IDC: Security software to top billions by 2004

Two reports from market research firm International Data Corp. (IDC) this week forecast that two different sectors of the market for corporate network security products will top US$1 billion by 2004.

Intrusion detection and vulnerability assessment products will break through the $1 billion a year revenue mark by 2003, according to a new report released Wednesday by IDC, while the three A’s, authentication, authorization, and administration, will top $7.7 billion by 2004, according to a study published Monday

Intrusion detection and vulnerability assessment software are already bringing in revenue closing in on $1 billion, with the market likely to experience a compound annual growth rate (CAGR) of 34 percent from 1999-2004, the report said. By 2004, vulnerability assessment tools will account for 54 percent of the revenues in that part of the security market, with intrusion detection making up the difference. Intrusion detection software, however, will outgrow vulnerability assessment tools, in CAGR, 37 percent to 32 percent over the same period.

The three A’s will grow from $2.8 billion in 2000 to $7.7 billion, thanks to a CAGR of 28 percent. Authentication, a field that covers secure transactions, digital certificates and PKI (public key infrastructure), will be a driving force in the growth of the market, with 2004 revenues ringing in at $1.7 billion, IDC said.

Interestingly, the growth in the intrusion detection and vulnerability assessment market will not be driven by fears of security breaches, but rather by a desire by corporate IT managers to control and be aware of the status of their networks, the study said. The 3 A’s, on the other hand, will grow due to their importance in securing e-business transactions and partnerships.

IDC, based in Framingham, Massachusetts, can be reached at +1-508-872-8200 or via the Internet at