Security Appliance Market Growth Slows in First Quarter, According to IDC Business Wire FRAMINGHAM, Mass. -- June 24, 2013 According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, factory revenue rose in the first quarter of 2013 (1Q13) compared to Q1 2012, while unit shipments declined over the same period. Worldwide factory revenue was up 3.4% year over year to $2.0 billion, as shipments decreased -6.8% to 472,306 units. The shipment decline was due in large part to Cisco, which has transitioned to new appliances with a higher price point causing revenue to remain more consistent compared to declining units. The year-over-year growth rate for factory revenue was the lowest since Q1 2010. Geographically, Canada saw the highest year-over-year growth in the quarter (16.4%), followed by Japan (8.6%). Asia/Pacific (excluding Japan) continued to see steady growth (7.1%) and accounted for more than 16% of worldwide factory revenue. Western Europe also built on a strong fourth quarter and saw factory revenue rise 3.9% versus 1Q12. Asia/Pacific (excluding Japan) was the only region to see a year-over-year increase in unit shipments in the quarter (2.8%). The United States recorded a -0.2% decline in factory revenue and a unit decrease of -10.2% compared to 1Q12. "The government sector seemed to impact the results somewhat in the United States," said John Grady, Research Manager, Security Products at IDC "However, all organizations continue to prioritize security within their overall IT budget. With advanced, targeted threats a growing concern, IDC expects continued high single-digit growth in the overall security appliance segment over the course of 2013.” Cisco continues to lead the overall security appliance market with a 16.6% share in factory revenue for the first quarter, but this was down from 17.8% in the prior year period. Check Point held the number 2 spot with a 12.5% share for the quarter as revenue increased 5.7% compared to the first quarter of 2012. Fortinet saw the largest revenue growth among the top five vendors at 16.6%. The combined shares of the top 5 global vendors represented 49% of the market in Q1 2013. Blue Coat, Palo Alto Networks, and Sophos were some of the vendors outside the top 5 seeing strong growth in the quarter. Top 5 Vendors, Worldwide Security Appliance Revenue, First Quarter of 2013 (revenues in $ millions) Vendor 1Q13 1Q13 Share 1Q12 1Q12 Share 1Q13/1Q12 Revenue Revenue Growth Cisco $335 16.6% $346 17.8% -3.4% Check $252 12.5% $255 12.3% 5.7% Point Juniper $125 6.2% $152 7.8% -17.7% Fortinet $121 6.0% $104 5.3% 16.6% McAfee $111 5.5% $112 5.8% -0.8% Others $1,066 53.2% $976 51.0% 7.5% Total $2,010 100% $1,945 100% 3.4% Source: IDC Worldwide Quarterly Security Appliance Tracker, June 20, 2013 Functional Market Results At the functional market level, the Unified Threat Management (UTM) segment saw the largest year-over-year revenue growth at 36.4% and accounted for 37.1% of security appliance revenue in 1Q13, as multi-function appliances continued to drive growth in the overall market. The Firewall/VPN market declined 21.2% year over year, but still represented 20.9% of security appliance revenue in the quarter. The Content Security segment rose by 6.8% compared to the prior year and accounted for 20.3% of the market. IDP saw modest growth of 0.3% compared to the prior year period. "While businesses continue to explore the opportunities for migrating to a private cloud network as a new technology paradigm, unified security prospects will continue to expand rapidly into other small and medium-size businesses where demand is greater than ever," said Ebenezer Obeng-Nyarkoh, Senior Research Analyst, Worldwide Trackers Group. IDC's Worldwide Quarterly Security Appliance Tracker is a quantitative tool for analyzing the global security market on a quarterly basis and is available on demand. The Tracker includes quarterly shipments and revenues (both customer and factory), segmented by vendor, family, model, region, operating system, price band, and security functions. About IDC 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. All product and company names may be trademarks or registered trademarks of their respective holders. Contact: IDC John Grady, 508-988-6743 email@example.com or Eb Obeng-Nyarkoh, 508-935-4356 firstname.lastname@example.org or Michael Shirer, 508-935-4200 email@example.com
Security Appliance Market Growth Slows in First Quarter, According to IDC
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