Overall security software spending in South Africa is set to increase 9,7% year-on-year in 2014 to total $149,54-million, according to the latest South African Security Software Market 2013 to 2017 Forecast from International Data Corporation (IDC).
This represents a marginal increase on the 9,4% figure that is slated for 2013, with IDC attributing the market’s buoyancy to an increase in targeted attacks, the growing complexity of threats, the increased priority given to IT security, the impact of regulatory compliance, the consumerization of IT, and the increased online presence of companies.
IDC predicts even stronger growth for the South African security software market over the coming years, with spending set to increase at a compound annual growth rate (CAGR) of 10,1% from $136,30-million in 2013 to $201,52-million in 2017.
The market’s growth will continue to be driven by the efforts of South African enterprises to protect sensitive information such as critical corporate and customer data, especially within the telecommunications, finance, and government verticals.
“The need for better regulatory compliance and risk management, as well as the emergence of cloud, mobility, and virtualization, will lead to increased demand for security software solutions,” says Lise Hagen, research manager for software and IT services at IDC South Africa.
“This, however, creates a catch-22 situation where the austere economic climate has caused budget constraints, compelling organizations to invest in the bare minimum necessary to comply with security regulations. However, when the POPI Act comes into full effect in South Africa, organizations will have to increase their levels of software, infrastructure, and security spending.
“The passage of the act will escalate the need for regulatory compliance and risk management, which in turn will drive investment in security solutions, particularly in the areas of security and vulnerability management (SVM) and identity and access management (IAM).”
Against the anticipated increase in security software spending, IDC expects organisations to remain cautious on spending over the forecast period as exchange rate fluctuations, which are exacerbated by exposure to depressed global economic markets, have a strong impact on South African security software purchases.
As clients seek more cost-effective solutions due to such fluctuations, price-based competition will increase among vendors.
In related news, IDC’s recently released South African Security Software Market 2012 Vendor Shares report shows that the top five vendors together accounted for 59,2% of the market’s overall license and maintenance (L&M) revenue in 2012.
Secure content and threat management (SCTM) was the largest technology segment of the South African security software market, accounting for nearly three-quarters of total spending in the country. Security and vulnerability management (SVM) placed second, while identity and access management (IAM) software ranked as the third-largest category.
