UTM and Firewall Double-Digit Annual Growth Drive the Worldwide Security Appliance Market Expansion in 2016, According to IDC

FRAMINGHAM, Mass.--()--According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, the total security appliance market showed positive growth in both vendor revenue and unit shipments for the fourth quarter of 2016 (4Q16). Worldwide vendor revenues in the fourth quarter increased 9.2% year over year to $3.2 billion, and units showed an all-time record high in shipments for a single quarter with 764,974 units and 21.4% annual growth. For the full year 2016, worldwide security appliance revenue increased 8.9% to $11.5 billion when compared to 2015, while worldwide unit shipments increased 17% for a little over 2.7 million units shipped in 2016.

The trend for growth in the worldwide market driven by the Unified Threat Management (UTM) sub-market continues, with UTM almost tripling its size over the last five years and reaching record-high revenues of $5.6 billion for 2016 and year-over-year growth of 16.7%, the highest growth among all sub-markets. The UTM market represents today almost 50% of the worldwide revenues in the security appliance market. The Firewall and Content Management sub-markets also had positive year-over-year revenue growth in 2016 with gains of 10.4% and 0.8%, respectively. The Intrusion Detection and Prevention and Virtual Private Network (VPN) sub-markets experienced weakening revenues in 2016 with year-over-year declines of 4.6% and 4.3%, respectively.

Regional Highlights

The Asia/Pacific region (including Japan) delivered 28% of the worldwide security appliance market revenue and was the major driver for spending in 2016 with double digit growth. Asia/Pacific (excluding Japan)(APeJ) had the strongest year-over-year revenue growth for 2016 at 18.7% followed by Japan with healthy 16.9%. The more mature regions of the world – the United States and EMEA – combined to provide around 65% of the total security appliance market revenue globally. Both regions had positive growth in the single-digit range, Europe, the Middle East and Africa (EMEA) showed an annual increase of 6.8%, while U.S. annual growth was 5.1% compared to 2015.

"Over the last quarter, there has been growth in every region with particularly strong growth in Asia/Pacific. Firewall and UTM continue to be the strongest areas of growth," said Elizabeth Corr, research analyst, Security Products at IDC.

 

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

Vendor      

4Q16
Revenue

   

4Q16
Market
Share

   

4Q15
Revenue

   

4Q15
Market
Share

   

4Q16/4Q15
Growth

1. Cisco       $451 .65     14 .0%     $425 .14     14 .4%     6 .2%
2. Check Point       $406 .93     12 .6%     $379 .26     12 .8%     7 .3%
3. Palo Alto Networks       $366 .86     11 .4%     $287 .55     9 .7%     27 .6%
4. Fortinet       $314 .94     9 .8%     $252 .85     8 .6%     24 .6%
5. Huawei       $157 .05     4 .9%     $88 .02     3 .0%     78 .4%
Other       $1,529 .13     47 .4%     $1,521 .18     51 .5%     0 .5%
Total       $3,226 .55     100 .0%     $2,954 .01     100 .0%     9 .2%
Source: IDC Worldwide Quarterly Security Appliance Tracker Q4 2016 March 9, 2017
 

In addition to the table above, an interactive graphic showing the worldwide market share (based on revenues) of the top 5 security appliance vendors over the previous five quarters is available here. Instructions on how to embed this graphic into online news articles and social media can be found by viewing this press release on IDC.com.

 

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

Vendor      

2016
Revenue

   

2016
Market
Share

   

2015
Revenue

   

2015
Market
Share

   

2016/2015
Growth

1. Cisco       $1,777     15 .4%     $1,710     16 .2%     4 .0%
T2. Check Point*       $1,480     12 .9%     $1,346     12 .7%     9 .9%
T2. Palo Alto Networks*       $1,367     11 .9%     $1,014     9 .6%     34 .9%
4. Fortinet       $1,108     9 .6%     $883     8 .4%     25 .5%
5. Huawei       $376     3 .3%     $221     2 .1%     70 .3%
Other       $5,402     46 .9%     $5,392     51 .0%     0 .2%
Total       $11,510     100 .0%     $10,565     100 .0%     8 .95%
Source: IDC Worldwide Quarterly Security Appliance Tracker Q4 2016 March 9, 2017

* – IDC declares a statistical tie in the worldwide security appliance market when there is less than one percent difference in the revenue share of two or more vendors.

About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

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Contacts

IDC
Lidice Fernandez, 305-351-3057
lfernandez@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com

Release Summary

Worldwide security appliance market revenues increased 9.2% year over year to $3.2 billion in Q4 2016, according to the IDC Worldwide Quarterly Security Appliance Tracker.

Contacts

IDC
Lidice Fernandez, 305-351-3057
lfernandez@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com