Security appliance market registers 10% growth

According to IDC, factory revenues totalled US$333 million, which marked an additional $30 million in sales from the same time last year.

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By  Greg Wilson Published  September 21, 2003

The worldwide security appliance market is grown 10% in the second quarter of 2003. According to numbers from IDC, factory revenues totalled US$333 million, which marked an additional $30 million in sales from the same time last year.

Another bullish area of the market was the intrusion detection market, which 29.2% year-over-year growth while the firewall/virtual private network (VPN) security appliance market underwent an increase of 7.5%.

“In contrast to statements that intrusion detection software is dead, the growth in intrusion detection appliances show that many organizations still see the value in monitoring their networks,” comments Charles Kolodgy, research director for IDC's Security Products service.

“Not surprisingly, the intrusion detection appliance market has been growing as many more intrusion detection software appliances are available compared to a year ago,” he adds.

IDC largely attributes the 10% year-over-year growth for the security appliance market to the strength in the Western Europe and United States markets.

The two regions had the largest year-over-year growth rates at 13.5% and 12.4%, respectively. Asia/Pacific and Japan both showed weakened sales revenues from 2Q02, with Asia/Pacific (excluding Japan) experiencing the largest decline at 11.3%.

The Japanese market fell just 1.7%.

Cisco has retained its number one position in the security appliance market, despite of minimal 1% decline in year-over-year revenue growth and loss of market share. Out of the top five vendors, NetScreen had the largest year-over-year growth at 92% and since 2Q02, has increased its market share by 7.1 percentage points.

Nokia has held the number 3 position since the first quarter of 2003, following closely behind NetScreen in 2Q03 by only three market share percentage points. SonicWALL and WatchGuard continue to hold the fourth and fifth positions.

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