Frost: Regulatory Compliance Drives Growth in Competitive Vulnerability Assessment Products Market
September 30, 2008 // Published as a news service by IHS
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Vulnerability assessment technology is a crucial tool for an organization to properly secure its network infrastructure, according to Frost & Sullivan.
As such, vulnerability assessment products have become a requirement of many government and industry regulations. This combination has resulted in a high-growth market that is both competitive and difficult to penetrate.
Recent analysis from Frost & Sullivan of the world vulnerability assessment products market found earned revenues of $297.5 million in 2007, with estimates to reach just under $1 billion in 2014.
"Vulnerability assessment products are important tools that help organizations achieve and demonstrate compliance with government and industry regulations," said Frost & Sullivan research analyst Chris Rodriguez.
"Growth in this market has traditionally been driven by the fear of penalty, and will be further spurred by renewed focus on existing laws and passed deadlines."
Existing regulations provide a set of guidelines that an organization must meet; most laws directly require a vulnerability management system. Analysts said this has primarily affected government organizations, financial institutions and retailers, resulting in high adoption rates across every vertical market.
However, vulnerability assessment products have been around for a long time, considering the high rate of change in technology markets. Analysts said as this market matures, there will be less competition based on innovative features. Competing solely on price, in a period of slowed economic growth, is a dangerous proposition.
"The vulnerability assessment products market is starting to show symptoms of commoditization," said Rodriguez. "In this market, it is vital to differentiate and innovate through new features or business models."
Vulnerability assessment products are well-established in terms of what customers expect, but vendors must continue to innovate. Analysts said vendors that offer on-demand services through internal development or partnerships have been very successful.
Source: Frost & Sullivan.