Enterprise security market revenue will grow from $42 billion in 2015 to $71 billion by 2020 — at an 11.2 percent CAGR, said TBR.
“Vendors that maintain their development, sales and marketing investments will be rewarded with greater opportunities when the market resurges in 2017,” said Jane Wright, principal analyst and security research lead at TBR.
There will be marked differences in security revenue growth by geographic region. The Americas will continue to contribute nearly half of global enterprise security market revenue through the forecast period. But faster growth in EMEA and APAC will diminish Americas’ market contribution from 49.2 percent in 2015 to 48.3 percent in 2020.
TBR said customers in EMEA will accelerate security spending to adapt to new privacy and data location regulations such as the General Data Protection Regulation (GDPR). The relatively high numbers of technology companies and mobile workers in APAC will drive strong growth on a relatively small revenue base in the APAC region, with new security requirements such as those contained in the proposed Trans-Pacific Partnership agreement spurring additional customer spending.
TBR predicts that Palo Alto Networks and Fortinet will leap ahead of current market share leaders IBM and Symantec.
Palo Alto Networks earned most of its revenue to date serving large customers, and TBR expects the vendor to achieve some of its strong growth over the next five years by moving downstream to address the needs of midsize business customers.
Fortinet will move to the No. 2 market share position through its focus on network security — the largest segment of the security product market — with the cost-conscious acquisition and go-tomarket strategies that made Fortinet a profitable company since its IPO six years ago.
The greatest growth will be in the endpoint and mobile security segments of the enterprise security market, rising at CAGRs of 12.9 percent and 16.2 percent, respectively, through 2020.
Earlier barriers to endpoint and mobile security deployments including capacity and performance constraints have been lowered by new technologies that allow more security features to be contained in lighter endpoint agents as well as new cloud-based services that offload some operations from the endpoints.
TBR noted that these technologies, which have emerged in recently announced solutions from vendors such as Intel Security, SecureWorks and Webroot, are propelling the strong growth in the endpoint and mobile security segments.