IDC｜China's IT Security Software Market Grew by 4.7% in 2023
7 submarkets
Beijing, May 13, 2024 - According to the latest "China IT Security Software Market Tracker Report, 2023H2" released by IDC, the total revenue of Chinese IT security software vendors in the second half of 2023 was approximately 16.98 billion yuan (about 2.35 billion US dollars), a year-on-year increase of 2.7%. Combining the full-year data, the scale of China's IT security software market for the whole of 2023 reached 27.79 billion yuan, a 4.7% increase from 2022.
The security software market, as defined by IDC, is composed of seven functional markets/submarkets: data security software, endpoint security software, identity and access management software, software security gateways, security analytics and intelligence, response and orchestration software, and others.
Key vendor performance in China's security software market/submarkets in 2023 is as follows:
Overall, the performance of China's security software market in 2023 is summarized as follows:
Due to a sluggish economic environment, user investment in security continues to contract, and the security software market has been affected by this, with a year-on-year growth rate slowing to 4.7%, which is below expectations. The government, finance, and telecommunications industries remain the sectors with a larger proportion of investment in security software.
In 2023, the data security market grew by 10.2% year-on-year. In terms of application, it has gradually evolved from managing various objects of data assets to the full lifecycle security of data circulation. The deployment of data security products has also gradually shifted from single-product categories such as DLP and database auditing and protection to platform-based solutions and comprehensive data security protection capabilities. After the initial classification and grading, and consulting planning, the data assets and protection requirements have become clearer, and the data security market is gradually maturing.
In 2023, the software security gateway market grew by 7.5% year-on-year. With the advancement of digital transformation, the cloud infrastructure construction of major cloud vendors is continuously improving, and more and more users are migrating their businesses to the cloud. The scale of cloud assets is expanding rapidly, and the scenarios are becoming more diversified and complex. Security product solutions aimed at the cloud are continuously applied, which will further drive the growth of the software security gateway market.
Zhao Yi, Senior Research Manager at IDC China, stated that in 2023, compared to the slight contraction of the security hardware and security services market, the security software market still achieved positive year-on-year growth, and the market size is gradually surpassing that of the security hardware market. However, it is also affected by the overall contraction of users' IT investment, causing the growth rate of the security software market to slow down. As the application solutions of security software in various functional markets gradually mature, and users consider their own security investment perspectives, the scenarios for the use and deployment of security software products will continue to expand, and the scale of the security software market is expected to increase further. IDC will continue to track and study the changes in China's IT security software market to provide support for the industry.
