Security software revenues to rise by 11.3 percent in 2010 -

Revenue in the global security software industry is forecast to rise by 11.3 percent to $16.5 billion in 2010, according to analysts at Gartner.

The prediction sees a significant increase from its 2009 revenue, which was $14.8 billion. In that year, which was one of the worst in the worldwide recession, security software revenue growth slumped to seven percent, leading some to believe that it was in for an even more dire 2010.

Gartner analysts, however, said that the market conditions now are dramatically better than they were in 2001 and 2002, when the security software industry suffered a downturn. They attributed the continuing growth to market maturity, penetration, confidence in IT, and geographical and vertical mix.

“Security software vendors that have a balanced mix of channel, new license and maintenance revenue streams and flexibility in contractual terms, such as software as a service (SaaS), open source and outsourcing, have the strongest options for continued growth and to even out the risk,” said Ruggero Contu, principal research analyst at Gartner. “Shrinking discretionary spending budgets have heightened competition for new maintenance and license revenue streams and placed a renewed emphasis on vendor performance and viability.”

The consumer sector of the security software market is the largest element, with growth of $4.2 billion in 2010 expected, up from $3.9 billion in 2009. The enterprise market, the second largest sector, will see revenue of $3 billion, up from $2.9 billion in 2009.

Identity and Access Management (IAM) software is a leading element of the enterprise sector and is set to become an even more vital part in years to come. Gartner revealed that its clients spend around 8 percent of their security budgets on IAM software, and it predicts that the IAM market revenue alone will grow to over $12 billion by 2014.

“Most segments of the security software market will continue to grow over the next few years, although a significant degree of variation is expected between the more-established and less-mature technologies,” Contu said. “Overall, security will remain one of the fastest-growing areas within the enterprise software market.”