SOURCE: Infonetics Research

December 04, 2006 15:57 ET

Network security sales up 11%, content security gateway sales up 7% in 3Q06

CAMPBELL, CA -- (MARKET WIRE) -- December 4, 2006 -- Worldwide network security appliance and software sales are up 11% to $1.18 billion between the second and third quarters of 2006, and are forecast to grow 39% between 2005 and 2009, when they will reach $5.48 billion, according to Infonetics Research's latest Network Security Appliances and Software report.

"We expect that within the next 2 years almost every VPN/firewall appliance sold will have some form of intrusion prevention and gateway anti-virus integrated in it, and will likely also include other content security features like anti-spam and anti-spyware," said Infonetics Research analyst Jeff Wilson. "On the flip side, we also expect to see quite a few vendors launch new security appliances that focus on application and content security, and consciously omit VPN/firewall as a way to breach an established market with entrenched vendors."

3Q06 Highlights

--  Secure routers account for 28% of the total integrated security
    appliance market in 3Q06
--  Worldwide SSL VPN gateway revenue grew 12% in 3Q06, and will grow 44%
    by 3Q07
--  Worldwide IDS/IPS product revenue was up 8% in 3Q06; the IDS/IPS
    market in general is stalling a bit at the hands of the content security
    market
--  Cisco closed their fiscal year in 3Q06 with major gains across the
    board in the network security market, including 22% growth in total revenue
    (up $84.91 million), maintaining their strong market share lead in the
    overall network security market
    
Another report from Infonetics, Content Security Appliances and Software Market Outlook, shows worldwide content security gateway sales rose 7% in 3Q06, hitting $291 million, and are forecast to top $2.1 billion in 2009, a 5-year CAGR of 26%.

"The potential for the content security market is being hampered a bit in the very short term by the general confusion about when to use content security gateways versus firewalls, UTMs, and IPS products, and it doesn't help that there's a glut of products and vendors in the segment," said Jeff Wilson. "But many vendors (large and small, new and old) are investigating the opportunity to provide highly functional integrated appliances, so we expect to see an explosion of new vendors, products, and revenue in the next 2 years."

Report Highlights

--  Content security appliance sales grew 14% from 2Q06 to 3Q06, and
    annual sales are forecast to grow 150% from 2005 to 2009, fueled by
    innovative security features, strong performance, and reasonable prices
--  Content security software sales inched up 1% sequentially
--  North America accounted for 51% of all content security gateway
    revenue in 2005, Asia Pacific for 27%, EMEA for 20%, and CALA for 2%
    
Infonetics' Network Security Appliances and Software report provides worldwide and regional market size and forecasts and worldwide market share for integrated security appliances in 6 price categories, secure routers, SSL VPN gateways, VPN/firewall software, and host- and network-based IDS/IPS products. Companies tracked include 3Com/TippingPoint, AEP, Array, Avaya, Aventail, Check Point, Cisco, Citrix, CA, D-Link, Enterasys, F5, Fortinet, Juniper, Lucent, McAfee, NETASQ, Nokia, Nortel, Secure Computing, SonicWALL, Symantec, WatchGuard, ZyXEL, and others.

Infonetics' Content Security Appliances and Software Market Outlook report provides market size, forecasts, and analysis for content security gateways, broken out by appliances vs. software. The service tracks Barracuda, BlueCoat, Citrix, CP Secure, eSoft, F-Secure, IronPort, McAfee, Secure Computing, SonicWALL, Symantec, Trend Micro, Websense, and others.

Download sample data at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com, (408) 583-3335.

Infonetics Research (www.infonetics.com) is the premier international market research and consulting firm specializing in data networking and telecom. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contact:
    Jeff Wilson
    Principal Analyst, Network Security
    Infonetics Research
    (408) 583-3337
    Email Contact