According to the latest worldwide market study by Technology Business Research (TBR), total revenue for IT security hardware and software products -- including managed and hosted security services -- totaled nearly $50 billion in 2014 and will grow at an 18.9 percent CAGR to more than $118 billion by 2019.
"Customers are opening their wallets in an urgent effort to protect their data and their reputations from increasingly sophisticated attacks," said Jane Wright, senior analyst and security research lead at TBR.
According to the TBR assessment, cyber criminals and hackers are exploiting enterprise user endpoints to infiltrate and navigate customer infrastructures and steal data or disrupt business operations.
To block the attacker entry points, enterprise IT managers will increase their spending for endpoint-based advanced threat detection and response solutions, which will propel revenue growth in the endpoint security segment to an estimated 23.2 percent CAGR through 2019.
However, TBR believes that the top vendors based on endpoint security revenue will command a much smaller combined share of the segment in the future.
More vendors are emerging to address the enterprise endpoint security demands with new technologies, and TBR expects these vendors to capture larger segment shares over the next five years.
Network security revenue growth will slow during the TBR forecast period as customers focus more IT security spending outside of their increasingly porous networks.
To date, network security products account for about 25 percent of the enterprise security market revenue, but TBR believes this will decline to approximately 20 percent by 2019. Moreover, within the network security segment, they expect a major shift among some of the largest vendors.
Vendors are enhancing their security information and event management (SIEM) solutions with more advanced threat protection capabilities such as real-time detection, multi-vector analysis, behavior-based algorithms and more extensive forensics. This has created a new type of product that TBR calls "SuperSIEM."
"The improved threat detection and response capabilities enabled by SuperSIEMs will make a big difference in how well customers are protected from the attack techniques that hackers devise in the future," adds Wright.