The security software market is projected to return to double-digit growth this year as spending on the technology remains a top priority for many businesses.
Analyst Gartner forecasts that global sales of security software will grow 11.3 per cent to $16.5bn (£10.6bn) this year. Market growth slowed to seven per cent in 2009. The research firm claims the increased maturity of the market has allowed it to weather the recessionary climate far better than it did after the dotcom crash 10 years ago.
Consumer security software is expected to remain the market's biggest segment this year, with worldwide sales projected to grow 7.7 per cent to $4.2bn. Enterprise spending on endpoint protection platform is expected to grow 3.4 per cent to $3bn.
The increasing volume and sophistication of threats, coupled with the rigours of compliance requirements, earmark security as a top IT spending priority for many firms, says Gartner. Identity and access management (IAM) technologies will enjoy particularly strong sales over the next few years, according to the analyst, with global revenues projected to top $12bn by 2014.
Matthew Cheung, senior research analyst at Gartner, said: “During the next six to 12 months, products delivered as software-as-a-service (SaaS) and appliances will continue overtaking traditional software licensing as preferred purchasing methods.
"Delivery as a suite in subsegments such as enterprise endpoint security, IAM and web security will be the most prevalent product delivery types. Despite major vendors seeking to consolidate, opportunities exist for smaller niche play ers and product specialisation, and local expertise is expected to remain a valued factor.”
Principal research analyst Ruggero Contu claimed that vendors would need to cultivate a well-respected brand, built on demonstrable security credentials, to win out in an increasingly competitive market.
"Security software vendors that have a balanced mix of channel, new licence and maintenance revenue streams and flexibility in contractual terms, such as SaaS, open source and outsourcing, have the strongest options for continued growth and to even out the risk," he said.
"Shrinking discretionary spending budgets have heightened competition for new maintenance and licence revenue streams and placed a renewed emphasis on vendor performance and viability."
Infrastructure provider says international sales now make up 51 per cent of its revenue
Suzanne Chappell of TMS plans sailing venture after selling Oxfordshire-based TMS to acquisitive Chess
Withdrawal of credit insurance by some providers a 'reflection' of current challenge facing IT sector, according to MD Steve Soper
SMART's UK managing director joins Lenovo to boost SMB business