According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, total market revenue in the worldwide security appliance market reached $17,6-billion for the full year 2023, an increase of $868-million compared to 2022.
The fourth quarter (4Q23) remained relatively flat with total market revenue of $4,96-billion, an increase of 0,8% on a year-over-year basis, while security appliance shipments totaled 1,2-million units in the quarter.
IDC completed an update to its Security Appliances taxonomy and applied these changes in the first quarter of 2023. This resized the market by removing revenues associated with software and services that do not qualify for reporting in the new hardware market view.
These changes were incorporated into the Security Appliance Tracker starting with the 2Q23 results and include Vendor Revenue (new hardware revenue) and Renewals/Firmware update revenue. IDC will use “Total Market Revenue” as the basis to calculate market share going forward.
“The security appliance market remains a key component in cybersecurity investments as we continue to observe additional subscription services running on top of hardware-based security platforms,” says Carlo Dávila, research manager: Enterprise Trackers at IDC.
“Through 2023 the release of new product families with enhanced performance, including the introduction or strengthening of AI capabilities, improved throughput and energy efficiency, are allowing customers to increase their budget efficiency.”
From a regional perspective, the Americas region delivered 5,1% total market revenue growth in the fourth quarter of 2023, offsetting a decline of 4% in the Asia/Pacific region. In Europe, the Middle East, and Africa (EMEA), the Central & Eastern Europe region increased total market revenue 15,1% year over year, while Western Europe grew 4,6% and the Middle East & Africa declined 17,7%. For the Americas, Canada (10,4% year over year growth) and Latin America (7,6% growth) saw dynamic revenue growth in 4Q23.
| Top 5 Companies, Worldwide Security Appliance Total Market Revenue, Market Share, and Growth, Fourth Quarter of 2023 (revenue in US$ millions) | |||||
| Company | 4Q23 Revenue | 4Q23 Market Share | 4Q22 Revenue | 4Q22 Market Share | 4Q23/4Q22 Growth |
| T1. Palo Alto Networks | $901.41 | 18.2% | $818.56 | 16.6% | 10.1% |
| T1. Fortinet | $877.56 | 17.7% | $871.61 | 17.7% | 0.7% |
| 3. Cisco | $539.62 | 10.9% | $530.62 | 10.8% | 1.7% |
| 4. Check Point | $346.85 | 7.0% | $350.28 | 7.1% | -1.0% |
| 5. Huawei | $174.70 | 3.5% | $165.41 | 3.4% | 5.6% |
| Rest of Market | $2,121.71 | 42.8% | $2,186.53 | 44.4% | -3.0% |
| Total | $4,961.85 | 100.0% | $4,923.02 | 100.0% | 0.8% |
| Source: IDC Worldwide Quarterly Security Appliance Tracker Q4 2023, March 7, 2023 | |||||