According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, total market revenue in the global security appliance market grew 0,5% year over year in the second quarter of 2024 (2Q24) to $4,2-billion, an increase of $20-million compared to the second quarter of 2023.
Security appliance shipments reached 1-million units in 2Q24, a year-over-year decline of 4,3%.
IDC completed an update to its security appliances taxonomy and applied these changes during the first quarter of 2023, resizing the market by removing revenues associated with software or services that don’t qualify for reporting in this hardware market view. IDC’s Security Appliance Tracker now includes new figures for Vendor Revenue (new hardware revenue) and Renewals/Firmware update revenue, which are then combined to form the “Total Market Revenue” figure that IDC uses to calculate market share.
“The growing inclusion of AI capabilities on top of Network Security products like Firewall/UTM will improve the performance of such devices when protecting different environments from continuously evolving advanced threats. In addition, the increased throughput and improved energy efficiency will ensure that Security Appliances will continue to play a critical role in cybersecurity strategies,” says Carlo Dávila, research manager, Enterprise Trackers at IDC.
From a geographic perspective, Canada and Japan were the most dynamic regions in the Security Appliances Market during the second quarter of 2024 with year-over-year growth of 15,4% and 10,3% respectively, offsetting the declines in Latin America (-10,7%) and Middle East & Africa (-17,6%).
| Top 5 Companies, Worldwide Security Appliance Total Market Revenue, Market Share, and Growth, Second Quarter of 2024 (revenue in US$ millions) | |||||||
| Vendor | 2Q24 Revenue | 2Q24 Market Share | 2Q23 Revenue | 2Q23 Market Share | 2Q24/2Q23 Growth | ||
| 1. Palo Alto Networks | $952.4 | 22.4% | $883.6 | 20.9% | 7.8% | ||
| 2. Fortinet | $817.1 | 19.2% | $897.6 | 21.2% | -9.0% | ||
| 3. Cisco | $560.3 | 13.2% | $535.9 | 12.7% | 4.5% | ||
| 4. Check Point | $334.1 | 7.9% | $315.8 | 7.5% | 5.8% | ||
| 5. Huawei | $146.7 | 3.5% | $145.0 | 3.4% | 1.2% | ||
| Rest of Market | $1,435.4 | 33.8% | $1,448.2 | 34.3% | -0.9% | ||
| Total | $4,245.9 | 100.0% | $4,226.1 | 100.0% | 0.5% | ||
| Source: IDC Worldwide Quarterly Security Appliance Tracker Q2 2024, September 5, 2024 | |||||||