IDC: India's Security Market to Reach US$4.8 Billion by 2027, Software and Services to Drive Growth

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• Sakshi Grover  Email: sgrover@idc.com
• Miguel Carreon  Email: mcarreon@idc.com
• Michael De La Cruz  Email: mdelacruz@idc.com

INDIA, 22 July 2024 – According to the International Data Corporation’s (IDC) recent report, India Security Spending Forecast Update, 2023–2027, the India security market is projected to reach US$4.8 billion by 2027, growing at a compound annual growth rate (CAGR) of 14.9% during the forecast period. This marks the first time the security products segment has reported a higher CAGR than the services segment.

“India has always been a high-growth market, with hardware spending historically on the rise. However, since the pandemic, this growth has slowed as most investments have become a one-off. Conversely, services spending has been growing exponentially, particularly in managed services. The growth rate in software spending is soaring, signaling a game-changing development. Substantial investments in AI-based solutions are being made, and organizations are taking a proactive approach toward enhancing their security measures and posture amidst rising AI-based threat vectors," says Sakshi Grover, Senior Research Manager, IDC Asia/Pacific.

Businesses in India face significant security challenges amidst digital transformation efforts, the adoption of innovative technologies, changing workforce models, and an evolving threat landscape. Ransomware incidents are rising, and threats are expected to become more complex and sophisticated in 2024. However, with a stronger focus on cyber-resilience, proactive detection, and cyber-recovery, successful ransomware attacks may decrease as more organizations commit to not paying ransoms and instead invest in data recovery. This shift in mindset is also reflected in the presented forecast data.

The security services market in India is set for substantial growth, with a strong CAGR of 12.8%. Managed security services, the largest segment, will grow at a CAGR of 12%, followed by project-oriented and support services. The security software market in India is projected to grow significantly from 2022 to 2027, reflecting a CAGR of 18.5%. Segments such as data security software, endpoint security software, governance, risk management, compliance (GRC) and forensics, identity and access management (IAM) software, network security software, and security analytics software will drive this growth. The IAM software segment is expected to experience the highest growth. Network security software and security analytics software are also anticipated to grow at significantly higher CAGRs, indicating a shift towards higher adoption of AI investments.

India’s evolving regulatory landscape, including the Digital Personal Data Protection (DPDP) Act and upcoming AI regulations, presents both challenges and opportunities for businesses to establish strong data governance practices.

Staying ahead of the curve involves adopting the latest security innovations, such as Attack Surface Management (ASM), AI in Security Operations (SecOps), uplifted Managed Extended Detection and Response (MxDR), Secure Access Service Edge (SASE), and Zero Trust Network Access (ZTNA). Implementing these advanced solutions helps organizations enhance their cyber-resilience by providing comprehensive threat detection, proactive threat hunting, continuous monitoring, and robust cyber-recovery mechanisms.

Technology buyers in India should prioritize a thorough budget planning process for security investments. This includes not only focusing on traditional IT security but also recognizing the importance of securing Operational Technology (OT) and Internet of Things (IoT) environments. Identifying and addressing hidden vulnerabilities and shadow IT is crucial for comprehensive security. Investing in advanced threat detection and response solutions, and GenAI, can provide robust protection against sophisticated cyber threats.

Data listed here is from IDC's report on India Security Spending Forecast Update, 2023–2027, released in June 2024. It provides an in-depth analysis of the market's projected growth for security services, software, and hardware segments, along with a year-on-year comparison for the last five years. It highlights economic impacts, regulatory updates, and the drivers and inhibitors contributing to the market's significant growth. To learn more about this IDC report, contact Sakshi Grover at sgrover@idc.com or click HERE. For media queries, please contact Michael De La Cruz at mdelacruz@idc.com or Miguel Carreon mcarreon@idc.com.

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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

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