Gartner Forecasts Global Security and Risk Management Spending to Grow 14% in 2024

Worldwide end-user spending on security and risk management is projected to total $215 billion in 2024, an increase of 14.3% from 2023, according to new forecast from Gartner, Inc. In 2023, global security and risk management end-user spending is estimated to reach $188.1 billion.

“The continuous adoption of cloud, continuous hybrid workforce, rapid emergence and use of generative AI (GenAI), and the evolving regulatory environment are forcing security and risk management (SRM) leaders to enhance their security and risk management spending,” said Shailendra Upadhyay, Senior Research Principal at Gartner. “At the same time, they are focusing their efforts by adopting technical security capabilities that provide far greater visibility and responsiveness across the organization’s entire digital ecosystem and restructuring the way the security function operates to enable agility without compromising security.”

Spending on data privacy and cloud security are projected to record the highest growth rates in 2024, with each segment increasing more than 24% year-over-year (see Table 1). Privacy remains a top organizational priority as regulations that impact the processing of personal data continue to emerge, including those related to the use of AI. Gartner predicts that by 2025, 75% of the world’s population will have its personal data covered by modern privacy regulations.

Table 1. Security and Risk Management End-User Spending for All Segments, Worldwide, 2022-2024 (Millions of U.S. Dollars)

Source: Gartner (September 2023)

The continued growth in public cloud services will bolster spending on cloud security tools. In the cloud security segment, the combined spending on cloud access security brokers software (CASB) and cloud workload protection platforms (CWPP) is projected to total $7 billion in 2024, up 24.7% from 2023. Demand for cloud-based detection and response solutions — such as endpoint detection and response (EDR) and managed detection and response (MDR) — is also expected to increase in 2024.

In the Middle East and North Africa (MENA) region, end-user spending on security and risk management is forecast to total $3.3 billion in 2024, an increase of 12.7% from 2023. In 2023, end-user spending on security and risk management in MENA is estimated to reach $2.9 billion (see Table 2).

Table 2. Security and Risk Management End-User Spending for All Segments in MENA, 2022-2024 (Millions of U.S. Dollars)

Source: Gartner (September 2023)

“Organizations in the MENA region are expected to increase their spending because of increased digitalization and concerns around cyberattacks,” said Upadhyay.

In 2024, data privacy spending is projected to record the highest growth at 25.4%. “The growth in data privacy spending is due to stringent data protection laws implemented by the governments, such as Personal Data Protection Law in Saudi Arabia effective from September 2023. This law is in continuation of current laws in the UAE, such as Federal Decree Law No. 45 of 2021 on the Personal Data Protection and Privacy legislation of free economic zones,” said Upadhyay.

Security Services Segment to Represent 42% of Global Security and Risk Management Spending

Spending on security services – consulting, IT outsourcing, implementation and hardware support –is forecast to total $90 billion in 2024, an increase of 11% from 2023. Security services is expected to represent 42% of total security and risk management end-user spending in 2024, and to remain the largest area of security and risk management spending in 2024.

“In light of cyber risks increasing, cyberthreats proliferating and a changing operating environment, it is more critical than ever for organizations to build and optimize a cybersecurity program,” said Upadhyay. “It is the cornerstone of cybersecurity initiatives which help SRM leaders secure new environments, protect against the expanded attack surface, consume security capabilities in new ways and create better efficiencies through automation.”

Gartner clients can read more in “Forecast Analysis: Information Security and Risk Management, Worldwide.”

Learn how to manage human risk to build a security-conscious organization in the complimentary Gartner ebook 4 Ways to Achieve Secure Employee Behaviors.