Security Appliance Market Growth Lowest Since 2010 Q1

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According to the latest Q1 figures, security appliance revenue remains above $2 billion, but grew only 3.4 percent compared to 7.2 percent in the previous quarter.

Editor’s note:  As part of our special editorial partnership, Channelnomics is publishing this recent article from CRN in the UK.

The year-on-year growth rate for revenue in the security appliance market in Q1 2013 was the lowest since the start of 2010, according to IDC.

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In 2013's first quarter, global factory revenue was up 3.4 percent annually -- reaching the $2 billion mark -- but shipment levels dropped year on year by 6.8 percent to 472,306. IDC claims Cisco Systems Inc.'s transition to newer, more expensive security appliances drove the shipment decline.

In the previous quarter, security appliance revenue rose 7.2 percent to $2.3 billion.

Cisco continued to lead the market, but its share dropped to 16.6 percent following a 3.4 percent year-on-year dip in its revenue to $335 million. Third-place Juniper Networks Inc.'s security appliance sales slumped 17.7 percent annually to $152 million, widening the gap between it and second-place Check Point Software Technologies Ltd. The latter's security appliance sales jumped 5.7 percent annually to $252 million, meaning its market share (12.5 percent) was more than double Juniper's (6.2 percent).

The majority -- 51 percent -- of the security appliance market revenue was transacted through the "other" vendors outside the top five, and IDC pinpointed Blue Coat Systems Inc., Palo Alto Networks and Sophos Ltd. as having enjoyed strong annual growth in the quarter.

John Grady, research manager for security products at IDC, said security continues to be a priority for all businesses. This will act to drive further market growth in the segment.

"All organizations continue to prioritise 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," he said.

Western European factory revenue rose 3.9 percent annually, trailing the growth levels in the Canadian and Japanese markets, which rocketed 16.4 percent and 8.6 percent respectively.

For more UK channel coverage from CRN, visit www.channelweb.co.uk

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