11 Mar 2021

Strong Regional Performance in Asia/Pacific Drives Security Appliance Growth in Q4 2020, According to IDC

NEEDHAM, Mass., March 11, 2020 – Worldwide revenue in the security appliance market grew 11.3% year over year and 15.0% quarter over quarter in the fourth quarter of 2020 (4Q20), according to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker. Overall market revenue totaled $5.3 billion, an increase of $538 million from the fourth quarter of 2019. Unit shipments in 4Q20 increased 10.2% year over year and 15.3% compared to 3Q20.

The unified threat management (UTM) market accounted for 79.5% of the year-over-year increase in revenue, thanks largely to the strength of sales in the Asia/Pacific region and regardless of the on-going pandemic. However, despite being significantly smaller overall, virtual private network (VPN) sales grew the most with year-over-year revenue growth of 21.8%. Legacy security appliances, including traditional firewall and intrusion detection and prevention systems (IDS/IPS) experienced slight declines in unit shipments for the quarter.

Regional Highlights

From a geographic perspective, China carried the security appliance market for the quarter, growing by 27.4% year over year and 60.3% quarter over quarter with revenues increasing $531.4 million compared to 3Q20. The rest of the world (excluding China) delivered 6.4% annual growth and 4.3% sequential growth. Additionally, although significantly smaller than China, the Middle East & Africa region grew by an impressive 24.2% year over year and 39.1% compared to 3Q20. Other regions that experienced strong annual growth for the quarter were Asia/Pacific (excluding Japan and China) at 11.1%, Central and Eastern Europe at 9.7%, and Japan at 9.1%.

"While the ongoing pandemic has dampened the appetite for on-premise security hardware around the world, standout performances in China and a few other regions helped the security appliance market grow an impressive 11.3% year over year," said Pete Finalle, senior analyst, Security and Trust at IDC.

Top 5 Companies, Worldwide Security Appliance Revenue, Market Share, and Growth, Fourth Quarter of 2020 (revenue in US$ millions)

Vendor

4Q20 Revenue

4Q20 Market Share

4Q19

Revenue

4Q19 Market Share

4Q20/4Q19 Growth

T1. Palo Alto Networks

$794.0

15.0%

$644.7

13.6%

23.2%

T1. Cisco

$770.1

14.6%

$757.5

15.9%

1.7%

3. Fortinet

$642.0

12.1%

$528.3

11.1%

21.5%

4. Check Point

$439.9

8.3%

$450.5

9.5%

-2.4%

T5. Huawei

$204.2

3.9%

$145.6

3.1%

40.3%

T5. SonicWALL

$174.4

3.3%

$182.6

3.8%

-4.5%

Rest of Market

$2,262.8

42.8%

$2,040.1

43.0%

10.9%

Total

$5,287.4

100%

$4,749.4

100%

11.3%

Source: IDC Worldwide Quarterly Security Appliance Tracker Q4 2020, March 11, 2020

* 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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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 wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.



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