Network security revenues projected to grow 27% by 1Q06
San Jose, CA—Though network security appliance and software revenues increased worldwide by 5% from the last quarter of 2004 (4Q04) and 1Q05, they’re forecast to shoot up 27% to $1.3 billion in 1Q06, according to “Network Security Appliances and Software,” Infonetics Research’s quarterly worldwide market share and forecast service.
San Jose, CA— Though network security appliance and software revenues increased worldwide by 5% from the last quarter of 2004 (4Q04) and 1Q05, they’re forecast to shoot up 27% to $1.3 billion in 1Q06, according to “Network Security Appliances and Software,” Infonetics Research ’s quarterly worldwide market share and forecast service.
Meanwhile, annual network security revenues are expected to grow to $6.5 billion by 2008. Infonetics adds that its forecast for 1Q05 network security appliance and software revenue was within 1% of actual revenue.
“This was a fairly quiet quarter overall, with Cisco's big jump in hardware secure router revenue clocking in as the only major event of the quarter,” says Jeff Wilson, Infonetics’ principal analyst. “The network security market will grow at a 15% compound annual growth rate between 2004 and 2008. This strong growth is being driven by the many new viruses, malware, and targeted attacks that surface every day, compelling companies of all sizes to invest in security. Many areas in the market will continue single and double-digit quarterly growth over the next few years.”
The analyst firm adds that market highlights in 1Q05 included:
Cisco is the worldwide leader in revenue market share in the overall network security appliance and software market, a position it has more or less maintained since 2002
Check Point is second in worldwide network security revenue share, while Juniper was close behind in third place
Enterasys, ISS, McAfee, Nokia, Nortel, SonicWall, and Symantec are strong second-tier players, with significant revenue market share across many categories
VPN and firewall appliances and software make up the majority of revenue (78% in 1Q05), with IDS/IPS second at 14%, and gateway antivirus third at 8%
North America accounts for 45% of network security appliances and software revenue, EMEA for 29%, Asia Pacific for 21%, and CALA for 5%
'Network Security Appliances and Software' tracks VPN and firewall appliances in six price-banded categories, hardware secure routers, SSL VPN gateways, VPN and firewall software, host- and network-based IDS/IPS products, and gateway anti-virus products. Forecasts are updated quarterly and cover North America, EMEA, Asia Pacific, CALA, and worldwide.
Control Engineering Daily News Desk
Jim Montague, news editor
- Events & Awards
- Magazine Archives
- Digital Reports
- Global SI Database
- Oil & Gas Engineering
- Survey Prize Winners
- CFE Edu