Security software market to hit $14 billion by 2005

The worldwide market for Internet security experienced significant growth this past year and is predicted to grow to a whopping $14 billion by 2005.

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By  Matthew Southwell Published  September 5, 2001

The worldwide market for Internet security experienced significant growth this past year, according to IDC. The analyst house reported that all of the security software markets - firewalls, encryption software, security authentication, authorisation, administration and anti-virus software grew 25% or more in 2000, with the firewalls segment growing the most at 42%.

Overall, worldwide Internet security software revenue jumped 33% to $5.1 billion in 2000. By 2005, this market will amass more than $14 billion in revenue - a 2000-2005 compound annual growth rate (CAGR) of 23%.

"For security software vendors, the current economic instability is a double-edge sword," said Brian Burke, senior research analyst in IDC's Internet Security program. "On the one hand, it's forcing companies to reduce spending. On the other hand, it's forcing companies to look for ways to cut costs, become more security proficient, and build trusted relationships with customers, partners, suppliers, and channels - which are areas security software can help."

Growth is expected to be driven by the 3A, anti-virus and mobile specific market segments. "The explosive growth of wireless handheld devices that are able to transmit and receive data opens the door to a whole new opportunity for virus writers and the vendors who try to stop them," said Burke.

North America will continue to account for more than half of worldwide Internet security software revenue in 2005 at 52%. Asia/Pacific will be the fastest-growing region for Internet security software, with revenues increasing at a 2000-2005 CAGR of 32%. This growth will help hike market share in this region from 12% in 2000 to 17% in 2005, says IDC.

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