Global Network and Application Security Testing Market An Overview of Emerging Trends and Growth Opportunities For Test Solution Vendors
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1 Global Network and Application Security Testing Market An Overview of Emerging Trends and Growth Opportunities For Test Solution Vendors May 2013
2 Contents Section Slide Numbers Executive Summary 4 Market Overview 9 Network Security Testing Market - External Challenges: Drivers and Restraints 16 Forecast and Trends 28 Market Share and Competitive Analysis 46 Application Security Testing Market 50 External Challenges: Drivers and Restraints 55 Forecast and Trends 66 Market Share and Competitive Analysis 75 The Last Word 78 Appendix 81 3
3 Executive Summary The global network security testing market generated revenue of $ million in 2012, amounting to a growth of percent over the previous year. On the other hand, the global application security testing market generated revenue of $ million with a total shipment of thousand units in Going forward, there will be a sharp increase in the number of zero-day attacks targeted at governments, large enterprises, and the banking and financial sectors. Industry experts agree that the techniques hacktivists, members of organized crime, and government spies use for espionage are gaining in sophistication. In recent years, numerous high-profile security breaches and sophisticated attacks have greatly increased awareness of security concerns. These attacks indicate a shift in attacker profiles and have spiked security awareness. Today, attackers have the resources and know-how to string together zero-day attacks to work their way from the Internet into databases or process controls. Governments and businesses are rapidly adopting the latest security testing methodology to harden systems against Advanced Persistent Threats (APT) attacks. 5
4 Executive Summary Market Engineering Measurements Network Security Testing Market: Global, 2012 Market Overview Market Stage Market Revenue Market Size for Last Year of Study Period Base Year Market Growth Rate Growth $ M $ M (2012) (2016) Compound Annual Growth Rate Customer Price Sensitivity Degree of Technical Change Market Concentration (CAGR, ) (scale:1 [Low] to 10 [High]) (scale:1 [Low] to 10 [High]) (% of market share held by top 2 companies) Decreasing Stable Increasing For a tabular version click here. Note: All figures are rounded. The base year is
5 Executive Summary Market Engineering Measurements (continued) Competitor Overview Number of Competitors Number of Companies that Exited Number of Companies that Entered (active market competitors in base year) (2012) (2012) Industry Advancement Average Product Development Time Years Average R&D Spend by Product Marketing Spend as a Percent of Market Revenue Decreasing Stable Increasing Note: All figures are rounded. The base year is
6 Executive Summary Market Engineering Measurements Application Security Testing Market: Global, 2012 Market Overview Market Stage Market Revenue Market Size for Last Year of Study Period Market Units/Volume Growth $ M $ M (000) (2012) (2016) (2012) Compound Annual Growth Rate Customer Price Sensitivity Degree of Technical Change Market Concentration (CAGR, ) (scale:1 [Low] to 10 [High]) (scale:1 [Low] to 10 [High]) (% of market share held by top 3 companies) Decreasing Stable Increasing For a tabular version click here. Note: All figures are rounded. The base year is
7 Executive Summary CEO s Perspective 1 Market growth has been stimulated by sophisticated threats and attacks. 2 An increase in APTs and zero-day attacks will drive the demand for security testing. 3 The security testing market will continue to evolve, as new technologies and attacking techniques are discovered. 4 Vulnerability management is gaining visibility as an essential security technology. 9
8 Market Overview Definitions With a rapid increase in the evolution and adoption of new technologies, new security threats and vulnerabilities are emerging faster than ever before. The general awareness of security attacks and of the importance of security testing has grown significantly over the past decade. Security test solutions are used to find vulnerability or flaws in the network, application, or operating platforms that could potentially be exploited by attackers or hackers in order to cause business disruption, data leakage, or a threat of any other kind. Most businesses worldwide have employed some kind of security solution in order to prevent data or revenue loss due to internal or external attacks. As hackers and cybercrime groups continue to exploit the existing system and manage to find new ways of initiating attacks, the importance of using advanced test methodologies to detect and manage zero-day attacks and vulnerabilities becomes critical. At this point in time, network security is not tied closely with enterprises and government organizations. This circumstance will change, as we expect consolidation to take place, which will make security a third pillar of computing. In light of the current situation, cyber security cannot be separated from business operations. 11
9 Market Overview Key Questions This Study Will Answer Is the market growing, how long will it continue to grow, and at what rate? How does the competitive landscape look after a series of acquisitions that took place in 2012? What are advanced persistent threats (APT), and what is their impact on the test equipment market? What are the key trends in this market across various end-user segments and regional markets? Which competitors are leading the market and which are emerging? Which competitors are growing and why? What market segments, regional markets, or vertical markets have demonstrated the greatest growth? 12
10 Market Segmentation Total Security Testing Market Network Security Testing Firewall test equipment VPN test equipment IDS/IPS test equipment End-user Groups Service providers and carriers Network equipment manufacturers Enterprises Other end users* Application Segments R&D Manufacturing Installation and maintenance Geographic Segments North America Europe Asia-Pacific Rest of World Application Security Testing Vulnerabilities management End-user groups Financial Government Healthcare Education Note: *The others end-user segment includes several segments, such as government, universities, banks, and R&D labs, in which security test equipment is widely used. The study does not slice the revenue Forecast and trends for individual sub-segments of the Network Security and Application Security markets. 13
11 Market Segmentation (continued) The regional markets covered in this research service are listed below. North America: Canada and the United States Europe: Belgium, Denmark, Scandinavia, Germany, Italy, Luxembourg, the Netherlands, Spain, the United Kingdom, Hungary, Poland, and Ukraine Asia-Pacific: Countries on the western border of the Pacific Ocean, including those on the Indo-Chinese peninsula and the Pacific islands, and central Asia Rest of World: All other countries that are not included in the aforementioned regions, including Brazil, Russia, Mexico, Argentina, Central and South America, Caribbean Islands, the Middle East, and Africa 14
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