The IT security market in China may become a $950 million industry this year as analysts predict a growth rate of 15 percent — outpacing the double-digit gains of 2012.
IDC’s new report, China IT Security Appliance 2013-2017 Forecast and Analysis, cited a continued shift to the 3rd Platform technologies of cloud computing, big data, mobility and social. The report said the market grew 13.9 percent to $830 million last year.
“Government, telecoms and financial services remain as the three biggest purchasers, accounting for 58 percent combined,” said Pei Wang, IT security market research manager at IDC China. “Compared with the first half of 2012, the government’s share of investments has increased and telecoms’ share remains similar.”
A look at the market-segment spending in 2012 shows where these key players are focusing their investments:
- 36 percent went toward firewall and VPN technologies
- 25 percent paid for unified threat management appliances
- 12 percent was invested in intrusion defense tools
Investment in network security is being spurred by the inability of traditional security products to protect against a new class of security threats, IDC analysts found. News of growing government spending in network security follows allegations of the National Security Agency hacking into Chinese phone networks and university computers.
Economy influences investments
Spending by financial and manufacturing firms, meanwhile, isn’t keeping pace with other sectors, the report found. Analysts cited economic factors, such as the weak demand for Chinese goods that is cooling the manufacturing sector. At the same time, the country’s banking system is feeling the strain of years of rapid credit growth.
Still, steady investment in IT security in China is expected over the next several years, with analysts predicting the market will reach $1.56 billion by 2017.Tags: Security,Technology