In dollar terms, the investment in the first quarter was US$10.4 billion.
Canalys said in a statement that the increase in the first quarter was due to the large number of workers working from hone, a change that called for increase expenditure on endpoint security, network security, Web and email security, data security, and vulnerability and security analytics.
Networking giant Cisco was the top vendor for the quarter, with 9.1% of the total investment, followed by Palo Alto Networks (7.8%), Fortinet (5.9%), Check Point (5.4%) and Symantec (4.7%).
"This is despite the criticality of protecting organisations’ data assets, operations and employees from increasing threats and vulnerabilities. Consequently, planned increases in cyber security spending over the next 12 months will be either reduced or halted completely. "
Said Canalys chief analyst Matthew Ball: “The unprecedented shift to remote working from March resulted in strong demand for endpoint security to protect new company-deployed notebooks, as well as consumer-owned devices used as part of business continuity measures.
“Endpoint security shipments increased 16.9% to represent 15.4% of the total cyber security market. This strong growth continued into Q2, as more countries implemented lockdown measures
"But network security only grew 4.0% as the hardware appliance business for some vendors was affected by supply chain constraints.
"In addition, many organisations were able to either better use existing network access through service engagements or increase capacity through additional licences rather than build out new network security infrastructure.
"Web and email security grew 13.8% year-on-year as organisations continued to expand their use of cloud-based services and software-as-a-service applications, including Office 365.”
Canalys said cyber security vendors had responded to the crisis with a variety of tactics. "Cisco extended free licences for its Umbrella, Duo Security and AnyConnect Secure Mobility Client products to both existing and new customers. It also announced its US$2.5 billion Business Resiliency Program to keep its pipeline healthy," the analyst firm said.
"Palo Alto Networks launched its financial services arm to offer extended payment terms, in addition to free 90-day trials for its GlobalProtect offerings. Juniper Networks provided free trials of its vSRX to customers to expand firewall capacity, as well as free trials of AppSec, IPS and SecIntel. Bitdefender aimed its 12-month free access offer at healthcare organisations, while Kaspersky also made its Endpoint Security offerings and Hybrid Cloud Security available free to the sector.
"Trend Micro provided its Maximum Security product free for six months to workers having to use their own devices. McAfee offered short-term three-month burst licences for its endpoint, DLP, Unified Cloud Edge and CASB (cloud access security broker) products."
Canalys research analyst Ketaki Borade said vendors who were quick to support existing and new customers during lockdown would gain the most once organisations reassessed and reprioritised their cyber security strategies.
“Workers will be more decentralised and work from multiple workplaces post-COVID-19. This has implications for the type of cyber security solutions needed, with greater emphasis on cloud security, zero-trust and policy automation," he said.
"But cyber security spending is unlikely to be completely protected from budget cuts, as organisations adjust to deteriorating fiscal conditions.
“The shift from high to low growth will affect all vendors. Private equity-backed vendors will look to cut costs further, while start-ups will accelerate their exit plans, giving larger vendors opportunities to acquire emerging technology and accelerate their strategies. Channel partners and customers will have to carefully assess the vendors they work with, in terms of support and investment to meet their evolving needs.”
Graphics: courtesy Canalys