Internet Security Technologies for the Changing E-Economy

Published - Aug 2002| Analyst - Steven Safran| Code - SAS006A
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Report Highlights

  • Revenues in the e-security industry reached $4.8 billion in 2001 and are expected to rise at an AAGR (average annual growth rate)of 24.8% to $14.7 billion in 2006.
  • E-security software revenues will grow from $3.5 billion in 2001 to $11.5 billion in 2006, an AAGR of 26.5%. Biometric technologiesalone will grow at an AAGR of 43%.
  • The most rapid growing e-software technology will be.
  • Expenditures for hardware will rise from $522 million in 2001 to $1.1 billion in 2006, at an AAGR of 16%.
  • E-security services category will increase to $2.1 billion in 2006, from $785 million in 2001, an AAGR of 22%. Consulting serviceswill account for about 90% of segment’s revenues.


E-business has become an accepted tool that if utilized properly, can enable companies to enhance their profitability, seek out new market opportunities and provide their customers with improved services. The growth of e-business is such that by 2006, it is anticipated that revenues will exceed $3 trillion.

However, for e-business to flourish, there must be a stable approach to security for e-business transactions and activities. Further, the approach to security must provide the ability for strategic partners, customers and employees to use e-business applications without fear of information compromise or corruption.

Clearly, the events of September 11th caused serious rethinking of IT budgets, to the extent that security has become the number one priority in a majority of corporate IT budgets and certainly in federal government IT budgets.

This BCC analysis identifies and analyzes the many facets of electronic security services and solutions, especially as they relate to electronic commerce. Further, the report quantifies revenue growth from the sales of e-security software, hardware and services from 2001 through 2006 and the applicable average annual growth percentages. Technologies that contribute to this growth will be identified and examined in detail.

This study points out trends in the e-security arena, especially in the software technology areas of expertise. In addition, this study will focus on the user market for e-security solutions and indicates market shares applicable to the providers of e-security technology.


This report provides coverage of:


  • e-security software applications and technologies, hardware and services
  • the current state of the industry
  • major providers
  • market share by software applications and technologies
  • spending growth by users through 2006 for software, hardware and services.



The methodology utilized in this study is as follows:


  • Ascertain the current state of the industry.
  • Determine those software applications and technologies upon which to base qualitative and quantitative analysis.
  • Determine major providers to be profiled.
  • Determine market share of providers by software applications and technologies.
  • Quantify spending from 2001 through 2006 by software applications and technologies.
  • Ascertain Average Annual Growth Rate (AAGR) percentages from 2001 through 2006 by software applications and technologies.
  • Apply the same approach to hardware and services spending.



The following sources were utilized in the completion of this study:


  • Company annual reports and 10K reports.
  • Company and organization press releases.
  • Company product literature.
  • Interviews with company officials of pertinent companies and organizations.
  • Material from the following organizations:
    • Biometric Consortium
    • NSA
    • FBI
    • NIST
    • The Smart Card Alliance
    • GAO



The author has written manuscripts concerning e-commerce, e-payments, smartcards, electronic money, credit and debit cards, as well as the banking industry. Further, the author has consulted on the utilization of electronic payments in the financial services, e-commerce, and transportation areas of concentration. The author also worked for a major financial services corporation in its technology sector at a senior management level.

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