Worldwide Antivirus Software Market Increased 13.6 Percent in 2005

Gartner: Worldwide antivirus total software revenue totaled $4 billion in 2005, a 13.6 percent increase from 2004 revenue. The market was relatively evenly split between the enterprise and consumer segments, with the enterprise segment at a 51.5 percent market share and the consumer segment with 48.5 percent of the market in 2005. There are clear indications that the consumer segment has begun to commoditize, and we expect to see a major change in product offerings and functionality that will affect this market as well as the enterprise segment. Beyond antivirus, users also require anti-spyware capabilities and certain behavior-blocking and firewall-type functionality for their desktops. Currently, it is necessary to buy four or more separate products. However, the market for individual desktop security products is beginning to converge, and existing vendors will move in the general direction of end-point security suites. The antivirus software market is a mature market with the top three vendors accounting for 86 percent of the market in 2005 (see Table 1). Symantec continued to dominate the market with a 53.6 percent market share. McAfee and Trend Micro followed with 18.8 percent and 13.8 percent market share, respectively. Although Panda Software only garnered 3.2 percent of the market in 2005, its strong presence in the European small and midsize business (SMB) market helped push it to 23.9 percent growth. Table 1 Worldwide 2005 Total Antivirus Software Revenue for All Software Segment Types (Millions of Dollars)

Company	2005	2005 Market Share (%)	2004	2004 Market Share (%)	2004-2005 Growth (%)
Symantec	2,150.4	53.6	1,915.3	54.2	12.3
McAfee	753.9	18.8	666.5	18.9	13.1
Trend Micro	555.7	13.8	509.3	14.4	9.1
Panda Software	128.6	3.2	103.9	2.9	23.8
CA	86.5	2.2	75.3	2.1	14.9
Other Vendors	340.2	8.5	263.0	7.5	29.4
Total	4,015.4	100.0	3,533.2	100.0	13.6

Source: Gartner Dataquest (June 2006) The worldwide antivirus software market is expected to continue its double-digit growth for the short term. However, the market for stand-alone antivirus and anti-spyware products for businesses and consumers will eventually start to decline as interest for end-point security product suites continues to grow. In addition, Microsoft's entry into the consumer antivirus market is expected to unleash stronger price competition, which will likely lower the overall market revenue opportunity.

Worldwide Antivirus Software Market Publ 20060621