High-profile security breaches have drawn public attention to the industry
Los Angeles, CA (PRWEB) August 14, 2012
In the five years to 2012, IBISWorld estimates that revenue for the IT Security Consulting industry has increased at an annualized rate of 10.9% to $4.9 billion. “During that time,” says IBISWorld industry analyst Kevin Culbert, “industry operators have benefited from the increasing adoption of e-commerce, growth in mobile internet access and a variety high-profile data breaches.” Companies such as Sony, Zappos and LinkedIn have been victims of recent cyberattacks and have thrust IT security into the spotlight. This factor has contributed to industry growth over the past five years, including expected revenue growth of 9.8% in 2012.
Over the past five years, an increasing number of broadband connections, coupled with exponential growth in the number of mobile connections, has contributed to the rising demand for IT security. IT security consultants have benefited from these trends because they cause more data to be stored in cloud servers. Furthermore, the rise of cloud computing and software as a service (SaaS) have caused an increasing percentage of services to be conducted online. In 2012, IBISWorld estimates that 9.4% of services will be conducted online, up from 5.9% in 2007. “As more services are completed online, industry operators have benefited from a rising number of security breaches,” says Culbert. This has ultimately contributed to increasing demand, which has caused industry profit margins to rise in spite of a rising number of industry operators. IBISWorld estimates that the number of firms operating in the IT Security Consulting industry has increased rapidly in the five years to 2012.
Industry operators have also experienced growth as a result of high-profile data breaches. Companies face the constant danger of hacking from ever-evolving threats. As soon as a computer virus is discovered, it might already have numerous variations, each requiring a different security patch. Government agencies also face similar issues, albeit with potentially higher stakes. Indeed, the world has recently entered the era of cyberwarfare. The Stuxnet virus, which targeted Iranian nuclear facilities, is proof that IT security is becoming increasingly important for government agencies around the world. Public sector demand is expected to grow in the five years to 2017, contributing to healthy revenue growth during that time. For more information, visit IBISWorld’s IT Security Consulting in the US industry report page.
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IBISWorld industry Report Key Topics
This industry offers managed IT security services, such as firewall and intrusion prevention, security threat analysis, proactive security vulnerability and penetration testing and incident preparation and response, including IT forensics.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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