Worldwide security appliance market growth driven by strong UTM performance in the first half of the year, according to IDC


Sep 27, 2016

27 Sep 2016

FRAMINGHAM, Mass., September 27, 2016 – According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, the total security appliance market showed positive year-over-year growth in both vendor revenue and unit shipments for the second quarter of 2016 (2Q16). Worldwide vendor revenues in the second quarter increased 5.8% year over year to $2.75 billion, and shipments grew 15.2% year over year for a total of 659,305 units.

The Unified Threat Management (UTM) sub-market has doubled in size over the last five years and continues to be the major driver for the entire market. The UTM market generated revenues of $1.35 billion in 2Q16 for year-over-year growth of 13.4%. During the first half of the year UTM vendor revenue grew 15.7% compared to the first half of 2015 to $2.6 billion and it is the only sub-market with double-digit growth for seven consecutive years. The Intrusion Detection and Prevention (IDP) sub-market, with $402 million and 4.8% annual growth, and the Content Management sub-market, with $426 million and annual growth of 4.9%, also had a solid performance in 2Q16. The Firewall and Virtual Private Network (VPN) sub-markets experienced year-over-year declines of 6.7% and 14.6%, respectively.

Regional Highlights

In the second quarter of 2016, the United States remained the largest market with 41% of global security appliance market revenue and year-over-year growth of 6.0%. Asia/Pacific was the second largest region with 22% of total worldwide revenues and year-over-year growth of 1.7%. Western Europe accounted for 20% of worldwide vendor revenue and had annual growth of 5.9% compared to the same quarter of 2015.

"The second quarter saw growth of 5.8% led by growth in the UTM, IDP, and Messaging Security categories. UTM continues to be the only category with sustained strong growth metrics," said Elizabeth Corr, research analyst, Security Products at IDC.

Top 5 Vendors, Worldwide Security Appliance Revenue, Market Share, and Growth, Second Quarter of 2016 (revenues in US$ millions)

Vendor 2Q16 Revenue 2Q16 Market Share 2Q15 Revenue 2Q15 Market Share 1Q16/1Q15 Growth
Cisco $449 16.3% $441.64 17.0% 1.6%
Check Point $358 13.0% $325.53 12.5% 10.0%
Palo Alto Networks $334 12.1% $241.38 9.3% 38.2%
Fortinet $270 9.8% $213.35 8.2% 26.4%
Blue Coat $117 4.2% $114.69 4.4% 1.9%
Other $1,224 44.5% $1,264.60 48.6% -3.2%
Total $2,751 100% $2,601.19 100% 5.8%

Source: IDC Worldwide Quarterly Security Appliance Tracker Q2 2016, September 14, 2016


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