Factory revenue was up for the security appliance market in the second quarter of this year, according the IDC (News - Alert) Worldwide Quarterly Security Appliance Tracker report just released, but unit shipments declined over the same period.
Worldwide factory revenue increased 6.1 percent year over year to $2.1 billion in the quarter, the report found. Shipments decreased 1.5 percent to 483,354 overall. Multi-function appliances continue to be a major factor in growth for the segment, according to IDC.
The unified threat management (UTM) segment of the security appliance market saw the biggest gains in the second quarter. It grew by 32.7 percent year over year, and accounted for roughly 38.2 percent of security appliance revenue in the quarter.
The Firewall market declined 22.1 percent, but it still represents 20.3 percent of security appliance revenue. Intrusion (News - Alert) detection and prevention had a good quarter, too, growing by 10.7 percent compared with the prior year period.
Content security also grew, according to IDC; it was up 6.8 percent compared with the second quarter of last year. It accounted for 19.6 percent of the market overall.
Cisco (News - Alert) continues as the industry leader, having a 16.2 percent share in factory revenue for the second quarter. It was flat versus the prior year, however. Check Point follows behind with a 12.5 percent share for the quarter on a revenue increase of 4 percent over last year’s second quarter. Fortinet (News - Alert) also surpassed Juniper to become the third largest security appliance vendor. Its share of the market was 6.2 percent in the quarter.
Geographically, Canada is the hot market for security appliances currently. Its year-over-year growth was 17.6 percent for the quarter, with Asia Pacific (excluding Japan) the next hottest market with growth of 9/9 percent. The U.S. also grew 8.7 percent and accounts for nearly 41 percent of worldwide factory revenue.
Western Europe grew a comparatively flat 0.6 percent in the quarter.
"Despite the increasing prevalence of virtual and SaaS (News - Alert)-based solutions, appliances remain the predominant delivery method for network security products,” noted John Grady research manager of security products at IDC. “Even with performance and functional requirements rising dramatically for many organizations, appliance-based products have continued to meet market demands.”