UK-based market research company Juniper Research predicts in a new study that total business spend in Security Information and Event Management (SIEM) will exceed US$6.4 billion globally by 2027, from just over US$4.4 billion in 2022.
Juniper Research defines SIEM as “a complex collection of technologies designed to provide vision and clarity to the corporate IT system as a whole, combining SIM (Security Information Management) and SEM (Security Event Management), which results in real-time automated analysis of security alerts generated by applications and network hardware.”
It notes that more businesses are expanding their digital footprint, post-pandemic, by leveraging data to drive commercial awareness, improve their products and enhance sales and targeting strategies.
The need to bolster security capabilities and incorporate SIEM solutions is critical, as businesses realize the value of data, and as data breaches become more frequent and sophisticated, the report highlights. Juniper Research data shows that the average cost of a data breach in 2022 is around US$4.3 million.
“Given the expanding threat landscape, correctly identifying risks and events is more important than ever. SIEM, especially in its cloud-based form, allows businesses to really focus on identifying issues within their cybersecurity processes.” said Nick Maynard, head of research at Juniper Research.
Furthermore, SIEM solutions are becoming increasingly accessible to smaller and medium-sized firms due to the emergence of cloud SIEMs and SaaS models, which reduce upfront costs such as space, maintenance, capital, and people, the report explained.
The report added that SaaS business models within SIEM are gaining traction; they are predicted to account for almost 73 per cent of global business spend on SIEM in 2027, up from only 37 per cent in 2022.
The transition from term licenses, where businesses can use the SIEM for a specific license duration, to more flexible SaaS (Software-as-a-Service) models, where SIEM solutions are purchased via monthly subscription, enables small businesses to access the previously unaffordable services.
The research also highlighted the world’s leading SIEM providers, analyzing their “revenue, the breadth and depth of their portfolios and their future prospects within the area”, said Maynard.
IBM, Rapid7 and Splunk topped the list of the best SIEM vendors, as they scored high on their “successful analytics platform and ease of integration” that seek to appeal to smaller businesses with less experienced cybersecurity teams.
While the growth in SIEM spend is an opportunity for newer vendors to break into the market with SaaS-based models, SIEM vendors need to be careful to not leave behind larger enterprises that still prefer term licenses, the report warned.
The full report is available for purchase here.