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Experts Predict $120B in Global Spending on Security Products, Services By 2021

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By peter oluka

Worldwide spending on security-related hardware, software, and services is forecast to reach $119.9 billion in 2021, according to a recent update to the Worldwide Semiannual Security Spending Guide from International Data Corporation (IDC).

With nearly every industry investing in security solutions to meet a wide range of threats and requirements, spending is expected to achieve a compound annual growth rate (CAGR) of 9.6% over the 2016-2021 forecast period.

Worldwide spending on security products and services will total $83.5 billion in 2017, an increase of 10.3% over 2016.

“Three overarching trends are driving security spending: a dynamic threat landscape, increasing regulatory pressures, and architectural changes spurred by digital transformation initiatives,” said Sean Pike, program vice president for IDC’s Security Products and Legal, Risk, and Compliance programs. “While IDC expects spending to continue growing, organizations are actively searching for product and service efficiencies that maximize spend in order to fully address such complex challenges.”

IDC expects security spending to be somewhat evenly spread across four industry sectors in 2017: distribution and services ($19.7 billion), public sector ($18.6 billion), manufacturing and resources ($16.4 billion), and financial ($16.3 billion).

By 2021, however, the financial sector is forecast to move ahead of manufacturing and resources due to a 2016-2021 CAGR of 10.2%. Similarly, public sector security spending will nearly pull even with distribution and services by 2021 with a CAGR of 10.3%. The fastest growing sector over the five-year forecast period will be infrastructure with a CAGR of 11.8%.

“Ever-changing security threats, fear of data breaches, and regulatory compliance will continue to drive security investments across all industries,” said Eileen Smith, program director, Customer Insights and Analysis. “On a global basis, banks, discrete manufacturers, and federal/central government agencies will spend the most on security products and services throughout the forecast. Combined, these three industries will contribute to 30% of the worldwide total spending in 2017.”

In addition to being among the industries spending the most on security solutions in 2017, federal/central government and banking will be two of the industries that will see the fastest growth in security spending over the five-year forecast, with CAGRs of 10.9% and 10.7%, respectively. The industry that will see the fastest growth is telecommunications, with a CAGR of 12.6%. This growth will enable telecommunications to become the fourth largest industry in terms of total security spend in 2021, moving ahead of the process manufacturing and professional services industries.

More than 80% of security spending in 2017 will go to services and software. Services spending will be led by two of the largest technology categories – managed security services ($15.25 billion) and integration services ($12.5 billion). Software spending will be focused on three categories – endpoint security, identity and access management, and security and vulnerability management – that will make up more than 75% of the software total this year.

Hardware spending will be significantly smaller throughout the forecast, dominated by network security solutions ($13.7 billion in 2017).

In addition to being the two largest technology categories, managed security services and network security will also be the fastest growing categories during the 2016-2021 forecast with CAGRs of 14.3% and 11.4%, respectively.

The largest market for security products and services on a geographic basis will be North America with total spending of $37.8 billion this year. The second largest geographic market will be Europe, the Middle East and Africa (EMEA) at $26.2 billion followed by Asia/Pacific (excluding Japan)(APeJ) at $11.5 billion.

APeJ will see the fastest growth in security spending over the forecast period with a five-year CAGR of 19.9%. Within the region, China and Malaysia will see particularly strong growth with five-year CAGRs of 25.3% and 20.1%, respectively. Latin America is also expected to outperform the overall market with a CAGR of 10.4%.

From a company size perspective, large and very large businesses (those with more than 500 employees) will be responsible for roughly two thirds of all security-related spending throughout the forecast.

IDC also expects very large businesses (more than 1,000 employees) to pass the $50 billion spending level in 2019. Small and medium businesses (SMBs) will also be a significant contributor to BDA spending with the remaining one third of worldwide revenues coming from companies with fewer than 500 employees.

The Worldwide Semiannual Security Spending Guide quantifies the global revenue opportunity for both core and next-generation security purchases.

The guide offers detailed forecast data for security spending by 20 industries across eight regions and 53 countries.

Unlike any other research in the industry, the comprehensive spending guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of security-related spending today and over the next five years.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

General News

Nigeria to Launch 4 Satellites for Surveillance, Others

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Federal Executive Council (FEC) has approved the launch of four satellites aimed at strengthening Earth observation capabilities and improving national security, according to Uche Nnaji, minister of Innovation, Science and Technology.

Nigeria to Launch 4 Satellites for Surveillance, Others

Uche Nnaji, minister of Innovation, Science and Technology

Speaking at the 22nd National Council on Innovation, Science and Technology (NCIST) in Abuja, Nnaji said the satellites include three Earth Observation models and one Radar Aperture satellite. The council meeting was held from 12 to 14 May under the theme: “Research, Develop, Innovate and Commercialise: A Cycle for National Prosperity.”

“Just last week, the Federal Executive Council approved that Nigeria launch four satellites—three Earth Observation satellites and one search satellite,” the minister said.

According to him, the Radar Aperture satellite will be capable of capturing images under various conditions, including nighttime and rainfall.

“The search satellite is the one that will pick images both day, night, during rain, every time of the day, and that is technology in play. The military can use it effectively,” he said.

Nnaji noted that this will reduce Nigeria’s reliance on purchasing data and imagery for monitoring remote areas like the Sambisa forest.

On policy development, he said an inter-ministerial committee is reviewing the National Science, Technology and Innovation Policy and working on establishing a National Research and Innovation Fund.

“As a country, we can no longer afford to ignore the widening gap between research and real-world impact,” Nnaji said. “For decades, valuable research conducted in our universities and institutions has remained underutilised, disconnected from industries and policy.”

He pointed out the challenges faced by young innovators, including a lack of structured support and financing to transform ideas into marketable products.

“Let this 22nd edition of NCIST mark the beginning of a new chapter, one where every research has a roadmap to industry,” he said.

Nnaji called for sustained efforts from researchers, private investors, and regulators to ensure innovations are protected and supported. “The government must build and enforce regulatory frameworks that protect, support, and incentivise innovation at every level,” he added.

He said the council’s resolutions would be forwarded to FEC for formal adoption and reaffirmed the ministry’s plan to restore the council’s annual meeting schedule after delays pushed the 22nd edition into 2025.

Esuabana Nko-Asanye, the ministry’s permanent secretary, described the meeting as a platform to promote inter-sectoral collaboration and address challenges such as insecurity, unemployment, and climate change. She said 109 memoranda were presented, highlighting proposals on issues like commercialising research, boosting funding for innovation, and building capacity in emerging technologies.

“The richness and diversity of these submissions underscore the growing recognition of science, technology and innovation as a cornerstone of Nigeria’s sustainable development,” Nko-Asanye said.

George Akume, secretary to the Government of the Federation, represented by Morris Mbaeri, said building a resilient innovation ecosystem is key to national development. “This cycle is very essential in addressing real-world challenges and unlocking long-term prosperity,” he said.

Azikiwe Onwualu, president, African University of Science and Technology (AUST), urged the government to increase research and development spending to 3% of GDP and proposed the establishment of more RDIC clusters that integrate academia, industry, and startups.

He said: “We should operationalise the National Research and Innovation Council Fund to coordinate RDIC efforts as envisaged in the STI policy.”


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Shell Reports 122 Percent Surge in Oil Spills from Nigerian Operations in 2024

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Shell Plc has reported a significant 122% increase in operational oil spill incidents in Nigeria in 2024, driven largely by equipment failures and persistent sabotage, according to its newly released 2024 Annual Report and Accounts.

Shell Reports 122 Percent Surge in Oil Spills from Nigerian Operations in 2024

The company’s Nigerian subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), which operates the SPDC Joint Venture (JV), recorded 20 oil spill incidents exceeding 100 kilograms during the year up from just 9 incidents in 2023.

The report attributed the surge in operational spills primarily to defective pipeline clamps.

These clamps, which were locally manufactured and used in pipeline repairs after the removal of illegal connections, were found to have factory faults.

Shell confirmed that the manufacturer has since recalled the faulty batch, and SPDC has begun replacing the affected components.

As a result, the volume of operational oil and product spills spiked to 0.37 thousand tonnes, compared to just 0.005 thousand tonnes recorded in the previous year.

Two major spills one onshore along the Trans Niger Pipeline and one offshore at a terminal loading buoy accounted for 89% of the total volume.

SPDC JV has said it is implementing a comprehensive pipeline maintenance and replacement program aimed at reducing such incidents in the future.

Beyond equipment failures, Shell identified third-party interference and crude oil theft as a continuing challenge, noting that 81% of spill incidents in 2024 were caused by sabotage.

There were 84 theft- or sabotage-related spills totaling 2,000 tonnes of crude oil in 2024, compared to 139 such incidents amounting to 1,400 tonnes in 2023.

While the number of incidents declined, the volume spilled increased, indicating that larger-scale breaches may have occurred despite improved surveillance and protection measures.

Shell’s report highlighted ongoing efforts to combat vandalism and protect infrastructure.

The SPDC JV continued to deploy aerial surveillance, drone monitoring, and on-ground patrols to detect and respond to illegal activities and spills more rapidly.

Key anti-theft protection measures were further enhanced in 2024, including:

Reinforced wellhead and manifold cages

Use of anti-theft nuts

Upgraded CCTV systems and networking technologies

In addition, Shell reported ongoing collaboration with Nigerian government security agencies to maintain surveillance and secure the pipeline network and operational areas.

“SPDC JV continued to work closely with authorities to address third-party interference, particularly along our pipelines,” the report stated.

Shell reiterated its commitment to reducing environmental impact through proactive infrastructure upgrades and improved response systems, while also calling for stronger enforcement against crude oil theft and pipeline vandalism issues that have plagued Nigeria’s energy sector for years.


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NOTAP Urges South Eastern Entrepreneurs to Embrace Franchising as Business Model  

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Dr. Obiageli Amadiobi, DG/CEO, NOTAP
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Dr. Obiageli Amadiobi, director general and chief executive officer, National Office for Technology Acquisition and Promotion (NOTAP), has advocated Franchising as a sustainable business model for the South East entrepreneurs.

NOTAP Urges South Eastern Entrepreneurs to Embrace Franchising as Business Model  

Dr. Obiageli Amadiobi, DG/CEO, NOTAP

She made this call during a one-day sensitization and unveiling of the NOTAP Franchising Guidelines for south east stakeholders and entrepreneurs for a successful franchising business.

The DG who was represented at the event by Mr. Emeka Orji, head of Department Corporate Planning (CP) Department, NOTAP, said that franchising business model had globally been proven to be successfully sustainable due to low business risks associated with it.

She defines franchising as a contractual business relationship between a licensor (the franchisor) and a licensee (the franchisee) that allows the business owner to use the licensor’s brand and methods of doing business to distribute products or provide services to consumers.

She added that in essence, the franchisee pays the franchisor for the opportunity to use his established business model and brand name in running his business.

Dr. Amadiobi said the essence of the workshop was not just organised to explore the possibility of adopting franchising as a strategic platform to transform local dreams into national and global business realities.

She described the programme as an opportunity for business owners and intending entrepreneurs from the Zone  to latch into the huge and untapped potentials provided by franchising business models in becoming business and brand ambassadors.

With over 800,000 franchise establishments across the globe, generating trillions in revenue, she described Franchising as a pathway to economic empowerment.

 

 

 


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