High-profile breaches, fear of unknown threats and M&A trends driving one of cyber security industry’s fastest-growing markets

AUSTIN, Texas – October 29, 2014 − NSS Labs today published its first Market Intelligence Brief focused on the Breach Detection Systems market in addition to sixteen new in-depth Company Intelligence Briefs and Product Intelligence Briefs on the leading BDS vendors and products. NSS predicts that the BDS market will grow at an exceptional compound annual growth rate of 36.9% through 2018, reaching a total market size of $1.39 billion. These briefs are available exclusively for subscribers of NSS Competitive Intelligence Research offering launched earlier this year.

Learn more: NSS Blog – Technology of the Future: BDS Market Set to Explode

NSS’ key findings include:

  • Complex threat landscape and fear of “unknown” threats will continue to be key market drivers for BDS: As enterprises lose faith in traditional security technologies, the interest in BDS solutions for greater protection against advanced attacks has grown rapidly. With high-profile breaches occurring on a regular basis, enterprises are seeking solutions that can discover advanced attacks in the wild and search for a wider range of indicators of compromise.
  • Cost and complexity are significant BDS deployment barriers for all but the largest enterprises: Marketed as some of the most advanced security products available, BDS solutions are expensive and architecturally complex, which can put them out of reach for all but the largest enterprises. A high level of security expertise and training is required for the deployment, tuning, and management of BDS.
  • Hybrid solutions may become more prevalent in BDS deployments to expand offerings for a wider range of enterprise customers: While most BDS solutions are currently deployed as hardware appliances, many vendors are introducing virtual appliances, software as a service (SaaS), and end point options. With increased SaaS offerings and many vendors investigating partnerships with managed security service providers (MSSPs), this breadth of offering could make BDS more accessible for smaller enterprises.
  • Mergers and acquisitions remain likely as market continues to grow: In both 2013 and 2014, several vendors made acquisitions specifically to improve their ability to detect advanced threats. NSS expects that this trend will continue and that several large security vendors currently without BDS offerings will look to acquire these technologies in the next 12 – 18 months.

Commentary: Rob Ayoub, Research Director, NSS Labs

“With the ongoing stream of high profile breaches, it’s clear that the market for Breach Detection Systems will continue to be a fast growing and evolving market for the next several years,” said Rob Ayoub, Research Director at NSS Labs. “As competition increases between pure-play vendors and traditional security vendors, the BDS will continue to evolve and ultimately, customers will decide with their wallets whether they want dedicated BDS products, improved offerings from existing vendors, or hybrid solutions.”

The NSS BDS market coverage available today includes:

  • Market Intelligence Brief: Breach Detection Systems
  • Company Intelligence Brief: BlueCoat
  • Company Intelligence Brief: Check Point
  • Company Intelligence Brief: Cisco Systems
  • Company Intelligence Brief: Damballa
  • Company Intelligence Brief: FireEye
  • Company Intelligence Brief: Fortinet
  • Company Intelligence Brief: General Dynamics Fidelis
  • Company Intelligence Brief: Intel Security
  • Company Intelligence Brief: Palo Alto Networks
  • Company Intelligence Brief: Trend Micro
  • Product Intelligence Brief: Cisco (Sourcefire) Advanced Malware Protection – BDS
  • Product Intelligence Brief: FireEye Threat Prevention Platform – BDS
  • Product Intelligence Brief: Fortinet FortiSandbox – BDS
  • Product Intelligence Brief: General Dynamics Fidelis XPS – BDS
  • Product Intelligence Brief: Trend Micro Deep Discovery – BDS
  • Product Assessment Brief: BlueCoat Advanced Threat Protection – BDS
  • Product Assessment Brief: Check Point ThreatCloud Emulation – BDS
  • Product Assessment Brief: Damballa Failsafe – BDS
  • Product Assessment Brief: McAfee Advanced Threat Defense – BDS
  • Product Assessment Brief: Palo Alto Networks Wildfire – BDS