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11 Sep 2018

Strong Worldwide Security Appliance Growth Continues in Q2 2018 with UTM Leading the Way, According to IDC

FRAMINGHAM, Mass., September 11, 2018 – According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, the total security appliance market experienced positive unit shipment and revenue growth for the second quarter of 2018 (2Q18). Worldwide revenue for the second quarter increased 11.1% quarter over quarter and 17.0% year over year to $3.6 billion. Unit shipments experienced similar growth, increasing 9.9% quarter over quarter and 25.3% year over year to 921,278 units.

The Unified Threat Management (UTM) sub-market continues to drive the worldwide market with revenue increasing by 9.6% quarter over quarter and 16.5% year over year to reach $1.9 billion in the second quarter of 2018. UTM now comprises 52.9% of the total security appliance market. Additionally, Web security (WAM included) had a strong quarter, growing by 7.3% quarter over quarter and 7.8% year over year. Although messaging security saw an increase in unit shipments of 9.0% year over year for 2Q18, shipments declined 2.6% quarter over quarter. Only Ipsec VPN and SSL VPN had declining revenue for 2Q18.

Regional Highlights

The United States delivered 40.7% of the worldwide security appliance market revenue in 2Q18 (down from 42.3% in 1Q18) and grew 7.0% quarter over quarter and 16.6% year over year. Asia/Pacific (excluding Japan) (APeJ) experienced the strongest revenue performance with a quarter-over-quarter growth rate of 28.2% and a year-over-year growth rate of 21.0%, capturing 24.2% of the total market in 2Q18 (up from 21.0% in 1Q18). Additionally, Central & Eastern Europe had the highest growth in EMEA, with revenue increasing by 11.5% quarter over quarter and 16.9% year over year. UTM continues to push most of the growth in the U.S. and Europe, while firewall continues to see strong adoption in APeJ.

"The second quarter of 2018 extends the continued strong growth for network security with consistent double-digit growth year over year across the top vendors. Firewall and UTM are the strongest areas of growth as network refreshes drive perimeter security refreshes and as vendors add new features and improve performance across all product lines," said Robert Ayoub, program director, Security Products.

Top 5 Vendors, Worldwide Security Appliance Revenue, Market Share, and Growth, Second Quarter of 2018 (revenue in US$ millions)

Vendor

2Q18 Revenue

2Q18 Market Share

2Q17 Revenue

2Q17 Market Share

2Q18/2Q17 Growth

1. Cisco

$560.5

15.5%

$450.2

14.6%

24.5%

2. Palo Alto Networks

$521.5

14.4%

$421.9

13.7%

23.6%

3. Fortinet*

$388.3

10.7%

$320.1

10.4%

21.3%

3. Check Point*

$387.9

10.7%

$381.1

12.3%

1.8%

5. Symantec

$154.3

4.3%

$157.4

5.1%

-2.0%

Other

$1,601.2

44.3%

$1,356.6

43.9%

18.0%

Total

$3,613.7

100.0%

$3,087.4

100.0%

17.0%

Source: IDC Worldwide Quarterly Security Appliance Tracker Q2 2018, September 11, 2018

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

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