Enterprise Security Market to Exceed $22 Billion in 2012: Canalys

By Nathan Eddy  |  Print this article Print

The analyst firm also announced its summary of top trends for the SMB IT security market in 2012.

Canalys announced the results of its latest enterprise security forecasts, indicating that total investment is expected to grow 8.7 percent year-on-year in 2012 to reach a market value of $22.9 billion worldwide. Currently accounting for 11.3 percent of the total market, the antivirus (AV) segment will remain one of the strongest parts of the security industry next year, and is expected to increase by 6.8 percent year-on-year. Though a mature technology, AV software continues to drive revenue for many resellers, both large and small. It is the first step most small to medium-size businesses (SMBs) take in securing their infrastructure, the report noted.

Moving forward, Canalys anticipates that results in the SMB market will define security vendor leadership. Smaller vendors are working to displace Symantec, McAfee and Trend Micro in this segment, thanks to their noted reputations in the consumer space. Kaspersky Lab, one of the fastest growing AV vendors, is using its strong retailer relationships and powerful consumer brand to successfully confront incumbents, for example. Other vendors, such as Panda Security, F-Secure, ESET and AVG, are increasingly gaining market share, posing a threat to top-tier vendors.

"Demand for AV technologies varies depending on customer size," said Canalys research analyst Nushin Hernandez. "SMBs are typically looking for base-level protection from online threats, while larger organizations generally have clear security strategies in place. SMBs do not see themselves as targets for hackers, and many do not invest in full perimeter security. What they fail to realize is that security risks to businesses of all sizes are prevalent. The need to secure sensitive data is more critical than ever."

The analyst firm also announced today its summary of top trends for the SMB IT security market in 2012, predicting consumer buying patterns and behaviors will dominate SMB security spending. The report said many small companies both are price-sensitive and lack an understanding of the real security threats to their businesses and many SMBs mistakenly equate AV technology deployment with full protection from threats.
Vendors will increasingly sell solutions through their online stores. Symantec is now offering up to 1,000 licenses through its online store, followed by McAfee at 250. Sophos allows the purchase of up to 199 licenses and Trend Micro and Kaspersky Lab up to 50 each. "This is a strategic move to gain share in the high-volume, low-value end of the market, as many SMBs buy online," the report noted.