IDC Korea forecasts domestic IT security product market to grow at an annual average rate of 3.2% and surpass 500 billion won in 2019.

According to a recent forecast report on the domestic IT security product market published by IDC Korea (CEO Hong Yoo-sook), the domestic IT security product market was recorded at 437 billion won last year, a 4.1% decrease from the previous year.

It is analyzed that the network security sector, which includes firewalls and UTM devices, led the decline in the overall IT security product market by decreasing by about 10% year-on-year due to market saturation. The domestic IT security product market is projected to grow at an average annual rate (CAGR) of 3.2% over the next five years, surpassing 500 billion won in 2019 and reaching 530 billion won in 2020.

The size of the domestic IT security product market covered in the report ('Korea IT Security Products Forecast, 2016–2020', Doc #KR320316179) is calculated by analyzing the IT security product market established in Korea based on the security appliance and security software research (Tracker) regularly conducted by IDC.


▲ Domestic IT Security Product Market Forecast, 2016-2020 (Unit: Billion KRW) Source: IDC, 2016

Choi Moon-soo, an analyst at IDC Korea, noted, “While the overall IT security market contracted last year due to sluggish sales of network security equipment and passive security investments by domestic companies and institutions, the security software sector saw slight growth as the adoption of related security solutions increased as companies made efforts to prevent internal data leaks.” He added, “The environment for the security industry to thrive is in place, with the government’s implementation of the Cloud Industry Promotion Act, deregulation related to fintech, and network separation, so the future market outlook is not bleak.”

Senior Researcher Kim Min-cheol added, "Unlike in the past, recent attacks infiltrate internal networks through various routes, requiring network security from an integrated perspective rather than uniform corporate security." He continued, "The demand for pure firewalls or IDS/IPS, which traditionally handled security only for specific areas based on IP or ports, is expanding to the application layer and is being replaced by the UTM market, which includes next-generation firewalls that support integrated security."

It is necessary to pay attention to cloud-based security services such as SECaas.

Meanwhile, according to the report, the rise in sophisticated attacks has led to increased market interest in defense strategies through security monitoring. Furthermore, the Security and Vulnerability Management (SWM) market is gaining attention as more companies and organizations adopt proactive defenses based on log data analysis. Additionally, the report indicates that other security sectors, including database security, have experienced simultaneous growth due to the enforcement of the Personal Information Protection Act and mandatory secure coding.

As security is integrated into various businesses utilizing new technologies such as IoT, mobility, and fintech, and new security investments increase, these fields are expected to play a leading role in the security industry. For companies, as customer awareness of security increases, it will be essential to consider applying new security solutions to accommodate this.

Furthermore, as the domestic cloud market environment is expected to expand following the full-scale implementation of the government's Cloud Development Act, this is anticipated to present both a threat and a new opportunity in the security market. The report emphasized the need to pay attention to cloud-based security services such as SECaas (Security as a Service).