Mobile Security Market: Preparing for Dynamic Growth

Mobile Security Market: Preparing for Dynamic Growth

A new study found that an increasing market for mobile security products, including anti-virus, virtual private networks (VPN), data and file encryption and mobile identity management applications, is expected to reach almost $5 billion, installed in 247 million phones by 2011.

Juniper Research, specialists in providing quality analytical research reports and consultancy services to the telecom industry, gathered information from some of the fastest growing mobile security providers to gain insight into the current and future market. The factors influencing the new market include:

The security risk of identity theft
Unauthorized access by mobile devices to corporate networks
A growing threat of mobile viruses and malware
State legislation and corporate governance
Increased dependence of mobile phone users on storage and delivery of critical data.

The secure mobile content sector, including anti-virus, anti-spam, anti-spyware and content filtering, will provide the largest mobile security growth opportunity, with 40 percent of the total market. By 2011, Mobile Biometric solutions will account for another $268 million of revenue of the total mobile identity and access management market of $1.36 billion. This is an increase over 2006 of nearly $4 billion.

Alan Goode, author of the report, said, "Initially driven by the data hungry mobile business user who has seen the benefits of data services such as email, predominantly on their Blackberry devices, we will see mobile security products go mainstream by late 2008/early 2009, resulting in a doubling of revenues from 2008 to 2010."

Recent high-profile data leakage news, including social security numbers and personal data, has caused stricter rules within corporations. Security of mobile devices must be considered when developing compliance plans for regulations such as Sarbanes-Oxley (SOX). California State Bill 1386 recognizes the advantages of encrypting stored data, including mobile device data, by not requiring companies to disclose a breach if personal data is encrypted.

In 1999, President Clinton signed the Gramm-Leach-Bliley Act that regulates, via the opt-out option, the sharing of personal information about individuals from financial institutions from which they have obtained products or services. The bill requires companies to protect and take control to enforce appropriate security for customer information stored on mobile devices.

The extent of the security problem is demonstrated by the fact that the Federal Trade Commission (FTC) received 214,905 complaints of identify theft in 2003, up 40 percent from 2002. Since early 2005, the Privacy Rights Clearinhouse (PRC) reports that the personal information in over 93 million records has been compromised, many involving the credit card industry and financial institutions.

The market for mobile phone data and file encryption is evident. Credant, a major vendor, has over 2 million users of its mobile phone encryption services and the market will show continued growth for all vendors.

North America is expected to see the largest growth, from 0.5 percent in 2006, to 2.5 percent in 2011, when 45 million worldwide mobile phone users subscribing to mobile data and file encryption products. The Asia-Pacific region is projected as having the most subscribers by 2007, dominated by Japan and South Korea, however, the emerging markets of India and China are expected to exceed established markets after 2008.

With the growing use of devices like PDA's and SmartPhones with voice capabilities becoming mobile offices in the business world and estimates of 60 percent of workers having mobile access to corporate applications, the need for security can only continue to gain importance.

AccountingWEB.com Oct-9-2006
Categories: Accounting (General), Surveys, Technology, Risk Management, Trends, Security, News Archives
Times read: 2009

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