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EMEA security appliance market in slight decline

IDC notes a 2.2% year-on-year decline in revenue for Q1 2015

EMEA security appliance market in slight decline
Russia's double-digit decline contributed to the regional contraction

The EMEA security appliance market reached $781.07 million over the last quarter, a moderate 2.2% year-on-year decline, according to IDC's EMEA Quarterly Security Appliance Tracker.

Shipments increased by 1.3% year-on-year to 175,145 units, and IDC predicted that, over the next five years the security appliance market will accelerate at a compound annual growth rate of 5.4%, reaching $4.39 billion (923,342 units) by the end of 2019.

Unified threat management (UTM) appliances were the only product category that increased in value in Q1 2015, expanding 10.7% year-on-year. As a result, the value share of UTM appliances reached 54.4% of the total. Over the next five years, UTM will remain the largest product category, gradually growing to about 57% by 2019, IDC said.

Cisco lost its long-lasting leadership position on the overall security appliance market. Aggressive product development and the growing focus on UTM appliances helped Check Point to become the number-one security vendor with 18.9% value share in Q1 2015. Despite a broad security product portfolio and major reputation as an IT security expert, Cisco exhibited degrading sales and ended up second with 16.3% value share, one of the lowest numbers for the last five years, IDC said.

In the emerging markets of CEMA, security appliance hardware shipments contracted 5.9% year on year in Q1 2015, IDC said. Vendor revenue declined in turn by 11% over the same period, to $131 million.

"Demand in Russia and the Rest of Middle East and Africa created a strong downward pressure on the whole CEMA region," said Oleg Sidorkin, senior research analyst at IDC. "Low oil prices led to a revision of IT development plans in oil-rich countries, and as a result the whole IT security market may exhibit a moderate one-digit decline in 2015."

Russia's double-digit decline contributed to the regional contraction, as the biggest market in CEMA is affected by declines in oil prices and sanctions over the Ukraine conflict.

The political instability in the aftermath of the Arab Spring, and the conflicts in Levant and Yemen, cast shadows over the Middle East, IDC added. However, the research house noted that Turkey continued its 2014 growth, but at a slower single-digit rate in Q1 2015, despite parliamentary elections, and thanks to a resilient banking sector.

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