European IT Security Products Market to Surpass $6 Billion by 2005, According to IDC
LONDON – JULY 24, 2001 – According to recent research from IDC, the total European market for IT security products (software and hardware) is set to explode from $1.8 billion last year to $6.2 billion in 2005.
"The security software market will lose a significant amount of market share to the hardware market over this period while still remaining the largest submarket," said Thomas Raschke, program manager of IDC’s European Internet Security research. Security 3A software (authorization, authentication and administration) is both the largest and fastest-growing segment of security software. Small submarket encryption will experience the second fastest software growth rate. Highly penetrated security areas like AV and firewall software are losing market share both to other security software segments and to security hardware.
Although still relatively small last year, the hardware market is expected to grow at roughly twice the rate of the software market. By year-end 2005, hardware products will contribute more than 42% revenue to the total European security market. The largest hardware submarket is the firewall appliance market while biometrics, tokens and smart cards are expected to expand dramatically by around 50%.
Top 5 European IT Security Software Vendors (Market Share)
1. Network Associates (9.7%)
2. IBM-Tivoli (9.2%)
3. Symantec (8.3%)
4. Computer Associates (7.7%)
5. Check Point (7.6%)
Source: IDC, 2001
"The next wave of security applications will be driven by an increasing reliance upon mobile devices such as cellular phones, Web phones, wireless handheld computers, and information appliances," said Raschke. "Encryption, PKI, authentication, authorization and administration will become even more critical infrastructure issues as computing goes mobile."
However, many traditional security products will not make the transition to an environment that is mainly service based with carrier-class requirements. "Many security vendors will be unable to scale their applications from the current maximum of hundreds or thousands of users to millions of users with continuous (24 x 7 x 365) global access," warned Raschke.
Total Western European IT Security – Forecast and Analysis, 2000-2005 (IDC# IS03H) provides a five year forecast for all IT security markets including software products (security 3As, firewalls, antivirus, encryption) and hardware products (firewall appliances, biometrics, token and smart cards). In addition, IDC’s report ranks security vendors both in Western Europe as well as in each of the 16 countries covered and discusses key security trends. This report is available to purchase from your local IDC office.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at emea.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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