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Enterprise Security Market

According to a report titled '2000 Security Software Market Share' published by the Gartner Group, the total security software market grew 25 percent to $3.3 billion in 2000, up from 1999's solid growth of 22 percent.
Gartner says the downturn in the US economy starting in mid-2000 did not have an appreciable effect on the security software market.

Segments such as intrusion detection and public key infrastructure (PKI) saw very high growth as enterprises sought means to open up their networks to customers and partners while still defending their perimeter.

The Asia-Pacific region saw the strongest growth in 2000, jumping 45 percent from $145 million in 1999 to $210 million in 2000. Other regions saw somewhat slower growth, but on a much larger base. Europe and the United States, comprising 82 percent of the total security software market, saw 17 and 36 percent growth, respectively.

Network security in Asia-Pacific countries is estimated to have grown 38.9% in 2004- 2005. Technologies such as firewall and virtual private network (VPN) were strongly adopted in countries such as Australia, China, India and Japan, which includes an enormous growth in the existing security solutions. Further, the firewall and VPN markets witnessed a growth of 50.9% in 2004 and hardware solutions contributed around 84.3% of the total firewall/VPN revenues. The report further adds that with advances in VPN technology, it is set for a higher growth rate than firewalls. As Asian companies are building up Internet access and relying more on the Net to do business, security awareness is expected to be greater, says IDC.

Though India Inc. is fighting to curb unauthorized network access and protect itself from internal breaches, enterprise spending on security solutions is as low as 3-4 percent of the IT budget compared to the global standard of 8-10 percent. But there are signs of improvement emerging from the Indian market.

The Indian Enterprise security market in India showed significant growth in the year 2004-2005. The security services market had grown by 74% in 2004 - 2005 to reach Rs. 157 Crore. At the same time, growth in the Rs 203 Crore security products market was a neat 35%. Overall the Indian security market was pegged at Rs 360 Crore in 2004-2005 registering a healthy growth of 50% over the previous year making it one of the highest growing sectors for the concerned period.

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* Contributed by: -
Prasun Goel,
PGDM (2nd Year)
Symbiosis Centre for Management and Human Resource Development,
SCMHRD, Pune