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07 Mar 2019

UTM and Strong Regional Markets Drive Security Appliance Growth in Q4 2018, According to IDC

FRAMINGHAM, Mass., March 7, 2019 – According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, the total security appliance market experienced positive unit shipment and revenue growth in the fourth quarter of 2018 (4Q18). Worldwide revenue increased 16.7% year over year in 4Q18 to $4.5 billion. Unit shipments experienced similar growth, increasing 20% year over year to nearly 1.1 million units.

The Unified Threat Management (UTM) market segment continued to account for the most significant worldwide revenue growth. This segment accounted for over $220 million more in revenue for 4Q18 than in 3Q18. Despite being the largest overall segment, UTM grew by 19.7% year over year and now accounts for 50.9% of the worldwide security appliance market in 4Q18. Additionally, Web security and Messaging security continue to show strong signs of growth, increasing by 5.5% and 18.1% year over year, respectively. Hybrid VPN and IPsec VPN were the only two market segments to experience declining revenue this quarter, with Hybrid VPN declining by 10.4% year over year and IPsec VPN declining by 20.1% year over year.

Regional Highlights

The United States accounted for 36.7% of total security appliance market revenue in 4Q18, which is down from 39.5% in 3Q18 but up from 36.0% in 4Q17. Asia/Pacific (excluding Japan) (APeJ) grew 19.1% year over year, while the Middle East and Africa (MEA) region grew 31.8% year over year. UTM, Web security, and a renewed interest in Email security are pushing growth in North America and Europe, while Firewall and IPS remain important for APeJ and MEA.

"The fourth quarter closed out the year on a strong note with double-digit sequential and annual growth, largely stemming from increased UTM penetration worldwide and strong regional growth in the Asia/Pacific and Middle East regions," said Pete Finalle, senior analyst, Security Products.

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


4Q18 Revenue

4Q18 Market Share

4Q17 Revenue

4Q17 Market Share

4Q18/4Q17 Growth

1. Cisco






2. Palo Alto Networks






3. Fortinet*






3. Check Point*






5. Symantec


















Source: IDC Worldwide Quarterly Security Appliance Tracker Q4 2018, March 7, 2019

* 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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