Enterprise security spending will likely reach $96.3 billion (£72.2 billion) in 2018, an increase of eight per cent from 2017, according to a new prediction by Gartner.
According to the research, businesses are spending more on security as a result of incoming regulations, changing buyer mindset, better awareness of emerging threats and the evolution to a digital business strategy.
"Overall, a large portion of security spending is driven by an organisation's reaction toward security breaches as more high-profile cyber attacks and data breaches affect organisations worldwide," said Ruggero Contu, research director at Gartner.
"Cyber attacks such as WannaCry and NotPetya, and most recently the Equifax breach, have a direct effect on security spend, because these types of attacks last up to three years."
Gartner said this was highlighted by its 2016 security buying behaviour survey. Of the 53 percent of organisations that cited security risks as the top driver for overall security spending, most respondents said a breach is the main risk influencing their expenditure.
As a result, according to the company’s new research, security testing, IT outsourcing and security information and event management (SIEM) will be among the fastest-growing sub-segments driving growth in the infrastructure protection and security services segments.
Regulatory compliance and data privacy have also been stimulating spending on security during the past three years, Gartner found. This has most recently been seen in Europe concerning the General Data Protection Regulation, which comes into force in May 2018. The regulation, as well as other laws around the world, will result in increased spending, particularly in data security tools, privileged access management and SIEM.
Gartner predicted that by 2020, more than 60 per cent of organisations will invest in multiple data security tools, such as data loss prevention, encryption and data-centric audit and protections tools, up from roughly 35 per cent today.