Antivirus Software a Big Business. Surprised?

The antivirus software business is big and it’s only getting bigger.

Gartner numbers illustrate the market reaped $4 billion dollars worth of business in 2005, a 14 percent jump over the year before. Three vendors benefit the most from that growth, representing 86 percent of the market’s revenues, but that’s about to change.

Symantec accounts for nearly 54 percent share, a 12 percent
revenue gain over 2004. Its next closest competitors are McAfee, which owns 19 percent of the market and earned 13 percent revenue growth, and Trend Micro, which represents 14 percent of the market on 9 percent revenue growth.

The fastest-growing antivirus vendor
however is Panda Software, which grew its 2005 revenues by nearly 24 percent
to a fourth-place overall finish with a 3 percent market share.

The real elephant in the room, however, may well be Microsoft.

The company is entering the antivirus
market with both feet this year with the introduction of Windows Live OneCare and Microsoft Antigen among other security initiatives.

“We believe that Microsoft’s entry into the antivirus market will have a
huge long-term impact on the shape of the already commoditizing consumer
desktop security markets,” Nicole S. Latimer-Livingston, principal research
analyst at Gartner, told

“Short term, I don’t
believe we’ll see an immediate substantial shift in market share.”

Latimer-Livingston expects that, on the consumer side of the equation, which accounts for 48.5 percent of the market, the
Microsoft entry may well lower the overall revenue opportunity, as it
is expected to increase price competition in the segment.

On the enterprise side, which accounts for 51.5 percent, Latimer-Livingston noted that Gartner believes that
by year end 2008, Microsoft may capture as much as 15 percent of the
market for desktop security products in firms with 1,000-plus
employees and 40 percent of the market in those with fewer than 1,000.

“Microsoft will not be a best-of-breed vendor, but that won’t matter for
many organizations.” Latimer-Livingston said.

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