Network security appliance and software market up 5 percent in the first quarter of 2005, and is forecast to grow 27 percent to 1.3 billion dollars in the first quarter of 2006, according to a report published by Infonetics Research. Total annual revenue is expected to grow to 6.5 billion dollars by 2008.
First quarter of 2005 market highlights include: Cisco is the worldwide leader in revenue market share in the overall network security appliance and software market, Check Point is second in worldwide revenue share; Juniper is close behind in third, VPN and firewall appliances and software make up the majority of revenue (78 percent in this quarter), with IDS/IPS second at 14 percent, and gateway antivirus third at 8 percent, North America accounts for 45 percent of network security appliances and software revenue, EMEA for 29 percent, Asia Pacific for 21 percent, and CALA for 5 percent.
“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,” said Jeff Wilson, principal analyst at Infonetics Research.
“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.”