Worldwide Network Security Market

Monday, April 9, 2007

Worldwide network security appliance and software sales increased 15% to $4.5 billion between 2005 and 2006, and are forecast to pass the $5 billion mark for the first time in 2007, according to Infonetics Research’s latest Network Security Appliances and Software report.  The analysts expect growth in the network security appliance and software market to slow to the single-digits after 2007, as content security gateways and NAC products begin to infringe on network security product budgets.  “The most important appliance category to watch over the next year is secure routers.  Sales were up 25% in 2006 and this year will pass $1 billion in worldwide sales, representing a significant portion of the overall network security market.

  • Secure routers account for 29% of the total integrated security appliance market in 2006 and will continue to increase their share of the market through at least 2010.
  • Worldwide SSL VPN gateway revenue jumped 40% in 2006, following a 61% increase in 2005.
  • Worldwide IDS/IPS (intrusion detection and prevention systems) revenue grew 19% in 2006.
  • Cisco continues to lead the overall network security market, with 38% worldwide revenue share in 2006, posting growth in all network security market segments tracked by Infonetics.  Juniper and Check Point are tied for second, each with 9% worldwide revenue in 2006.

Infonetics’ network security report provides worldwide and regional market size and forecasts and worldwide market share for integrated security appliances in 6 price categories, secure routers, SSL VPN gateways, VPN and firewall software, and host- and network-based IDS/IPS products.  Companies tracked include 3Com/TippingPoint, AEP, Alcatel-Lucent, Array, Aventail, Check Point, Cisco, Citrix, CA, D-Link, Enterasys, F5, Fortinet, Juniper, McAfee, NETASQ, Nokia, Nortel, Secure Computing, SonicWALL, Symantec, WatchGuard, ZyXEL, and others.  A year ago, Infonetics forecast that worldwide network security appliance and software revenue would hit $4.4 billion in 2006; actual revenue was $4.5 billion.

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