10 Sep 2019

Strong UTM Demand and Regional Markets Drive Security Appliance Growth in Q2 2019, According to IDC

FRAMINGHAM, Mass., September 10, 2019 – According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, the total security appliance market experienced double-digit unit shipment and revenue growth in the second quarter of 2019 (2Q19). Worldwide revenue increased 10.4% year over year in 2Q19 to $3.9 billion. Unit shipments experienced similar growth, increasing 14.3% year over year to more than 1.0 million units.

The Unified Threat Management (UTM) market segment continued to account for the most significant share of worldwide revenue. This segment accounted for over $161.4 million more in revenue for 2Q19 than in 1Q19. Despite being the largest overall segment, UTM grew by 13.7% year over year and now accounts for 54.2% of the worldwide security appliance market in 2Q19. Additionally, Web security and messaging security continue to show strong signs of growth, increasing by 12.9% and 14.9% year over year, respectively. Hybrid VPN, SSL VPN, and IPsec VPN were the only market segments to experience declining revenue this quarter with Hybrid VPN declining by 6.9% year over year, SSL VPN declining by 2.3% year over year, and IPsec VPN declining by 17.8% year over year.

Regional Highlights

The United States accounted for 42.7% of total security appliance market revenue in 2Q19, which is down from 43.3% in 1Q19 but up from 41.0% in 2Q18. Asia/Pacific excluding Japan (APeJ) grew 4.5% year over year, while the Middle East and Africa (MEA) region grew 15.3% 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 second quarter remained steady with double-digit sequential and annual growth, largely stemming from increased UTM growth worldwide and continued penetration in the Asia/Pacific and Middle East regions," said Chris Rodriguez, research manager, Security Products.

*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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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 wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.

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