Worldwide security software revenue totaled $19.2 billion in 2012, a 7.9 percent increase from 2011 revenue of $17.7 billion, according to Gartner, Inc. Gartner said that the evolution of new threats and working practices, such as bring your own device (BYOD), is driving spending on security.
"The 2012 security market saw a continuation of increasing demand for consumer and enterprise security tools as McAfee's high growth of 37 percent boosted the overall market's growth rebound in 2012," said Ruggero Contu, research director at Gartner. "Although overall, the 2012 security market continued to grow, not all regions experienced the high double-digit growth of, for example, Eurasia, which was driven by greenfield projects and buoyant economies. As expected, Western Europe remained the laggard due to economic uncertainties and fragility and also due to the impact of dollar-to-euro conversion."
While it retained its No. 1 position in the consumer and enterprise security spaces in 2012, Symantec managed only single-digit growth of 2.6 percent to reach $3.75 billion in 2012 (see Table 1). Second-placed McAfee showed significant growth of 37 percent in 2012 to reach $1.7 billion. This was driven by a combination of organic growth, acquisitions and the indirect impact of a 2011 revenue write-down following Intel's acquisition of McAfee. In third place, Trend Micro, which spent much of 2012 accelerating the diversification of its business with cloud and virtualization platform security and advanced threat protection (ATP) offerings, recorded an overall security revenue decrease of 2.7 percent, with negative growth impacting its consumer and enterprise businesses.
*McAfee's strong growth in 2012 was partly influenced by Intel's write-down of McAfee revenue in 2011.
Source: Gartner (May 2013)
"Security continues to be a top priority across all technology categories in the SMB market. The rise of midmarket demand presents a new challenge for participants in the security space, as SMB requirements are different from those of larger enterprises," said Mr. Contu. "Security buyers from SMBs are increasingly considering security as a service as an alternative for deploying security technologies, particularly for areas such as email and Web security, which is leading to more market consolidation and more competitive pricing as established players acquire pure-play cloud-based specialists across the security landscape."
Spending on security software is also influenced by the evolution of new threats and working practices. For example, as companies increase the mobility of their workforce, this situation raises new security concerns and requirements. Growing demand for remote access requires organizations to safeguard off-premises applications and data, as well as an array of new client devices. In addition, the rapid adoption of virtualization in the SMB market is driving interest in security solutions targeting virtual environments.
More detailed analysis is available in the report "Market Share Analysis: Security Software, Worldwide, 2012." The report is available on Gartner's website at http://www.gartner.com/resId=2486015.
About Gartner
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is a valuable partner in more than 13,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 5,500 associates, including 1,402 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.
"The 2012 security market saw a continuation of increasing demand for consumer and enterprise security tools as McAfee's high growth of 37 percent boosted the overall market's growth rebound in 2012," said Ruggero Contu, research director at Gartner. "Although overall, the 2012 security market continued to grow, not all regions experienced the high double-digit growth of, for example, Eurasia, which was driven by greenfield projects and buoyant economies. As expected, Western Europe remained the laggard due to economic uncertainties and fragility and also due to the impact of dollar-to-euro conversion."
While it retained its No. 1 position in the consumer and enterprise security spaces in 2012, Symantec managed only single-digit growth of 2.6 percent to reach $3.75 billion in 2012 (see Table 1). Second-placed McAfee showed significant growth of 37 percent in 2012 to reach $1.7 billion. This was driven by a combination of organic growth, acquisitions and the indirect impact of a 2011 revenue write-down following Intel's acquisition of McAfee. In third place, Trend Micro, which spent much of 2012 accelerating the diversification of its business with cloud and virtualization platform security and advanced threat protection (ATP) offerings, recorded an overall security revenue decrease of 2.7 percent, with negative growth impacting its consumer and enterprise businesses.
Table 1. Top Security Software Vendors, Worldwide,
2011-2012 (Millions of Dollars)
|
Company
|
2012 Revenue
|
2012 Market Share (%)
|
2011 Revenue
|
2011-2012
Growth (%)
|
|
Symantec
|
3,747.1
|
19.6
|
3,652.0
|
2.0
|
|
McAfee*
|
1,680.0
|
8.8
|
1,226.0
|
37.0
|
|
Trend Micro
|
1,172.0
|
6.1
|
1,205.1
|
-2.7
|
|
IBM
|
953.6
|
5.0
|
931.3
|
2.4
|
|
EMC
|
717.6
|
3.7
|
716.1
|
0.2
|
|
Others
|
10,865.2
|
56.8
|
10,008.7
|
8.5
|
|
Total
|
19,135.5
|
100.0
|
17,739.2
|
7.9
|
Source: Gartner (May 2013)
"Security continues to be a top priority across all technology categories in the SMB market. The rise of midmarket demand presents a new challenge for participants in the security space, as SMB requirements are different from those of larger enterprises," said Mr. Contu. "Security buyers from SMBs are increasingly considering security as a service as an alternative for deploying security technologies, particularly for areas such as email and Web security, which is leading to more market consolidation and more competitive pricing as established players acquire pure-play cloud-based specialists across the security landscape."
Spending on security software is also influenced by the evolution of new threats and working practices. For example, as companies increase the mobility of their workforce, this situation raises new security concerns and requirements. Growing demand for remote access requires organizations to safeguard off-premises applications and data, as well as an array of new client devices. In addition, the rapid adoption of virtualization in the SMB market is driving interest in security solutions targeting virtual environments.
More detailed analysis is available in the report "Market Share Analysis: Security Software, Worldwide, 2012." The report is available on Gartner's website at http://www.gartner.com/resId=2486015.
About Gartner
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is a valuable partner in more than 13,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 5,500 associates, including 1,402 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.
