Cyber-Security Spending Will Hit $60 Billion in 2011: PwCBy CIOinsight | Posted 12-02-2011
Global cyber-security spending is expected to reach $60 billion in 2011 and is forecast to grow 10 percent every year during the next three to five years, according to a report from PwC, "Cyber Security M&A: Decoding Deals in the Global Cyber Security Industry." The United States accounts for more than half of all deals globally that are triggered by growing cyber-threats and increasing awareness among both organizations and consumers of accelerating breaches and attacks, the report found.
Total deal activity since 2008 has exceeded $22 billion globally. In the first half of 2011, there were 37 deals accounting for more than $10 billion in value, representing a 70 percent increase compared with full-year 2010. Since 2008, the total investment in global cyber-security deals has exceeded $22 billion, an average of more than $6 billion each year.
"Deal activity in cyber-security is expected to continue to grow given the fragmentation of the market and the attractive growth outlook," said Barry Jaber, PwC s security industry leader. "Technology and IT companies are making acquisitions to differentiate their offerings, while defense firms continue to do deals to diversify away from shrinking defense budgets."
In most regions, the private sector accounts for the majority of cyber-security spending. The United States is the notable exception, where government spending is almost equal to the private sector. The strong U.S. technology industry combined with the fact that the U.S. defense and intelligence budgets are significantly larger than in any other country are key market drivers.
"Against the backdrop of heightened awareness of hacks and deliberate attacks on institutions by semi-organized groups, the cyber-security market is undergoing significant change and attracting investment from sectors that span technology, telecommunications, defense, professional services and financial investors," said Rob Fisher, PwC s U.S. technology leader for transaction services.
The U.S. market leads in value, with the majority of deals (over 50 percent) involving acquirers or targets based in North America. By comparison, Europe accounted for approximately a quarter of deal value and a third of deal volume over the same period.
To read the original eWeek article, click here: Cyber-Security Spending to Hit $60 Billion in 2011