Security Appliance Revenue Up 6.5% in Third Quarter, According to IDC
FRAMINGHAM, Mass., December 16, 2013 – According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, factory revenue and units rose in the third quarter of 2013 (3Q13) compared to the third quarter of 2012. Worldwide factory revenue was up 6.5% year over year to $2.2 billion, as shipments increased 0.3% year over year to 490,323 units.
Geographically, Canada again saw the highest year-over-year factory revenue growth in the quarter (12.0%), followed by Asia/Pacific (excluding Japan) which grew at 9.2%. Western Europe rebounded from a weak second quarter and saw 7.9% year-over-year growth. The United States was also strong with 5.3% growth, accounting for 39% of worldwide factory revenue.
"While growth slowed somewhat in the first two quarters of 2013, the third quarter saw a nice rebound and puts the market on pace to finish the year in strong fashion," said John Grady, Research Manager, Security Products at IDC. "While concerns about government spending and macro conditions at the regional level continue to be an issue, it's obvious that security spending, while not immune to overall budget pressures, remains a key priority for organizations. Specialized threat prevention, distributed denial of service protection, and application control continue to be key drivers for security deployments."
Cisco continues to lead the overall security appliance market with a 15.9% share in factory revenue for the third quarter, on year-over-year growth of 5.9%. Check Point held the number two spot with a 12.4% share for the quarter as revenue increased 4.6% compared to the third quarter of 2012. Fortinet remained the third largest security appliance vendor, with a 6.4% share in the quarter. Juniper saw good sequential growth over the second quarter of 2013, but declined -15.7% compared to the prior year. Palo Alto Networks surpassed Blue Coat as the fifth largest appliance vendor, with a share of 5.3% on 46.1% growth versus the prior year.
Functional Market Results
At the functional market level, the Unified Threat Management (UTM) segment saw the largest year-over-year revenue increase at 29.2% and accounted for 39.4% of security appliance revenue in 3Q13 as multi-function appliances continue to drive growth in the overall market. The Firewall market declined 15.1% year over year, but still represented 21% of security appliance revenue in the quarter. Intrusion Detection and Prevention (IDP) had another solid quarter, with factory revenue increasing 8.4% compared to the prior year period. The Content Security segment rose by 1.6% compared to Q3 2012 and accounted for 17.6% of the market.
"As security and cybercrimes continue to remain key concerns across all segments of the rapidly changing technology sector, adopting robust measures to ensure cyber security and confidence in protecting privacy, data, and information is critical," said Ebenezer Obeng-Nyarkoh, Senior Research Analyst, Worldwide Trackers Group. "As a result, businesses continue to look for cost-effective investments to secure their computing environment."
IDC's Worldwide Quarterly Security Appliance Tracker is a quantitative tool for analyzing the global security market on a quarterly basis. The Tracker includes quarterly shipments and revenues (both factory and customer), segmented by vendor, security function, product family, model, region, operating system, and price band.
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, available at iTunes, allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.
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. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.