Antivirus software market breaks US$4 billion barrier

The total worldwide market for antivirus software was worth a staggering US$4 billion in 2005 according to research house Gartner. The US$4 billion figure, which represented a 13.6% increase on the 2004 figure, was fairly evenly split with enterprise segment sales contributing 51.5% of the total and the consumer segment chipping in with 48.5%.

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By  Stuart Wilson Published  June 24, 2006

The total worldwide market for antivirus software was worth a staggering US$4 billion in 2005 according to research house Gartner. The US$4 billion figure, which represented a 13.6% increase on the 2004 figure, was fairly evenly split with enterprise segment sales contributing 51.5% of the total and the consumer segment chipping in with 48.5%. “There are clear indications that the consumer segment has begun to commoditise, and we expect to see a major change in product offerings and functionality that will affect this market as well as the enterprise segment,” said Nicole Latimer-Livingston, principal research analyst for Gartner. “Beyond antivirus, users also require anti-spyware capabilities and certain behaviour-blocking and firewall-type functionality for their desktops. Currently, it is necessary to buy four or more separate products. However, the market for individual desktop security products is beginning to converge, and existing vendors will move in the general direction of end-point security suites,” Latimer-Livingston added. The top three players continued to dominate the vendor landscape, grabbing some 86% of the market in 2005. Symantec led the way with 53.6% with McAfee and Trend Micro picking up 18.8% and 13.8% respectively. Fourth placed Panda Software, with 2005 sales of US$128.6m, picked up fourth spot. Panda recorded an impressive 23.8% year-on-year revenue growth rate due in large part to its success in the European small and medium business segment. Gartner’s measurement techniques are evolving to take into account new model of software delivery that are reshaping the route-to-market and billing models for antivirus solutions. The research house traditionally measure market share in terms of new licence revenue but is now also including revenue generated by updates, subscriptions and hosting, technical support and maintenance. Professional services and hardware revenue are not included in the totals. “The worldwide antivirus software market is expected to continue its double-digit growth for the short term. However, the market for stand-alone antivirus and anti-spyware products for businesses and consumers will eventually start to decline as interest for end-point security product suites continues to grow,” said Latimer-Livingston. “In addition, Microsoft’s entry into the consumer antivirus market is expected to unleash stronger price competition, which will likely lower the overall market revenue opportunity.”

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