Demand for security hardware in the UK is set to go "through the roof" as firms increasingly replace software-based security systems with all-in-one appliances.

Speaking at IDC's security conference in London, Thomas Raschke, programme manager for the analyst's security products and strategies research in Europe, was bullish about the sector and IT security spending as a whole.

"We believe that the appliance market [in the UK] is going to go through the roof in the next few years," he said.

"This is a big difference between the UK and continental Europe, particularly the Germanic countries. UK firms prefer to use security software rather than hardware.

"More and more functionality is being squeezed into appliances, both for business and the home."

Figures from IDC's latest survey suggest that security hardware spending will enjoy a 23 per cent compound annual growth rate (CAGR) by 2007 and reach a value of $1bn.

Security software is expected to see 15.4 per cent CAGR, with the strongest growth in content management products.

Jonathan Mepstead, UK regional manager at security appliance maker Fortinet, said: "This demand is being driven by the availability of broadband and fibre.

"This fuels demand for perimeter security capable of performing at high speeds. It's similar to the routing and switching market: you move from software to hardware as higher speeds are demanded."

IDC also predicted that the biometrics market is unlikely to grow significantly.

Raschke said that most of the companies that needed biometric security systems had already made purchases, leaving little demand in the sector.