Cybersecurity investment to grow by 13% in 2023

According to Canalys’ latest cybersecurity forecasts, global cybersecurity spending (including enterprise products and services) will increase by 13.2% in 2023 and remain a key growth sector for channel partners.

Total spending in 2023 is expected to hit US$223.8 billion in the best-case scenario, with growth in the delivery of cybersecurity services outpacing product shipments. Persistent heightened threat levels will keep cybersecurity high on the list of investment priorities for organizations. But not all planned projects will be signed off, as pressure mounts on budget holders to scrutinize spending and focus only on the most pressing cybersecurity needs to minimize the risk of breaches. Spending among governments and enterprises will rise, but investment by smaller businesses will weaken as economic conditions deteriorate.

The evolving threat landscape will maintain pressure on organizations to broaden and deepen their cybersecurity defenses, expand detection capabilities and improve incident response in 2023. “Ransomware remains the biggest threat to organizations from an operational, financial and brand perspective. But the emergence and abuse of generative AI models, such as ChatGPT, will increase the risk to another level in 2023,” said Matthew Ball, Chief Analyst at Canalys. “This will enable and accelerate the creation of malicious code on an industrial scale by more threat actors and increase the frequency and range of attacks. Organizations are already struggling to deal with current threat levels and cannot afford to cut back on spending as it will leave them even more vulnerable. Instead, they will need to work more closely with channel partners to make smarter investments.”

The delivery of cybersecurity services, including consulting, outsourcing, deployment, integration, maintenance and managed services, is forecast to grow by 14.1% to US$144.3 billion in 2023. This will account for 64.5% of the worldwide cybersecurity market in 2023. “Organizations will continue transforming their cybersecurity strategies to increase their resilience this year. Implementing Zero Trust architectures to address the vulnerabilities that have been successfully exploited over the last three years since the start of the pandemic will be the central theme,” said Srikara Upadhyaya, Research Analyst at Canalys. “This will drive more consulting engagements for channel partners, as well as create opportunities around deploying and integrating multiple products from different vendors, while reducing operational complexity via managed services. Overall, more than 90% of total cybersecurity product and services spending will go through channel partners in 2023.”

Shipments of cybersecurity products, including endpoint security, network security, web and email security, data security, identity and access management, and vulnerability and security analytics, will increase by 11.7% to US$79.5 billion in 2023. This represents robust growth for the technology sector, but is also a slowdown from 2022 levels, when organizations ramped up spending to upgrade existing defenses and added new capabilities, especially cloud, IoT/OT and identity security. Deal sizes will continue to increase in 2023. But this will also extend sales cycles, as additional levels of sign-off will be required. Presenting risk assessments and demonstrating a return on investment will be even more important for channel partners. But total cybersecurity spending will still fall short of the level needed to turn the tide against threats after years of chronic underinvestment.

The industry’s 'most comprehensive' as-a-Service and multicloud portfolio helps companies better manage their data and applications wherever they live.
Hornetsecurity’s 365 Permission Manager delivers effortless permissions management for Microsoft 365.
ThreatQ Platform and ThreatQ Investigations allow Thales to pioneer market-leading personalised threat intelligence services.
Turkey’s leading integrated telecommunication operator, Türk Telekom, has deployed A10 Thunder TPS® from A10 Networks to deliver DDoS protection services for its business customers. The service is protecting critical infrastructure from DDoS attacks, enhancing service access reliability for subscribers using on-premises DDoS protection solution from A10 Networks.
Modern cloud solutions are supporting delivery of these use cases, while also helping financial organisations improve regulatory compliance, reduce costs, drive business outcomes, and cut down on technical debt.
Barracuda Networks research finds 24% of organisations studied had at least one email account compromised through account takeover.
ForgeRock has launched a new partner programme that now provides a comprehensive set of benefits that will drive growth and help ForgeRock partners deliver remarkable customer experiences. To lead the new programme, ForgeRock has hired Chris Westfall as Vice President of Global Partner Strategy, Programmes and Operations, who brings expertise from over 20 years of partner ecosystem leadership across the software industry.
Palo Alto Networks has published a study revealing that 50% of UK CEOs at large organisations (500+ employees) agree that cybersecurity is a bigger risk to their organisation than economic uncertainty. Furthermore, 51% of CEOs agreed that as cyber risks increase rapidly their ability to insure their organisation against a successful attack keeps them awake at night.