Worldwide Market for Information Security Services To Boom
IDC predicts market could reach $21 Billion by 2005
20 September 2001
in 2000, the worldwide market for information security services grew to approximately
$6.7 billion.
By the end of 2005, IDC expects this market to more than triple to $21 billion at a compound annual growth rate of approximately 25.5% over the 2000 to 2005 period.
"The growing corporate appetite for remote LAN, Internet, extranet/intranet, and
wireless access services will drive the need for advanced information security services as technologies for circumventing network security systems continue to
keep pace with the technologies designed to defend against them" said Allan Carey, senior analyst with IDC's Information Security Services research program.
"The growth in this market will come from clients who recognize the value of
engaging third-party service providers skilled at developing customized security
strategies that solve real business problems. By implementing a best-in-class
security architecture coupled with continuous monitoring and management of the
infrastructure, security service firms enable clients to mitigate the risks associated with their business."
Research indicates the financial services sector will continue to represent the single-largest source of information security services spending, growing from $848 million in 2000 to around $2.2 billion in 2005.
Downtime equating to lost transactional revenue, the need to remain one step
ahead of fraud, and government regulations are all factors leading to the growth
forecast in the financial sector.
Regionally, analysts believe international opportunities will continue to expand, especially in rapidly growing areas such as Asia/Pacific, Latin America, and Western Europe.
According to estimates one of the fastest-growing regions of the world for information security services over the next five years will be Asia/Pacific at 29.8%. One factor influencing this growth is Internet adoption
whether via cyber cafes in China or Web-enabled wireless devices throughout the region.
Researchers say that success in regional markets will come to those firms that attain the ability to overcome technological hurdles as well as regulatory and cultural hurdles.
Although representing the smallest commercial sector in terms of services spending in 2000, the small business category (i.e., firms with 100-999 employees) will represent the fastest-growing opportunity in this sector through 2005.
As small businesses continue to transition their networks to
high-bandwidth architectures capable of handling a range of applications, from ecommerce to wireless, these organizations
will invest more aggressively in security-related services.
www.idc.com
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