Net security boost

The network security market increased 30% by revenue in 2004 from 2003, although software VPN and firewall revenue fell. Infonetics Research put the rise down to new viruses, malware, and increased targeted attacks.

  • E-Mail
By  Simon Duddy Published  May 1, 2005

Worldwide network security appliance and software revenue topped US$3.7 billion in 2004, up 30% from 2003, and is projected to grow to US$5.5 billion in 2008, according to Infonetics Research’s quarterly worldwide market share and forecast service, Network Security Appliances and Software. Worldwide network security revenue is up 5% between Q304 and Q404, with growth in all categories except VPN/firewall software. Revenue is expected to grow 25% to US$1.2 billion in Q405. Strong growth in the network security market is being driven by the many new viruses, malware, and targeted attacks that surface every day, compelling companies of all sizes to invest in security. Infonetics Research predicts many areas in the market will continue single and double-digit quarterly growth over the next few years. “VPN and firewall appliances are the backbone of network security, and will continue to function as such for a long time,” says Jeff Wilson, principal analyst for VPNs and security at Infonetics Research. “New technologies will appear, and often start life as standalone products, but eventually their key features will be absorbed into the multi-function VPN/firewall appliances. IPS and gateway anti-virus technology are good examples of this,” he adds. Infonetics Research’s 2003 revenue forecasts for the 2004 VPN and firewall product market, VPN and firewall appliance market, and the IDS/IPS market were all within one or two percent of actual revenue. In terms of vendor performance, Cisco remains the revenue-leader overall, with over 30% of the total network security appliances and software revenue in both Q404 and 2004, a share position they have more or less maintained since 2002. Check Point and Juniper have maintained their second and third place positions, respectively, for total worldwide revenue in both 4Q04 and 2004. Enterasys, ISS, McAfee, Nokia, Nortel, SonicWall, and Symantec all showed strong second-tier performance, with significant market share across a number of categories. The revenue break down by product type indicates that VPN and firewall appliances and software make up the majority of revenue (78% in Q404), with IDS/IPS second at 15%, and gateway antivirus third at 7%. Geographically, North America accounted for 46% of network security appliances and software revenue in Q404, with EMEA at 29% and Asia Pacific 21%.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code