Strong Growth Predicted in Network Security Market and Managed Security Services Market
Network Security Market to Grow to $6.6 Billion by 2015
Managed Security Services Market to Reach $8.4 Billion by 2015
March 7, 2011 – Two new reports by Infonetics Research, Inc. and Global Industry Analysts, Inc. point to strong growth in the next three years in the network security market and the managed security services market, which includes network security.
According to the Infonetics Research report, "The story of the past 4 to 6 months has been mainstream news coverage of electronic threats, vulnerability of electronic infrastructure, and ability of networks, network security, and successful attacks to drive notoriety, black market revenue, and real-world change.”
- The worldwide network security appliance and software market grew 11%, to $5.6 billion, in 2010 over 2009.
- Infonetics forecasts the network security market to grow to $6.6 billion by 2015.
- Growth in the fourth quarter of 2010 was essentially flat (+1.7%), atypical in this market.
- Market leader Cisco's network security revenue dropped 11% in 4Q10 from 3Q10; however, Cisco's loss was #2 Juniper's and #3 Check Point's gain, up 6% and 20%, respectively.
- From Google and Amazon to the New York Stock Exchange, large companies are re-building data centers—a trend that is driving the need for new network security solutions, particularly at the very high end of the Intrusion Prevention Service market and integrated appliance market.
According to the Global Industry Analysts report, the increasing complexity of attacks is forcing companies to upgrade security systems, and they are turning to specialized service providers to manage their network security concerns. Intrusion Detection Service and Intrusion Prevention Service (IDS/IPS) represents the largest, as well as the fastest-growing managed security market.
- Managed Security Services, including Managed Network Security, represents a rapidly developing market, expected to reach $8.4 Billion by 2015.
- This market is driven by the growing ubiquity of the Internet and requirements that organizations maintain and track emails, network logs and other data.
- Significant cost reductions in Managed Security Services, due to the use of hosted security systems, have encouraged increasing adoption of MSS by small and medium businesses (SMBs).
- The Managed Security Services market is not completely immune from the effects of recession, and experienced a dip in growth rates from 2008 onward; however, despite the economy, the market reported positive performance, buoyed by enterprise efforts to contain security costs during the recession.
For more details, and links to both reports, click on the PDF button at top right.