IDC Forecasts Worldwide Internet Security Revenue Will Exceed $14 Billion by 2005

FRAMINGHAM, MA – AUGUST 22, 2001 – The worldwide market for Internet security experienced significant growth this past year. According to IDC, all four security software markets – firewalls, encryption software, security authentication, authorization, and administration (3A), and antivirus software grew 25% or more in 2000, with the firewalls segment growing the most at 42%. Overall, worldwide Internet security software revenue jumped 33% to $5.1 billion in 2000. By 2005, this market will amass more than $14 billion in revenue – a 2000-2005 compound annual growth rate (CAGR) of 23%.


"For security software vendors, the current economic instability is a double-edge sword," said Brian Burke, senior research analyst in IDC’s Internet Security program. "On the one hand, it’s forcing companies to reduce spending. On the other hand, it’s forcing companies to look for ways to cut costs, become more security proficient, and build trusted relationships with customers, partners, suppliers, and channels – which are areas security software can help."

IDC expects security 3A to be both the largest and fastest-growing segment of Internet security software. 3A revenues are expected to increase at a 2000-2005 CAGR of 28% to over $9.5 billion. This represents a 2005 market share of 67%. Antivirus software will also play an important role in the market’s growth. "The explosive growth of wireless handheld devices that are able to transmit and receive data opens the door to a whole new opportunity for virus writers and the vendors who try to stop them," Burke said.

North America will continue to account for more than half of worldwide Internet security software revenue in 2005 at 52%. Asia/Pacific will be the fastest-growing region for Internet security software, with revenues increasing at a 2000-2005 CAGR of 32%. This growth will help hike market share in this region from 12% in 2000 to 17% in 2005.

IDC recently published two documents regarding Internet security. Worldwide Internet Security Software Market Forecast and Analysis, 2001-2005 (IDC #B24773) analyzes the following software markets: security 3A, firewall software, antivirus software, and encryption software. Revenue forecasts are provided through 2005 by region and operating environment. Key trends are discussed. Total Western European IT Security – Forecast and Analysis, 2000-2005 (IDC #B24773) looks at the highly fragmented European market for security software and hardware products. Security vendors are ranked according to revenues by respective submarkets and Western European countries.

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About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

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