Worldwide Security Appliance Market Growth Driven by Strong UTM Performance in the First Half of the Year, According to IDC

FRAMINGHAM, Mass.--()--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

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.

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. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad. The IDC Tracker Chart app is also available for Android Phones and Android Tablets.

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

According to the IDC Worldwide Quarterly Security Appliance Tracker, worldwide revenues in the security appliance market increased 5.8% year over year to $2.75 billion in the second quarter of 2016.

Contacts

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