Network Security Appliance Market Grows to $2.3 Billion in 4Q12

UTM growth leads the way for network security appliances

By Sean Michael Kerner | Posted Mar 27, 2013
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The global market for network security appliances is growing. That's the conclusion of the latest Worldwide Quarterly Security Appliance Tracker for the fourth quarter of 2012 (4Q12) from analyst firm IDC.

According to IDC, revenue on network security appliances for the quarter grew to $2.3 billion, which is a 7.2 percent year-over-year gain. Shipments of network security appliances grew to 538,428 units, a 5.2 percent yearly gain.

The fastest growing segment of the market is the Unified Threat Management (UTM) segment, which held 35 percent of the market in 4Q12. UTM device revenues grew by 34.3 percent during the quarter, according to IDC.

Both the Firewall and the IPS parts of the network security appliance market were hit by declines, however.

IDC noted that the Firewall/VPN market declined by 2.8 percent during the quarter, though it still holds down 24 percent of total revenue for the network security appliance market. The IPS market declined by 3.6 percent as UTM competition took some share.

Vendors

As is the case in nearly every segment of the networking market, Cisco holds the top spot. Cisco's 4Q12 network security appliance share, however, fell from 17.7 percent in 2011 to 15.5 percent in 2012.

Check Point held down the number two spot with $288 million in revenue for a 12.7 percent market share, which is a 7.8 percent year-over-year growth rate.

Rounding out the top three is Juniper, which came in at $157 million in quarterly revenue, which was a 6.9 percent decline over 4Q11.

"Typical fourth quarter seasonality seemed to help the market a bit, with overall growth picking up thanks to end of year initiatives on the vendor side and budget flush on the buyer side," John Grady, research manager for Security Products at IDC, said in a statement. "Organizations continue to prioritize security within their overall IT budget. With advanced, targeted threats a growing concern, IDC expects continued high single-digit growth in the security appliance segment."

Sean Michael Kerner is a senior editor at InternetNews.com, the news service of the IT Business Edge Network,  the network for technology professionals Follow him on Twitter @TechJournalist.

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