August 19, 2010 —  Worldwide security software revenue is forecast to surpass $16.5 billion in 2010, an 11.3 percent increase from 2009 revenue of $14.8 billion, according to Gartner, Inc. Although the economic downturn slowed security revenue to 7 percent growth in 2009, organizations have indicated an intention to give priority to security budgets.

Gartner analysts said security software markets will weather the current economic downturn better than in 2001 and 2002, because the market conditions are dramatically different in terms of maturity, penetration, confidence in IT, and geographic and vertical mix.

The security software market continues to benefit from prioritization and demands related to compliance requirements, as well as the need to keep up with ever-increasing sophistication and volume in the threat landscape. “Security will remain one of the fastest-growing areas in the enterprise software market,” stated Ruggero Contu, principal research analyst at Gartner.

"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," Contu was quoted to say.  "Shrinking discretionary spending budgets have heightened competition for new maintenance and license revenue streams and placed a renewed emphasis on vendor performance and viability."

The consumer security software market remains the largest security software segment, with 2010 revenue projected to reach $4.2 billion in 2010, up from $3.9 billion in 2009. The endpoint protection platform (enterprise) market is the number two security software segment, with revenue on pace to reach $3 billion in 2010, up from $2.9 billion in 2009.

The security software market continues to benefit from prioritization and demands related to compliance requirements, as well as the need to keep up with ever-increasing sophistication and volume in the threat landscape.

Compliance remains an important driver across many segments, particularly user provisioning, security information and event management (SIEM) and mobile data protection.

According to Matthew Cheung, senior research analyst at Gartner, the increasingly threatening landscape with complex malware and socially engineered Trojans will push organizations and consumers to invest in endpoint security products. Identity and access management is a critical component of enterprises' security strategies. Gartner clients indicate that about 8 percent of their security budgets are currently dedicated to IAM. This area is composed of technologies with varying levels of maturity and adoption; overall, the IAM market is estimated to grow to more than $12 billion by 2014.

Additional detail is available in the Gartner report "Forecast Analysis: Security Software Markets, Worldwide, 2009-2014, 2Q10 Update."

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