Hardware Appliances Are Primary Avenue For Security Software Delivery, Says IDC
FRAMINGHAM, MA – DECEMBER 10, 2002 – Security appliances have become an integral part of Internet security programs and as more applications are offered in appliance format, it will encompass an even greater share of the market. IDC believes hardware appliances are becoming the primary avenue by which customers purchase security.
"The security appliance market is highly dynamic. It grew robustly in 2001 despite the trend of many other markets," says Charles Kolodgy, research manager for IDC's Security Products service. "IDC believes that there will continue to be new players and competition in this market because of the low entrance barriers and strong demand for different appliance products. These trends are sure to persist as the market expands and security software vendors find it a great means for software delivery."
The firewall/virtual private network (VPN) security appliance market maintained a healthy growth rate of 34% from 2000 to 2001 and exceeded the $1 billion mark in vendor revenue. The consumer market drove a good portion of that increase with a growth rate of over 200% primarily due to stronger offerings from the consumer-oriented router vendors.
The growth rate for the network intrusion detection software (NIDS) appliance market nearly doubled that of the firewall/VPN market growth at 62% in 2001. IDC also estimates that there was at least $32 million in vendor revenue from "other" security appliances in 2001. These appliances include a variety of applications such as Web intrusion protection and clientless remote access. Applications in this market also perform gateway antivirus and content management functions as well as protection of email servers.
According to IDC, software and hardware security solutions must continue to be part of a coherent enterprise security program. If software vendors' applications are unsuitable for an appliance they should then partner with an application vendor that can include the software as a complete solution. IDC believes that the market for security appliances remains strong because of the availability of a wide range of products that solve many enterprise security problems. Security appliances have become popular due to their simple means of delivering security software and have key advantages such as simple installation and troubleshooting ease.
IDC's recently released Worldwide Security Appliance Forecast and Analysis, 2002-2006: Hardware Continues to Be the Choice for Security Applications Deployment (IDC #28319) examines the market activities for security appliances including firewall/VPN, network intrusion detection (NIDS), and appliances with other security applications. This document includes the leading vendors segmented by revenue, market share, unit shipments, and price bands as well as a table of assumptions detailing factors that will positively or negatively impact this market.
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