The South African IT security industry, worth R1.082 billion, is still growing, according to research firm BMI-TechKnowledge.
According to the firm`s latest findings on the local security market, the industry grew by about 16% in 2003, with that level of growth expected to continue throughout the forecast period 2003 to 2008.
"All segments - hardware, software and services - will lead growth uniformly as enterprises seek to improve their infrastructures to manage organisational risk more effectively," BMI-T says.
Security software accounts for the biggest portion of the security market, with security hardware and appliances bringing in the smallest revenue amount.
"Security services are expected to grow over the forecast period, increasing the revenue percentage contribution to the market as a whole. Software revenues will also continue to grow, but at a lesser rate than previously."
It adds that hardware is widely expected to be the favoured method of delivering security solutions, but take-up in SA will depend largely on pricing.
BMI-T found that service providers remain highly fragmented despite market consolidation, since smaller information security companies continue to emerge. However, it expects continued consolidation among the large service providers.
Among the key drivers of the growth, BMI-T lists increased e-commerce and Internet use; increasing Internet fraud; previous malicious attacks; mobile computing and wireless trends; regulations and legislation; and the speed at which threats spread.
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