Cybersecurity spending has topped $70 billion

The global cost of information security reached $19.6 billion in the fourth quarter of 2022, growing 14.5% year over year, according to a new report by Canalys. Overall, for the year, the cybersecurity market exceeded $70 billion.

Solutions offered through sales channels increased 16.2% to $18.0 billion in 2022, which is 91.8% of the entire cybersecurity industry, Canalys noted.

Direct transactions between customers and suppliers make up the remaining 8.2% of the market, but sales through this channel were down 1.8% in the fourth quarter, compared to the same period in 2021.

The largest category of spending in the period October-December 2022 is network security: sales of solutions in this segment of the market grew by 8.9% year-on-year to $5.4 billion.

Vulnerability detection tools brought vendors $4.2 billion in the quarter, up 18.2%. Identity access management spending increased 15.6% to $3.7 billion.

The top three industry players in the last quarter of last year were Palo Alto Networks, Fortinet, and Cisco with shares of 7.9%, 6.8%, and 6.1% of total revenue, respectively.

Overall, cybersecurity technology spending grew 15.8% to $71.1 billion in 2022. Shipments through sales channels increased 16.1% to $64.6 billion, which was 91.0 % of total market.

North America continues to outpace other regions in terms of total cybersecurity spending, growing 16.3% to $10.2 billion in Q4 2022.

The Europe, Middle East and Africa (EMEA) region registered an increase of 12.9%, reaching $5.9 billion in cybersecurity spending. Asia Pacific grew 11.2% to $2.7 billion, while spending in Latin America increased 14.4% to $690 million.