The network security appliance and software revenue increased 6 percent to $6.9 billion in 2014. Palo Alto Network and Fortinet were the star performers.
The growth was due to the deployment of security solutions by enterprises and network operators to protect data and network infrastructure, said Infonetics Research.
The report noted strong revenue growth by Palo Alto Networks and Fortinet. For instance, Palo Alto Networks’ revenue increased more than 50 percent in 2014, while Fortinet’s increased 25 percent.
WatchGuard and Dell have also performed well in terms of network security revenue growth in 2014.
Check Point and Cisco are the other two top network security vendors. Juniper Networks has moved out of the top tier position.
While Palo Alto Networks and Fortinet gained, revenue growth of Juniper Networks, McAfee and ISS was negative in 2014.
“By next year, though, quarterly revenue growth will begin to slow as the industry transitions to lower-ASP virtualized security solutions,” said Jeff Wilson, principal analyst for security at Infonetics Research, now part of IHS.
However, integrated advanced threat prevention security solutions for the Internet of Things (IoT), mobile networks and industrial environments will help support overall market growth.
The network security market, including appliances and software, grew 4 percent sequentially to $1.9 billion.
The size of the network security market will be $7.5 billion in 2019, a 2014–2019 compound annual growth rate (CAGR) of 1.5 percent.