The network security market is being driven by real and perceived threats of the unknown, according to a report by market analyst Frost & Sullivan. Media coverage of hacking and cyber-warfare, alongside users’ apprehension over their systems’ vulnerabilities will drive the market to $24.7bn by 2005 from $1.1bn last year, predicts European Network Security Software Markets. Other motivating factors include the pull exerted by the web, the rise of e-commerce and the subsequent demand for secured data.
Within the market, demand for encryption and firewall products is booming, though older technologies such as access control are declining. Encryption products, which represented 30% of security market sales last year, are forecast to reach over 43% by 2005, while access control is wilting from 24% in 1998 to a mere 8% in six years’ time. The top six players in the market are Network Associates with 12% of the business, IBM which has 9%, then Check Point with 4%, Computer Associates also with 4%, Symantec with 3% and Axent with 1%.
