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STAMFORD, Conn., June 10, 2014 View All Press Releases

Gartner Says Worldwide Security Software Market Grew 4.9 Percent in 2013

Analysts to Focus on Top Security Trends at Gartner's 2014 Security and Risk Management Summits, June 23-26 in National Harbor, MD, August 25-26 in Sydney, September 8-9 in London and September 15-16 in Dubai

Worldwide security software revenue totaled $19.9 billion in 2013, a 4.9 percent increase from 2012 revenue of $19.0 billion, according to Gartner, Inc. The lower-than-expected growth was due to commoditization of key subsegments and the decline in growth for two of the top five vendors.

"The market experienced slower, but still healthy, growth in 2013. This slightly tempered growth was partly due to the increased commoditization of the endpoint security (particularly consumer endpoint software) and secure email gateway (SEG) subsegments (particularly consumer endpoint software) that in 2013 accounted for around 25 percent of the total security software market," said Ruggero Contu, research director at Gartner.

"Overall, the larger trend that emerged in 2013 was that of the democratization of security threats, driven by the easy availability of malicious software and infrastructure (via the underground economy) that can be used to launch advanced targeted attacks. This ubiquity of security threats has led organizations to realize that traditional security approaches have gaps, thereby leading them to rethink and invest more in security technology," said Mr. Contu. "The consequent involvement of the business in security purchase decisions has both a positive and negative effect on software vendor revenue. With every company becoming a technology company, more organizations are now looking to leverage a multitude of data points to become more competitive. This desire to become more digital brings with it its own challenges in terms of securing this data to prevent data breaches and to protect against advanced targeted attacks."

Although the top two vendors remained the same as last year (Symantec in first place, McAfee in second place), IBM took third place this year, displacing Trend Micro, which dropped to fourth place, although by a small margin (see Table 1). The top four vendors now account for 39 percent of the total security software market. This is the first time in many years that a broad portfolio vendor such as IBM (that is, not a pure-play security vendor) has been able to enter the top three.

Table 1. Top Security Software Vendors, Worldwide, 2012-2013 (Millions of Dollars)

Company

2013 Revenue

2013 Market

Share (%)

2012 Revenue

2013-2012

Growth (%)

Symantec

3,737.6

18.7

3,747.1

-0.3

McAfee

1,745.3

8.7

1,680.0

3.9

IBM

1,135.8

5.7

953.6

19.1

Trend Micro

1,110.2

5.6

1,172.0

-5.3

EMC

760.0

3.8

717.6

5.9

Others

11,483.1

57.5

10,766.2

6.6

Total

19,972.0

100.0

19,036.5

4.9

Source: Gartner (May 2014)

From a regional perspective, the top three regions ranked by year-over-year growth were Emerging Asia/Pacific (12.8 percent), Greater China (11 percent) and Eurasia (9.3 percent). There are many factors in regards to the high growth in these regions — fast-growing regions start off from a smaller base when compared with more mature markets; some of these regions have a strong presence of local or regional vendors, which has presented unique challenges to established vendors as they plan their go-to-market strategies for these regions, particularly Greater China; the good growth in China's consumer security market is primarily due to the inclusion of advertising revenue sold through free endpoint security software, which is a popular revenue generating method for vendors in the China market.

The three largest regions (North America, Western Europe and Mature Asia/Pacific) accounted for 83 percent of the total security software market in 2013, but displayed a cumulative growth of 4.1 percent, which is slightly below the market average of 4.9 percent.

"The slower-than-average growth for security software in mature markets is due to the saturation of key segments of the technology market and the highly competitive nature of security deals, driven by an expansion of vendor capabilities into adjacent areas and the continuation of mergers and acquisitions (M&As)," said Mr. Contu. "Additionally, the high penetration rate of consolidated and mature technology areas such as consumer security software, endpoint protection and secure email gateway, has resulted in increased pricing pressure, along with the bundling of capabilities in suite offerings in the identity and access management (IAM) space (user provisioning [UP] and Web access management [WAM]), which leads to a slowdown in discrete new license revenue."

More detailed analysis is available in the report "Market Share Analysis: Security Software, Worldwide, 2013." The report is available on Gartner's website at http://www.gartner.com/doc/2748017.

About Gartner Security & Risk Management Summit

Gartner analysts will take a deeper look at the outlook for security solutions at the Gartner Security & Risk Management Summits taking place June 23-26 in National Harbor, Maryland, August 25-26 in Sydney, Australia, September 8-9 in London, U.K and September 15-16 in Dubai, UAE. More information on the U.S. event can be found at www.gartner.com/us/securityrisk. Details on the Australia event are at http://www.gartner.com/technology/summits/apac/security/. More information on the U.K. event is at http://www.gartner.com/technology/summits/emea/security/. Details on the Dubai Summit are at http://www.gartner.com/technology/summits/emea/security-dubai/.

Members of the media can register for press passes to the Summits by contacting christy.pettey@gartner.com (U.S.), susan.moore@gartner.com (Sydney), laurence.goasduff@gartner.com (London) or sony.shetty@gartner.com (Dubai)

Information from the Gartner Security & Risk Management Summits 2014 will be shared on Twitter at http://twitter.com/Gartner_inc using #GartnerSEC.

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