Security Appliance Market Exhibits Steady Growth

Security Appliance Tracker, factory revenue rose in the second quarter of 2013 (2Q13) compared to the second quarter of 2012, while unit shipments declined over the same period, as contained in According to the International Data Corporation (IDC) Worldwide Quarterly.

Worldwide factory revenue was up 6.1% year over year to $2.1 billion in the quarter, as shipments decreased -1.5% to 483,354 units. Multi-function appliances continue to be a major factor in slower unit growth.

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Meanwhile, there is an increased security breaches on daily basis with over ten million people affected daily, according to the International Telecommunication Union (ITU).

Geographically, Canada again saw the highest year-over-year growth in the quarter (17.6%), followed by Asia/Pacific (excluding Japan), which grew at 9.9%.

The United States was also strong with 8.7% year-over-year growth, accounting for nearly 41% of worldwide factory revenue.

Western Europe slowed in the quarter and saw factory revenue rise only 0.6% when compared to 2Q12.

"Overall, the results in the second quarter show that security spending continues to be a priority for organizations," said John Grady, Research Manager, Security Products at IDC.

"Despite the increasing prevalence of virtual and SaaS-based solutions, appliances remain the predominant delivery method for network security products. Even with performance and functional requirements rising dramatically for many organizations, appliance-based products have continued to meet market demands."

Cisco continues to lead the overall security appliance market with a 16.2% share in factory revenue for the second quarter, but this was flat versus the prior year period.

Check Point held the number two spot with a 12.5% share for the quarter as revenue increased 4.0% compared to the second quarter of 2012.

Fortinet surpassed Juniper to become the third largest security appliance vendor, with a 6.2% share in the quarter.

Similarly, Blue Coat overtook McAfee to round out the top five in 2Q12. The share of "Others" grew again as Palo Alto Networks, Barracuda, Sourcefire, and Sophos continue to see impressive growth each quarter.

"With security treat evolving and cyber attacks escalating, organizations are looking for new approaches that allow them to leverage the potential of technology in a safe manner," said Ebenezer Obeng-Nyarkoh, Senior Research Analyst, Worldwide Trackers Group.

"Consequently, organizations are increasingly emphasizing reliable solutions with the integration of intelligence that can quickly solve the problem caused by data breaches."

IDC's Worldwide Quarterly Security Appliance Tracker is a quantitative tool for analyzing the global security market on a quarterly basis and is available on demand.

The Tracker includes quarterly shipments and revenues (both customer and factory), segmented by vendor, family, model, region, operating system, price band, and security functions.

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