By using this site, you agree to the IDC Privacy Policy

09 Mar 2017

UTM and Firewall Annual Double Digit Growth Drive the Worldwide Security Appliance Market Expansion in 2016, According to IDC

FRAMINGHAM, Mass., March 9, 2017 – According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, the total security appliance market showed positive growth in both vendor revenue and unit shipments for the fourth quarter of 2016 (4Q16). Worldwide vendor revenues in the fourth quarter increased 12% year over year to $3.3 billion, and units showed an all-time record high in shipments for a single quarter with 781,838 units and 24% annual growth. For the full year 2016, worldwide security appliance revenue increased 9.7% to $11.6 billion when compared to 2015, while worldwide unit shipments increased 18% for a little over 2.7 million units shipped in 2016.

The trend for growth in the worldwide market driven by the Unified Threat Management (UTM) sub-market continues, with UTM almost tripling its size over the last five years reaching record high revenues of $5.7 billion for 2016 and year-over-year growth of 17.3%, the highest growth among all sub-markets. The UTM market represents today almost 50% of the worldwide revenues in the security appliance market. The Firewall and Content Management sub-markets also had positive year-over-year revenue growth in 2016 with gains of 10.4% and 4%, respectively. The Intrusion Detection and Prevention and Virtual Private Network (VPN) sub-markets experienced weakening revenues in 2016 with year-over-year declines of 4.8% and 4.3%, respectively.

Regional Highlights

The Asia/Pacific (including Japan) region delivered 29% of the worldwide security appliance market revenue, and it was the major driver for spending in 2016 with double-digit growth. Asia/Pacific (excluding Japan) (APeJ) accounted for the strongest growth for 2016 with year-over-year revenue growth of 21% followed by Japan with a healthy 16.9% revenue growth when compared to 2015. The more mature regions of the world – the United States and Europe, the Middle East, and Africa (EMEA) – combined to produce around 38% of the total security appliance market revenue. Both regions had positive growth in the single-digit range: EMEA had an annual increase of 6.8%, while U.S. annual growth was 5.8% compared to 2015.

"The high growth in many appliance markets is an encouraging sign for IT security appliance vendors, with continued talk of going virtual, many customers still desire on-premise hardware solutions," said Elizabeth Corr, research analyst, Security Products at IDC.

Top 5 Vendors, Worldwide Security Appliance Revenue, Market Share, and Growth, Fourth Quarter of 2016 (revenues in US$ millions)

Vendor

4Q16 Revenue

4Q16 Market Share

4Q15 Revenue

4Q15 Market Share

4Q16/4Q15 Growth

1. Cisco

$451.65

13.7%

$425.14

14.4%

6.2%

2. Check Point

$406.93

12.3%

$379.26

12.8%

7.3%

3. Palo Alto Networks

$366.86

11.1%

$287.55

9.7%

27.6%

4. Fortinet

$314.94

9.5%

$252.85

8.6%

24.6%

5. Huawei

$157.05

4.7%

$88.02

3.0%

78.4%

Other

$1,610.70

48.7%

$1521.18

51.5%

5.9%

Total

$3,308.13

100.0%

$2,954.01

100.0%

12%

Source: IDC Worldwide Quarterly Security Appliance Tracker Q4 2016 March 14, 2017



This chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic are available by clicking here.



Top 5 Vendors, Worldwide Security Appliance Revenue, Market Share, and Growth, Calendar Year 2016 (revenues in US$ millions)

Vendor

2016 Revenue

2016 Market Share

2015 Revenue

2015 Market Share

2016/2015 Growth

1. Cisco

$1,777

15.3%

$1710

16.2%

4.0%

T2. Check Point*

$1,480

12.8%

$1346

12.7%

9.9%

T2. Palo Alto Networks*

$1,367

11.8%

$1014

9.6%

34.9%

4. Fortinet

$1,108

9.6%

$883

8.4%

25.5%

5. Huawei

$376

3.2%

$221

2.1%

70.3%

Other

$5,484

47.3%

$5392

51.0%

1.7%

Total

$11,510

100.0%

$10,566

100.0%

9.7%

Source: IDC Worldwide Quarterly Security Appliance Tracker Q4 2016 March 14, 2017

* Note - IDC declares a statistical tie in the worldwide security appliance market when there is a difference of one percent or less in the revenue share of two or more vendors.

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 subsidiary of IDG, the world's leading technology media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

Coverage

Contact

For more information, contact:

Michael Shirer
press@idc.com
508-935-4200

Alex Oman
aoman@idc.com
508-935-4298