Administrators are opening their wallets and throwing money at the Internet security market. Spending on products such as firewalls and vulnerability assessment software is increasing at an exponential pace, according to IDC.
The worldwide market for Internet security software added almost $1 billion to its coffers and reached $3.2 billion in 1998, according to a report by International Data Corp. (IDC).
IDC’s report “Internet Security Software: 1999 Worldwide Markets and Trends” found a 43 percent increase in the Internet security software market from 1997 to 1998. In 1999, the report says, the market will jump another 39 percent to $4.4 billion.
Network Associates and Computer Associates currently have a stronghold on the Internet security software market, together accounting for one-third of its revenues, with 17.1 percent and 16.5 percent market shares, respectively. The next closest competitor, according to IDC, was Symantec Corp., which had less than half the revenues of each of the two leaders.
In 1998, the largest regional market for Internet security software was the US, representing 54 percent of the market. Western Europe presents the next largest opportunity, with 28 percent market share in 1998.
By 2001, IDC expects the Internet security software market to have more than double its 1998 value. By 2003, revenues will approach $8.3 billion, representing a solid 21 percent compound annual growth rate from 1998.
The largest segment of the Internet security software market in 1998 was authentication, authorization, and administration products, which were worth $1.6 billion. IDC predicts this segment will remain in the top spot through 2003, when its worth will exceed $3.7 billion. The firewall segment of the market is growing very fast, increasing 80 percent to $442 million from 1997 to 1998. By 2003, IDC expects firewall revenue to approach $1.5 billion.
“The increasing popularity of e-commerce is contributing to the growth of firewalls,” said Chris Christiansen, program director for IDC’s Internet Security research.
The market for intrusion detection and vulnerability assessment software is also seeing exponential growth, according to another IDC report, “Plugging the Holes in eCommerce: The Market for Intrusion Detection and Vulnerability Assessment Software.”
Revenues for these products increased 135 percent to $136 million in 1998. In 1999, IDC predicts the market will almost double, and will approach $980 million by 2003.
“As e-commerce becomes more prevalent, the demand for intrusion detection and vulnerability assessment is rising,” said IDC senior analyst Abner Germanow. “Complexity is also driving this market’s growth. Networks and systems are invariably patched and tied together in ways vendors never intended their products to be used.”
