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TIA Cybersecurity Report: Private Sector Spending Accelerates After Years of Underinvestment
Report Also Finds that Standardization will Increase Economies of Scale and Lower Cybersecurity Costs in Coming Years
Arlington, Va. (February 24, 2015) – Private sector spending on cybersecurity is accelerating and, for the first time in years, will grow faster than government spending in 2015, according to a new report issued today by the Telecommunications Industry Association. TIA, the leading association representing the manufacturers and suppliers of high tech communications networks, published the Cybersecurity and Privacy Report as part of a look at key segments of TIA’s 2014 ICT Market Review & Forecast (MR&F) – the industry’s most comprehensive data review and analysis.
The new report, which follows the release of a Cloud & Data Centers Report, offers a review of recent policy initiatives and private sector action, and provides an industry outlook.
TIA Chief Executive Officer Scott Belcher commented, “Until recently, companies treated cybersecurity like many Americans treat home security – paying little attention to attacks until they strike close to home. The spending data in our report shows that recent high-profile corporate breaches have spurred businesses into action. And while cybersecurity spending is on the rise, we also find that standardization will create economies of scale that will begin to lower costs in the coming years.”
The report finds that companies have tended to underinvest in cybersecurity, but a change of approach appears to be underway. “Instead of being relegated to being an IT issue, unrelated to basic business,” the report states, “cybersecurity is becoming a critical part of business strategy.” Reflecting this, TIA data shows a meaningful increase in private sector cybersecurity spending – after growing 11.2 percent in 2012, spending grew 14.5 percent in 2013 and is expected to grow 14.6 percent by the end of 2014.
With this acceleration, TIA projects that private sector cybersecurity spending growth (15.4 percent) will eclipse government spending growth (14.6 percent) next year for the first time since 2009. Over the next four years, private sector spending is expected to achieve a 12.6 percent compound annual growth rate, while government spending will see 11.8 percent compound annual growth rate.
Among the other key findings of the report:
• Standardization/economies of scale will lower costs. “As the cybersecurity market expands, standardization is becoming increasingly important as it allows vendors to generate solutions less expensively,” states the report. While TIA predicts spending will grow for the next four years, the growth rate will slow.
• Privacy and regulatory concerns have limited legislative action. Stating that “Consumers are increasingly concerned about the protection of their personal information, and businesses are concerned that regulations would increase costs,” the report looks at the last several years of House and Senate cybersecurity bills – largely aimed at fostering information sharing. Limited action was taken by Congress, leading the Obama Administration to take unilateral steps, including a 2013 executive order seeking to incentivize information sharing.
• New technologies offer both opportunity and risk. The TIA report notes that technological advancements such as biometrics will limit cybersecurity threats, but these systems, with their massive amounts of personal data, will become inviting targets. The proliferation of data generally – and new technologies that gather data, such as wearables and drones – has opened new opportunities for attacks. At the same time, these advancements are generating a supply response, with many new cybersecurity players and technologies quickly emerging.
The Cybersecurity and Privacy Report is now available free of charge in the TIA Store.
Copies of the full 2014 MR&F are available to members of the media.
The Telecommunications Industry Association (TIA) represents manufacturers and suppliers of global communications networks through standards development, policy and advocacy, business opportunities, market intelligence, and events and networking. TIA enhances the business environment for broadband, mobile wireless, information technology, networks, cable, satellite and unified communications. Members' products and services empower communications in every industry and market, including healthcare, education, security, public safety, transportation, government, the military, the environment, and entertainment. Visit tiaonline.org for more details.
TIA is accredited by the American National Standards Institute (ANSI), and is a proud sponsor of ANSI’s Standards Boost Business campaign. Visit www.standardsboostbusiness.org for details.