Driven by continued growth in the anti-virus software market, worldwide security software revenue totalled US$7.4 billion in 2005, a 14.8 percent increase from 2004 revenue of $6.4 billion, according to Gartner. Anti-virus software revenue totalled $4 billion in 2005, and it accounted for 54.3 percent of the total security software industry.
“Security spending remained a priority for organisations in 2005, and the industry will continue to experience strong growth for the next few years, as compliance and government regulations continue to play a significant role in security spending decisions,” says Nicole Latimer-Livingston, principal research analyst at Gartner.
“Currently, the major technology trend is moving in the direction of endpoint security suites of products. The market for individual desktop security products is converging, and the market opportunity for standalone, signature-based anti-virus products, standalone anti-spyware products and standalone personal firewalls is limited. Because of the changing threat landscape, security software vendors will need to include more functionality at a more competitive price,” she adds.
Symantec continued to lead the security software market in 2005, as its market share totalled 32.2 percent of worldwide revenue. Symantec also sustained its position as the dominant vendor in the anti-virus segment, with sales accounting for 53.6 percent of the market.
The fastest growth segment within the security software market was the e-mail security boundary market. This segment grew by 34.2 percent in 2005, as revenue totalled $393.9 million in 2005. The market accounted for 7.1 percent of the total security software industry.
“The email security boundary market is volatile, both from a technology and a business operations perspective,” says Latimer-Livingston. “Email security will continue to require best-of-breed investments, and companies should consider that this market is poised for further consolidation.”
An increasing need for customers to meet compliance requirements, as well as a continued need for near-real-time awareness of external and internal threats, is driving the security information and event management market. Software sales in this sector grew by over 29 percent in 2005 to more than $281 million.
Compliance is also driving growth in the user provisioning market. This segment grew by 19.7 percent in 2005, with revenue of $753.3 million. “Regulatory compliance was the number one driver for a user provisioning implementation in the past 18 months, and it will continue to be for the next 24 to 36 months,” says Latimer-Livingston. “The needs to reduce administration costs and make operations more efficient are the next two drivers.”