Increasing security demands from cyber threats and changing business technologies will drive security software spend around the world, with Asia-Pacific growth outpacing the global rate, according to a new report.
Released Wednesday, the study conducted by Ovum noted that the global security software market will see "strong growth" during the next few years with revenues increasing from about US$16.8 billion in 2010 to US$23.3 billion by end-2015.
The Asia-Pacific region will experience stronger growth than the global pace, with revenues expected to grow at a compound annual growth rate (CAGR) of 10 percent to hit US$4 billion in four years' time, the research firm added. In 2010, security software expenditure in the region clocked nearly US$2.5 billion.
Ovum's principal analyst Graham Titterington said the region will enjoy faster growth because of the "pace of technological advance and growing level of security awareness".
"One of the key drivers for the region's growth is the increasing threat to enterprises from well-organized gangs from rival organizations, which want to steal valuable data for their own gains," the analyst explained.
Changing business security landscape
Additionally, changes in business technology and operations are creating new security demands, said Titterington.
"The major changes that will drive the growth of the market during the next few years are cloud computing, increased mobility and business use of social networking. The security issues these phenomena raise can be significant, and they need to be tackled accordingly," he elaborated.
Emerging trends such as greater interoperability of systems between organizations, shared user authentication systems--particularly for enterprise customers and employees of partner organization--and increasing use of virtualization technology, will also play a part in accelerating the uptake of security tools, the analyst added.
Delving into the areas of investment, Titterington said much of the enterprise spend will go into encryption software as a means to building an advanced encryption key management environment. Such software will play a key role in the fight to protect sensitive and valuable data from hackers, he noted.
"Enterprises are becoming more aware of the threat posed to them by hackers due to the increasing number of high-profile attacks on companies such as Sony. These cases are highlighting the potential damage that businesses face if sensitive and valuable data is stolen," the analyst surmised.