Singapore and Hong Kong, November 22, 2012 – The security appliance market in the Asia/Pacific excluding Japan (APEJ) region grew to US$344.5 million in factory revenues in the second quarter of 2012, according to IDC’s Asia/Pacific Quarterly Security Appliance Tracker. This represents a growth of 10% from the same quarter in 2011, and shipments increased 6.6%.
"IDC's research shows that the security appliance market is still evolving, despite its maturity in certain solutions. New technologies are being invested in and introduced to the market; the actions of vendors in the space speak to how important the solutions remain," says Naveen Hegde, Senior Market Analyst of Asia/Pacific Software Research at IDC. "The increased attention to sound IT network infrastructure, compliance with regulatory requirements, and easy-to-manage solutions have drawn much focus on the security appliance. The growing interest in mobility, cloud, and big data has also increased the complexity of the threats and thus a higher demand on security appliances."
Globally, APEJ was one among the only 2 regions with double-digit year-over-year growth in factory revenue. The strong growth was largely driven by Unified Threat Management (UTM), Firewall/VPN, and Intrusion Prevention System (IPS) appliances. China, Korea, India and Australia were the largest countries estimated to be worth of 82% of the APEJ region’s security appliance market in 2Q 2012. At functional level, UTM showed 21.4% growth, followed by Firewall and IPS at 11.3% and 10.6% respectively year-on-year. Cisco continues to lead the overall security appliance market. Check Point and Fortinet gained market share and became the second and third players in the market, while Juniper Networks continued to lose market share and held the forth place in the quarter.
The security appliance market in Asia/Pacific is set to grow at a compounded annual growth rate of 12% and will reach US$2.6 billion by 2016 in customer revenue. The outlook for Asia/Pacific market looks stable in spite of the prevailing Euro crisis and delayed IT spending. The UTM function is leading the demand curve, taking a share of 37% of the total security appliance market by 2016 as against 29% in 2011.
"We expect the security appliance market to register healthy growth across various market segments, particularly in the UTM, content management and VPN segments," says Shahnawas Latiff, Market Research Analyst of Asia/Pacific Software Research at IDC. "The demand is clearly on a strong positive curve. Today’s enterprise faces complex, sophisticated security threats, from advanced persistent attacks (ATPs) to zero-day vulnerabilities, and the security products that an organization implements play a major role in the success or failure of the organization's overall security strategy."
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