India Security Software & Security Appliances Market in H1 2010

TBFSI, Telecommunications and Government verticals were the major spending sectors for security software. The web continued to be the prime source of threats. The emergence of new technologies like cloud is making cloud security a key security focus. Malware, phishing attacks to gather sensitive personal data continue to dot the security landscape. Increasing end points in the form of enterprise smartphones apart from traditional end points are also increasing the magnitude of threat perception.

On the Data Loss Prevention (DLP) front, large vendors are making considerable effort to evangelise DLP solutions and propagate their spread in the market. DLP solutions are being offered mainly by large vendors and are being pushed in the market as a part of integrated solutions. The consumer segment is price sensitive and driven by low priced offerings. Large vendors are reaching out to the consumer segment by bundling security software with branded desktops and notebooks through OEM relationships.

Mobility of employees, especially in large enterprises has brought to the forefront the need to ensure seamless and continuous operations coupled with data protection at all times. Vendors have started to take notice of this critical requirement and are offering solutions configured to address this continuity need.

India Security Appliances Market

The India Security Appliances market in 1H 2010 was valued at US$ 61 million and grew at a CAGR of 12% from 2007 to 2009. The India Security Appliances market is expected to reach US$ 180 million by 2012. The growth was driven mainly by increased spending from verticals like IT/ITeS, Government and BFSI.

The Unified Threat Management (UTM) solutions market is faring well due to the focus of enterprises to deal with the increased threat levels. The uptake of UTM solutions in the India Education vertical has gained traction. Vendors are offering scaled down versions of products as well as modular solutions to cater to the requirements of the price- and resource-sensitive India SMB enterprise segment.

Emerging Security Solutions: 2011 and Beyond

The security solutions that are expected to see high rates of adoption and emerge in 2011 include offerings for the cloud and virtual environments. The 'Security-as-a-Service' model will also find more takers in the coming years. The verticals that will continue to drive adoption of security solutions in 2011 would be the Banking, Financial Services & Insurance (BFSI), Telecommunication Service Providers (TSPs), government and educational institutions.