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UTM and Firewall Growth Drive the Worldwide Security Appliance Market Expansion in Q2 2017, According to IDC
[September 18, 2017]

UTM and Firewall Growth Drive the Worldwide Security Appliance Market Expansion in Q2 2017, According to IDC


According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, the total security appliance market saw positive growth in both vendor revenue and unit shipments for the second quarter of 2017 (2Q17). Worldwide vendor revenues in the second quarter increased 9.2% year over year to $3.0 billion and shipments grew 7.0% year over year to 706,186 units.

The trend for growth in the worldwide market driven by the Unified Threat Management (UTM) sub-market continues, with UTM reaching record-high revenues of $1.6 billion in 2Q17 and year-over-year growth of 16.8%, the highest growth among all sub-markets. The UTM market now represents more than 50% of worldwide revenues in the security appliance market. The Firewall and Content Management sub-markets also had positive year-over-year revenue growth in 2Q17 with gains of 9.5% and 6.4%, respectively. The Intrusion Detection and Prevention and Virtual Private Network (VPN) sub-markets experienced weakening revenues in the quarter with year-over-year declines of 11.7% and 1.3%, respectively.

Regional Highlights

The United States delivered 41% of the worldwide security appliance market revenue and was the major driver for spending in Q2 2017 with 9.2% year-over-year growth. Asia/Pacific (excluding Japan)(APeJ) had the strongest year-over-year revenue growth in 2Q17 at 20.9% and captured 23.9% revenue market share. The more mature regions of the world - the United States and EMEA - combined to provide nearly two thirds of the global security appliance market revenue. Both regions had positive growth in the single-digit range. Europe, the Middle East and Africa (EMEA) saw an annual increase of 2.3%. Asia/Pacific (including Japan)(APJ) and the Americas (Canada, Latin America, and the U.S.) experienced year-over-year growth of 17.2% and 8.8%, respectively.

"Over the last quarter, there has been growth in every region with particularly strong growth in Asia/Pacific. Firewall and UTM continue to be the strongest areas of growth, as those products continue to add security features leveraging and addressing cloud protection," said Robert Ayoub, research director, Security Products at IDC (News - Alert).





 

Top 5 Vendors, Worldwide Security Appliance Revenue, Market Share, and Growth,
Second Quarter of 2017 (revenues in US$ millions)

Vendor      

2Q17
Revenue

     

2Q17
Market
Share

     

2Q16
Revenue

     

2Q16
Market
Share

     

2Q17/2Q16
Growth

1. Cisco (News - Alert)       $479.60       15.9%       $448.72       16.3%       6.9%
2. Palo Alto (News - Alert) Networks       $421.09       14.0%       $333.68       12.1%       26.2%
3. Check Point       $380.32       12.6%       $358.05       13.0%       6.2%
4. Fortinet       $320.12       10.6%       $269.61       9.8%       18.7%
5. Symantec (News - Alert)       $139.35       4.6%       $127.13       4.6%       9.6%
Other       $1,267.10       42.1%       $1,216.50       44.2%       4.2%
Total       $3,007.59       100.0%       $2,753.68       100.0%       9.2%
Source: IDC Worldwide Quarterly Security Appliance Tracker Q2 2017 September 18, 2017
 

In addition to the table above, a graphic illustrating worldwide revenue market share for the top 5 security appliance companies over the previous five quarters is available by viewing this press release on IDC.com.

About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

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. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter (News - Alert) at @IDC and LinkedIn.

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