According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, the security appliance market continues to see positive momentum.
In the first quarter of 2014 (1Q14), worldwide factory revenue grew 8% year-over-year to $2,1-billion. This was the 18th consecutive quarter of positive growth, dating back to the fourth quarter of 2009.
First quarter shipments also grew, totalling 478 384 units, up 2,4% over the 467 143 units shipped in 1Q13.
Geographically, Latin America saw the highest year-over-year growth in the quarter at 20%. Asia/Pacific (excluding Japan) also continued to see strong appliance sales, with revenue increasing 13,6% compared to 1Q13.
North America grew 12,1% in the quarter while accounting for 43% of the market, helping drive top-line growth. Western Europe was essentially flat year over year, as pockets of economic uncertainly lengthen sales cycles and inhibit growth.
“Security concerns have absolutely risen in priority, due in part to the recent breaches at Target, Nieman Marcus, and others,” says John Grady, programme manager: security products at IDC.
“With C-level executives taking a more vested interest in their organisations’ security posture, budget is being prioritised for security initiatives. This was exemplified by the fact that growth actually accelerated in the first quarter, which typically does not occur coming off the year end.”
Cisco continues to lead the overall security appliance market with a 17,5% share in factory revenue for the first quarter with significant growth of 11,7% compared to the first quarter of 2013. This growth was driven in part by the acquisition of Sourcefire.
Check Point again held the number two spot for the quarter as revenue increased 7,7% year-over-year.
Fortinet remained the number 3 security appliance vendor as market share increased to 7,1% on growth of 23,7% compared to 1Q13 Palo Alto Networks surpassed Juniper to become the number 4 security appliance vendor on year-over-year growth of 66,1%.
Juniper rounded out the top five, growing 1,2% year over year and accounting for 6% of the market.