Worldwide security software revenue totalled $21.4 billion in 2014, representing a 5.3% increase from the 2013 revenue total of $20.3 billion. That’s the main finding of the latest analysis conducted by Gartner. Low growth in endpoint protection platforms and a decline in consumer security software – segments that, taken together, account for 39% of the market – offset the strong performance of high growth areas such as security information and event management, secure Web gateway, identity governance and administration and enterprise content-aware data loss prevention.
“Overall market growth was up slightly in 2014,” explained Sid Deshpande, principal research analyst at Gartner, in conversation with Risk UK. “Even though the secure Web gateway segment experienced single-digit growth in 2014, cloud-based and hybrid secure Web gateway deployments are becoming increasingly popular. As organisations’ corporate data traffic is more exposed to the Internet and moves out of the control of traditional network security boundaries, it’s very much the case that secure Web gateway technologies continue to be an important piece of the overall security technology strategy for most organisations.”
Symantec was once again the largest security software vendor by revenue, although the company suffered its second consecutive year of revenue decline, down 1.3% to $3.7 billion (see Table 1, below).
A 6.2% decrease in the consumer security software segment (which forms 53% of Symantec’s security software revenue) was the primary cause of the decline in overall revenue growth.
Security software revenue for second-placed Intel (McAfee) grew by 4.6% in 2014 to reach a total of $1.8 billion. Revenue declines in two of its major markets (namely consumer security software and endpoint protection platforms), which form 75% of its security software revenue, balanced the healthy performance in other segments.
In third place, IBM’s security software revenue grew by 17% in 2014 to reach $1.5 billion. The company’s security information and event management software products grew in revenue terms by 21%, driven by strong adoption of this category of products by organisations and managed security service providers alike.
Table 1: Top Security Software Vendors Worldwide for 2013-2014 (Millions of Dollars)
|Company||2014 Revenue||2014 Market
Source: Gartner (May 2015)
The data loss prevention market grew by 15.8% year on year to reach $643 million in revenue in 2014 – primarily due to a decent showing from Symantec in this segment – which accounts for nearly half of the total market. The stable performance of the other top vendors in this segment also contributed to its healthy growth.
However, Gartner has commented that 2014 is the last year the market will exhibit such solid double-digit growth in its current form given the rise of channel data loss prevention and ‘data loss prevention lite’ solutions.
Ruggero Contu, research director at Gartner, stated: “Most established vendors in this space are transforming the way in which they deliver comprehensive data loss prevention capabilities, and this transition period will likely impact growth in coming years.”
The security information and event management market grew by 11% in 2014 to attain $1.6 billion in revenue terms. The focus on threat detection and response from security buyers contributed to the strong showing of this market segment.
In addition to the enterprise focus on buying on-premises security information and event management technology, providers of managed security services emerged as a strong ‘sell to’ market for providers. First-time adopters of security information and event management technology, particularly from emerging markets, also proved to be drivers of growth.
*Further detail is available in the report: Market Share Analysis: Security Software Worldwide 2014
**Additional information and trends about the security market will be discussed at the Gartner Security & Risk Management Summit 2015, which takes place on 14-15 September in London
***Information from the Gartner Security & Risk Management Summit 2015 will be shared on Twitter at http://twitter.com/Gartner_inc using #GartnerSEC