Spending on IT security reaches $142.6 million
For Immediate Release
Spending on IT security reaches $142.6 million in 2003, growth fuelled by virus scares driving demand for security services, says IDC
Auckland, 23rd February 2004
At its peak the recent Mydoom virus was hitting some New Zealand businesses with over 2000 messages per minute. This sort of repetitive bombardment of businesses by external threats has certainly raised the profile of IT security in New Zealand. Since 1996 IDC has asked New Zealand CIO's what their biggest challenge will be for the coming year. In 2003, information security jumped from a typical position of around 14 to be the 4th biggest issue for CIO's, and this growing concern for security is being reflected in strong market growth.
IDC's recent report on the "New Zealand Security Solutions Market, 2003 – 2008" reveals that the IT security market in New Zealand was worth $142.6 million in 2003 and is forecast to be worth almost $450 million by 2008, a compound annual growth rate (CAGR) of 26.5% (Figure 1).
Over the forecast period, the IT security hardware market is forecast to grow the fastest with an expected CAGR of 34.7%. The services market is also forecast to grow rapidly with a CAGR of 25.1%. IT security services will contribute the most in terms of revenue to the New Zealand IT security market, accounting for at least 38.8% of the total market over the entire forecast period.
“The security software market is changing, customers are moving away from purchasing point products that address a specific concern, to more proactive, centralised and integrated solutions”, says Jane McPherson, Market Analyst. The Internet, mobile computing, corporate growth, strategic ecommerce initiatives and the use of VPN's are driving the adoption of security software. This adoption, particularly around secure content management, is set to continue in the future, fuelling growth in the security software market in New Zealand.
“The New Zealand IT security hardware market is forecast to increase over the forecast period, rising from $38.64 million in 2003 to $171.1 million by 2008", says Jane McPherson, "this growth will be driven largely by the expansion in the SME space and the uptake of broadband communications as increased network traffic could pose potential security problems”.
With the IT environment quickly moving towards one which is ‘connected anywhere and anytime’, vendors that are able to take up the role of an educator and provide integrated products and associated services will be best placed to profit in this security-conscious hardware market. Opportunities are greatest amongst large businesses, as they tend to be ahead in their adoption of IT and at present are likely to show early signs for emerging market trends. Security requirements of large businesses tend to be more intensive and often strategic.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content.
IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at . -ENDS-