Global software security market grew 3.7% to $22.1 bn in 2015: Gartner

Smaller software security firms are providing niche solutions that are eating into revenues of top players in the segment

As data and information security becomes critical for the survival of enterprises globally, a growing number of small software security companies are eating into the revenue of the big players.

A report by Gartner  said the global software security market revenue touched $22.1 billion in 2015, up 3.7 per cent from a year ago. The combined market share of the top five vendors was down 3.1 percentage points from 2014 to 37.6 per cent. The top five vendors, Symantec, Intel, IBM, Trend Micro and EMC, also posted a collective decline of 4.2 per cent, year on year, in 2015 as the rest of the market rose 9.2 per cent.

“The below-market growth by these large vendors with complex product portfolios is in contrast to the growth of smaller, more specialised, security software vendors,” said Sid Deshpande, principal research analyst at Gartner.

Security information and event management (SIEM) remained the fastest growing segment in 2015, with 15.8 per cent growth, while consumer security software showed the sharpest decline at 5.9 per cent, year on year, the report noted.

Symantec maintained the number one position despite the company facing its third consecutive year of revenue declines and its highest decline in revenue, 6.2 per cent to $3.4 billion, over a three-year period, the report said.

Intel’s security software revenue also declined in 2015, with revenue falling 4.1 per cent to $1.75 billion.

IBM was the only one of the top five vendors to post growth in security software revenue of 2.5 per cent to $1.45 billion in 2015, driven by its positive performance in the SIEM segment and its significant services business.