in AI applications, continue to evolve. Gartner forecasts that by 2025, modern privacy regulations will cover 75% of the global population’s data.
Increased reliance on public cloud services will fuel spending on cloud security tools, particularly in segments like cloud access security brokers (CASB) and cloud workload protection platforms (CWPP). By 2024, combined spending on CASB and CWPP is expected to reach $7 billion, reflecting a 24.7% increase from 2023. There’s also a rising demand for cloud-based detection and response solutions like endpoint detection and response (EDR) and managed detection and response (MDR).
The security services sector, encompassing consulting, IT outsourcing, implementation, and hardware support, will hit $90 billion in 2024, marking an 11% increase from 2023. It’s estimated to constitute 42% of total security and risk management spending, maintaining its status as the most significant spending area. Shailendra Upadhyay emphasizes the critical nature of robust cybersecurity programs in today’s environment, essential for safeguarding against escalating cyber threats, adapting to evolving attack surfaces, adopting new security capabilities, and driving efficiencies through automation.
FAQs
1. What factors are compelling Security and Risk Management (SRM) leaders to elevate their expenditures?
SRM leaders are driven to invest in technical security capabilities that offer enhanced visibility and responsiveness across their organization’s digital ecosystem while ensuring agility and robust security standards.
2. What key segments are expected to see a rise in demand for cloud-based detection and response solutions?
Segments like Endpoint Detection and Response (EDR) and Managed Detection and Response (MDR) are witnessing increased demand due to their cloud-based detection and response capabilities.
3. What constitutes the most significant security and risk management spending?
The security services sector, including consulting, IT outsourcing, implementation, and hardware support, is estimated to reach $90 billion in 2024, constituting 42% of total spending.
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