Symantec leads the global security software space
In the last part of this series, we discussed that Symantec’s (SYMC) Enterprise Security segment got buoyancy from the company’s investment in DLP (data loss prevention) and end protection. The company commands a leadership position in this space. Also, in fiscal 1Q16, the Enterprise Security segment managed to post positive growth for the first time since 2012. We also discussed that the company’s consumer security segment continued to fall in fiscal 1Q16.
Let’s see how the security market performed on a global level in calendar 2014.
Worldwide security software revenue totaled $21.4 billion in 2014. This was a rise of 5.30% from the revenue of $20.3 billion in 2013, according to Gartner. In calendar 2014, global security software revenue grew 5.30% to $21.4 billion—compared to $20.3 billion in 2013. Although Symantec maintained its leadership, this was the second year in a row that it reported a fall in revenue.
Consumer security software and Endpoint Protection hurt the global security software market growth
According to a report published by Gartner in May 2015, the DLP market grew 15.80% on a YoY (year-over-year) basis. The healthy growth in this segment was credited to Symantec. According to the research firm, it commands approximately half of the market. However, softness in Endpoint Protection platforms and consumer security software markets marred the growth of the global security software market. Together, these two account for 39% of the total security software market.
As the above chart shows, among the top players in this space, namely Symantec, Intel (INTC), Trend Micro, and EMC (EMC), only Symantec and Trend Micro posted a negative growth rate. IBM posted positive double-digit growth.
You can consider investing in the iShares U.S. Technology ETF (IYW) to gain exposure to Symantec. IYW invests about 0.45% of its holdings in Symantec.