Total benchmarked security revenue increased 13.7% year-to-year to $13.7B in 1H19

Security growth is in early stages as organizations continue to digitize and increase the amount of information put into the cloud

The security market remains in a state of rapid growth as the rise in the amount of data and the increased likelihood of cyber hacks and threats create high demand for security solutions built to protect enterprises and their customers. With rapid growth comes increased competition and M&A activity as vendors consolidate either to improve offerings or to expand into new geographic markets. As companies continue to execute on digital transformation initiatives, cloud security offerings and other managed security portfolios are being sought to address potential threats.

To stay on top of the latest security threats, vendors are continually improving their portfolios through launches of new products and updates to existing solutions. TBR’s benchmark captures these moves, along with other ongoing industry trends and emerging opportunities. In the 1H19 publication, TBR also looks ahead to future security topics, including emerging areas such as quantum security and commercial IoT security trends.

Acquisitions continue to reshape the security landscape, with nontraditional vendors making a larger splash in 2019

The security industry continues to undergo major consolidation as vendors target select security companies to enhance portfolios or expand security offerings into new segments. This rapid M&A activity has been a trend over the past few years, though companies that do not already specialize in enterprise security have become more involved on the acquisition front in 2019. This trend is illustrated by major announcements such as Broadcom’s plans to purchase Symantec’s enterprise security assets or VMware’s plans to spend almost $5 billion to acquire Carbon Black and Pivotal. HP Inc. even announced plans to acquire endpoint security company Bromium in 2H19, as the company looks to improve the security of its device portfolio.

The exponential growth in enterprise data as companies execute digital transformation strategies leads to a rise in demand for data protection solutions

The rise of data in the workplace is causing data security solutions to become more valuable heading into 2020. The rate of new data generated across a multitude of verticals and industries will continue to grow rapidly as AI and machine learning technologies improve. The need to protect this enterprise data from security hacks will continue to increase, opening additional revenue streams for security companies to capitalize on. IBM, Dell Technologies and Symantec are among the vendors already well positioned with established data protection portfolios. TBR expects vendors to emphasize this segment over the next few years, including through targeted M&A and solution enhancements.

TBR’s Security Benchmark is a semiannual publication that analyzes the enterprise cybersecurity market and provides insights around security revenue breakdowns, go-to-market trends and strategies, resource management investments, industry acquisitions and additional M&A activity. The benchmark covers 25 industry security vendors including IBM, Symantec, Check Point, Cisco and Palo Alto Networks, across eight security segments and three global regions.