Ransomware fears push Australian IT security spending towards $4.6 billion

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In a climate of regular ransomware attacks and tougher legislation, cybersecurity spending by Australian businesses is set to boom over the next five years.

Australian private sector investment in cybersecurity is expected to reach $4.6 billion by 2025, growing at a compound annual growth rate (CAGR) of 6.7, according to new findings from analyst firm GlobalData. % between 2020 and 2025.

According to the report, the increase in the volume and sophistication of security breach incidents in enterprises across all industries is driving local spending on IT security.

These include the ransomware attack on healthcare operator Eastern Health in March 2021 and data breaches at Tasmanian Ambulance in January 2021, Northern Territory Government in February 2021, Parliament of Australia in March 2021 and to Service NSW in 2020.

In addition, corporate clients must take into account the Security (Critical Infrastructure) Amendment Bill 2021which will bring a series of new security requirements.

According to GlobalData, this will give a “strong impetus” to the implementation of effective IT and data security solutions in critical sectors.

These include financial markets, communications, defence, energy, health and medical care, space technology, transportation, higher education, and water and wastewater. , among others.

“Most Australian businesses continuing to work from home [strategies] Given the second wave of the COVID-19 pandemic and the prolonged lockdowns seen lately in major cities across the country, the demand for security solutions capable of protecting the enterprise’s IT infrastructure from security threats that may stemming from mobile devices and networks used in remote work environments will grow in the short to medium term,” said Saurabh Daga, technology analyst at GlobalData.

Split into segments, security software is expected to grow at the fastest CAGR of 6.5% over the forecast period 2020-2025.

This will be driven by the growing demand for identity and access management, endpoint security platforms, and security intelligence and management solutions, all of which have come to the fore due to working from home.

Managed security services, meanwhile, will account for the largest share of overall enterprise security spending opportunities throughout the forecast period, which means greater opportunities ahead for the channel community.

This demand stems from a lack of skilled information security resources, and the complexity of deploying and managing advanced security solutions will encourage enterprises to adopt managed security services, GlobalData said.

“While the large enterprise segment will jointly account for the largest share of total corporate security spending in Australia over the forecast period, the combined spending of micro, small and medium enterprises will grow at a slightly faster CAGR of 6 .8% over the forecast period. “, added Daga.

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