The IT Security Consulting industry offers managed IT security services, such as firewall management, intrusion prevention, security threat analysis, proactive security vulnerability management, penetration testing and incident preparation and response. The industry also includes IT forensics, which pertains to the identifying, analysing and preservation of digital information, whether this is for criminal and civil proceedings or general data recovery. The COVID-19 (coronavirus) pandemic has benefited the industry by boosting the use of technology in society and therefore increasing demand for IT security consulting services. Over the five years through 2021-22, industry revenue is expected to rise at a compound annual rate of 7.6% to reach £10.2 billion, including anticipated growth of 8.6% in the current year.
The industry has performed very well over the past five years. Demand has benefited from continued technological adoption in society, which has expanded the potential downstream market for the industry. Revenue volatility has remained low, as consistent demand has been delivered from the public and private sectors over the period. The average industry margin has widened considerably and is expected to stand at 10.8% in the current year. This has been supported by wages declining as a proportion of industry revenue. Competition in the industry has risen significantly, as new firms have been drawn in by rising profitability.
The industry is demand to expand further over the next five years, with demand anticipated to remain strong. Over the five years through 2026-27, industry revenue is expected to increase at a compound annual rate of 5.8% to reach £13.5 billion. Technological innovation is likely to continue driving industry expansion and structural changes over the coming period as the Internet of Things and big data markets develop. On the other hand, developments in quantum computing may begin to pose a threat to standard industry operations.
Industry overview provided by IBISWorld.
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