News

Meeting the Needs of the Masses to Propel Broadband Security Market (2/3/2004)

The broadband security market is expected to reach $3.7 billion by 2007, as more broadband subscribers understand the added risks from broadband connectivity, reports In-Stat/MDR (http://www.instat.com). The high-tech market research firm finds that although high-speed Internet's technology-savvy early adopters had a deep understanding of the online dangers, broadband is moving into more non-technical households, where the users do not understand the threats awaiting them. However, increased availability of security solutions and added consumer and business awareness of security risks (due to media attention and scare tactics), will cause the broadband security market to grow quickly in the next couple of years, reaching near market saturation by 2008, especially for anti-virus and firewall products.

"Always on Internet access, Static IP addresses, and the higher usage of online applications make broadband technologies insecure for both consumers and businesses," says Jaclynn Anderson, a Research Analyst with In-Stat/MDR. "Additionally, broadband users are more likely to have wireless networks, telecommute, and use VPNs into corporate offices, all of which add security risks to the already vulnerable Internet subscribers." Both new subscribers and existing subscribers are cognizant of the need for some level of protection against malicious behavior. Additionally, many home and business broadband users will implement multiple layers of security by using hardware security devices with security software, or hardware security devices with security services. Part of this layering is due to the changing types of security attacks, and the inability for one product to secure against all threat types.

In-Stat/MDR has also found that:

* The most important security aspects for this market are firewall, anti-virus, and content security. These security functions can take many forms including hardware, software, or as a service or subscription business model. Additionally, this market is being attacked from traditional networking vendors, security vendors, and broadband service providers.

* The largest segment within the broadband security market is residential, mostly due to the higher penetration rate of cable and DSL technologies in the consumer market, compared with the business market.

* Security products and services for consumer and business broadband users are primarily purchased online and at retailers, though small businesses also purchase security products through Value-Added Resellers. The service provider channel, however, is expected to be a growing channel for distributing security products and services through 2008.

* Nearly 40% of consumer broadband subscribers have some type of content security solution, or parental control. This is significantly lower than the penetration rate for anti-virus protection and firewalls.

The report, "Broadband Security: Securing the Masses" (#IN0401363RC),analyzes and forecasts both the consumer and business broadband security market. Forecasts include anti-virus software, firewalls in their many form factors, and content/privacy software.

www.instat.com