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October 14, 2016

Healthcare fastest growing industry in security investments

Healthcare is the fastest growing industry when it comes to investments in security. In the coming five years, healthcare organisations will grow their spending on IT security with a CAGR (compound annual growth rate) of 10.3 percent.

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Other industries with fast growing IT security budgets are telecommunications, utilities, state/local government, and securities and investment services, according to market research firm IDC. Each of these five industries will experience CAGRs above 9.0% over the forecast period. Banking ($8.6 billion), discrete manufacturing, federal/central government, and process manufacturing are and will remain the biggest spenders on IT security hardware, software and services.

Total worldwide spending on IT security will top 100 billion dollars in 2020, growing with a CAGR of 8,3 percent (more than double compared to overall IT spending growth). IT security spending in 2016 will be 73.7 billion dollars.

Compliances drives growth

"The pace and threat of security attacks is increasing every year, especially across compliance-driven industries like healthcare, telecom, government and financial services," said Eileen Smith, program director, Customer Insights and Analysis. "In addition to the traditional challenges of risk and regulatory compliance, digital transformation and the use of 3rd Platform technologies are putting even more pressure on organizations across all industries to develop and execute on a new generation of security measures."

Categories

The largest category of investment will be security-related services, which will account for nearly 45% of all security spending worldwide in 2016. The largest segment, managed security services, is forecast to generate revenues of $13 billion this year. Security software will be the second largest category in 2016, with endpoint security, identity and access management, and security and vulnerability management software driving more than 75% of the category’s revenues.

Finally, security hardware revenues will reach $14.0 billion in 2016, led by purchases of unified threat management systems. One of the fastest growing segments of the security products market will be user behavior analytics software with a CAGR of 12.2%.

Growing security threat

More and more reports indicate that the healthcare sector is under a growing security threat.  In earlyn September, Intel security released a report stating ransomware is beginning to have a real impact on the health sector. Later that month security supplier Gemalto reports in its Data breach Index the health sector suffered over a quarter of all reported data breaches worldwide. And this percentage is growing.  Last summer a Deloitte research concluded that hospitals have a bad track record when it comes to using password protection for IT systems and connected devices.

Healthcare fastest growing in mobility spending

Recently, IDC stated that healthcare is also the fastest growing industry when it comes to spending on mobility. The industry that will deliver the fastest revenue growth in mobility over the 2015-2020 forecast period is healthcare (5.1% CAGR), followed by telecommunications, professional services, and utilities.

"Worldwide, the healthcare provider industry is expected to have the fastest growth in mobility spending over the life of the forecast," said Jessica Goepfert, program director, Customer Insights and Analysis. "Within the U.S., however, while the healthcare provider industry is still expected to be among the top 5 growth areas for mobility, spending is starting to temper."

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