No slow down in global security sales

Network security appliance & software sales worth US$1bn

  • E-Mail
By  Published  December 23, 2006

Worldwide network security appliance and software sales rose 11% to US$1.18 billion between the second and third quarters of 2006, according to Infonetics Research’s latest Network Security Appliances and Software report. There were no signs of growth slowing down with sales forecast to climb 39% between 2005 and 2009 to US$5.48 billion. “We expect that within the next two years almost every VPN[virtual private network] /firewall appliance sold will have some form of intrusion prevention and gateway anti-virus integrated in it, and will likely also include other content security features like anti-spam and anti-spyware,” said Jeff Wilson, analyst at Infonetics Research. Secure routers accounted for 28% of the total integrated security appliance market in the third quarter of 2006, according to Infonetics Research. Growth for SSL VPN gateways was lower at 12%, but demand is expected to increase in 2007 with growth of 44% predicted for the third quarter of next year. Revenue for IDS/IPS products meanwhile increased 8% in the third quarter. Demand for content security gateway products was also high, Infonetics Research noted in a second report entitled Network Security Appliances and Software. Category sales rose7% in Q3 to US$291million. Strong growth was predicted for the category, which is tipped to grow at a CAGR of 26% over the next five years to over US$2.1 billion in 2009. “The potential for the content security market is being hampered a bit in the very short-term by the general confusion about when to use content security gateways versus firewalls, UTMs, and IPS products, and it doesn’t help that there’s a glut of products and vendors in the segment,” said Jeff Wilson. “But many vendors — large and small, new and old — are investigating the opportunity to provide highly functional integrated appliances. So we expect to see an explosion of new vendors, products, and revenue in the next two years.” Content security appliance sales grew 14% in Q306 over Q206. Annual sales of content security appliances are forecast to surge 150% from 2005 to 2009, fuelled by innovative security features, strong performance, and reasonable prices The Europe, Middle East and Africa (EMEA) region accounted for 20% of all content security gateway revenue in 2005 in comparison to 51% in North America, and 27% in Asia Pacific.

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