Worldwide Security Software Revenue Totaled $7.4 Billion in 2005

Worldwide Security Software Revenue Totaled $7.4 Billion in 2005 Gartner: Report Provides Detailed Market Share Results by Region and Segment for the Security Software Industry. Driven by continued growth in the antivirus software market, worldwide security software revenue totaled $7.4 billion in 2005, a 14.8 percent increase from 2004 revenue of $6.4 billion. Antivirus software revenue totaled $4 billion in 2005, and it accounted for 54.3 percent of the total security software industry.

Security spending remained a priority for organizations in 2005, and the industry will continue to experience strong growth for the next few years as compliance and government regulations continue to play a significant role in security spending decisions.

Currently, the major technology trend is moving in the direction of endpoint security suites of products. The market for individual desktop security products is converging, and the market opportunity for stand-alone, signature-based antivirus products, stand-alone anti-spyware products and stand-alone personal firewalls is limited. Because of the changing threat landscape, security software vendors will need to include more functionality at a more competitive price.

Symantec continued to lead the security software market in 2005, as its market share totaled 32.2 percent of worldwide revenue (see Table 1). Symantec continued to be the dominant vendor in the antivirus segment, as its sales accounted for 53.6 percent of the market.

Table 1 Worldwide: Security Software Revenue Estimates for 2005 (U.S. Dollars)

Company	2005 Revenue	2005 Market Share (%)	2004 Revenue	2004 Market Share (%)	2004-2005 Growth (%)
Symantec	2,381.6	32.2	2,077.9	32.2	14.6
McAfee	918.1	12.4	816.3	12.7	12.5
Trend Micro	630.0	8.5	550.8	8.5	14.4
CA	438.2	5.9	398.2	6.2	10.1
IBM	299.0	4.0	280.5	4.4	6.6
Other Vendors	2,733.3	37.0	2,322.6	36.0	17.1
Total	7,400.2	100.0	6,446.3	100.0	14.8

Source: Gartner Dataquest (September 2006)

The fastest growth segment within the security software market was the e-mail security boundary market. This segment grew 34.2 percent in 2005, as revenue totaled $393.9 million in 2005. The market accounted for 7.1 percent of the total security software industry.

The e-mail security boundary market is volatile, both from a technology and a business operations perspective. E-mail security will continue to require best-of-breed investments, and companies should consider that this market is poised for further consolidation.

An increasing need for customers to meet compliance requirements, as well as a continued need for near-real-time awareness of external and internal threats, is driving the security information and event management (SIEM) market. The SIEM software market grew by more than 29 percent in 2005 to more than $281 million.

Compliance is also driving growth in the user provisioning market. This segment grew 19.7 percent in 2005, with revenue $753.3 million. Regulatory compliance was the No. 1 driver for a user provisioning implementation in the past 18 months, and it will continue to be for the next 24 to 36 months. The need to reduce administration costs and make operations more efficient is the next common two drivers.

Results by Region and Segment for the Security Software Industry Publ 20060912