[September 11, 2014]

Security Appliance Growth Continues in Second Quarter of 2014, According to IDC

According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, the security appliance market continues to see positive momentum. In the second quarter of 2014 (2Q14), worldwide factory revenue grew 7.3% year over year to $2.2 billion. This was the 19th consecutive quarter of positive growth, dating back to the fourth quarter of 2009. Second quarter shipments also grew, totaling 500,178 units, up 4.9% over the 476,903 units shipped in 2Q13.

Geographically, Latin America saw the highest growth in the quarter at 24.5%. Asia/Pacific also saw strong appliance sales, with revenue increasing 11.3% compared to 2Q13. North America grew 6.0% in the quarter while accounting for 39.4% of market revenues. Western Europe saw its highest growth since the first quarter of 2011, with revenue increasing 6.8% year over year.

Cisco (News - Alert) continues to lead the overall security appliance market with 18.4% share of factory revenue in the second quarter with year-over-year growth of 19.7%. Check Point again held the number two spot for the quarter as revenue increased 9.8% year over year. Fortinet remained the third largest security appliance vendor as its market share increased to 7.3% on growth of 24.6% over 2Q13. Palo Alto Networks rose to the number four spot on growth of 57.6%. Intel (News - Alert) Security rounded out the top 5, growing 12.9% year over year and accounting for 5.3% of the market.

In addition to the table above, an interactive graphic showing worldwide market share for the top five security appliance vendors over the previous five quarters is available here. Instructions on how to embed this graphic into online news articles and social media can be found by viewing this press release on IDC.com.

Functional Market Results

At the functional market level, the Unified Threat Management (UTM) segment saw the largest year-over-year revenue increase at 21.5% and accounted for 43.6% of security appliance revenue in 2Q14. The Firewall market remained constant year over year, and represented 19.2% of security appliance revenue in the quarter. The Content Security and Intrusion (News - Alert) Detection and Prevention (IDP) segments made up 17.2% and 16.0% of the market, respectively, with Content Security declining -0.9% and IDP declining -1.2% year over year.

"With countless Web site hacks and data thefts, network encryption and information protection are more important than ever," said Ebenezer Obeng-Nyarkoh, Senior Research Analyst, Worldwide Trackers Group. "Trying to track new security vulnerabilities can be overwhelming because so many Web-based applications use services that are not up to date on all of their network and services."

IDC's Worldwide Quarterly Security Appliance Tracker is a quantitative tool for analyzing the global security market on a quarterly basis. The Tracker includes quarterly shipments and revenues (both factory and customer), segmented by vendor, security function, product family, model, region, operating system, and price band.

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. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com. Follow IDC on Twitter (News - Alert) at @IDC.

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