Gartner analysts are predicting the worldwide security software market will reach more than $16.5 billion in revenues in 2010.
If true, the prediction will represent an 11.3 percent increase from the $14.8 billion in revenues the security industry saw in 2009, the firm said. It also represents a roughly 4 percent bump from the 7 percent growth the market experienced between 2008 and 2009, the firm found.
"Most segments of the security software market will continue to grow over the next few years, although a significant degree of variation is expected between the more-established and less-mature technologies," said Ruggero Contu, principal research analyst at Gartner, in a statement. "Overall, security will remain one of the fastest-growing areas within the enterprise software market."
While the consumer security software market remains the largest segment with projected revenue of $4.2 billion in 2010, the market for enterprise endpoint protection platforms is number two with revenues on pace to reach $3 billion by the end of the year.
A key driver for enterprise spending is compliance, particularly when it comes to issues such as user provisioning, SIEM (security information and event management) and mobile data protection. IAM (identity access management) is also on the menu, with Gartner clients indicating about 8 percent of their security budgets are currently dedicated to IAM. Overall, the IAM market is estimated to grow to more than $12 billion by 2014, the firm predicted.
"During the next six to 12 months, products delivered as SAAS and appliances will continue overtaking traditional software licensing as the preferred purchasing methods," said Matthew Cheung, senior research analyst at Gartner, in a statement. "Delivery as a suite in sub-segments such as enterprise endpoint security, identity and access management, and Web security will be the most prevalent product delivery types. Despite major vendors seeking to consolidate, opportunities exist for smaller niche players and product specialization, and local expertise is expected to remain a valued factor."