Cisco, ahead of Check Point, leads security appliance market with 18% share, says IDC

Cisco is leading the overall security appliance market with an 18.1 percent share in factory revenue for the fourth quarter with growth of 23.6 percent.

This was due in large part to its Sourcefire acquisition, which closed in early October.

Check Point held the number 2 spot with a 12.7 percent share for the quarter as revenue increased 5.6 percent compared to the fourth quarter of 2012.

Fortinet remained the third largest security appliance vendor, with a 6.6 percent share in the quarter.

Cisco security appliance

Juniper continued to build sequential momentum, but declined 6.4 percent compared to the prior year.

Palo Alto Networks again held the fifth spot among security appliance vendors with a share of 5.4 percent on 47.7 percent growth compared to the prior year.

IDC said factory revenue was up 6.8 percent year over year to $2.4 billion, as shipments increased 0.6 percent to 546,384 units.

For the full year 2013, revenue grew 5.4 percent year over year to $8.6 billion, while shipments decreased for the first time since 2009, falling -2.1 percent to 2 million units.

Geographically, Asia/Pacific (excluding Japan) saw the highest year-over-year factory revenue growth in the quarter (14.9 percent), followed by Canada which grew at 11.9 percent. Central and Eastern Europe posted the largest decline in Q4 2013, with revenue falling -4.9 percent compared to the prior year. The United States finished the year with growth of 7.7 percent in the quarter.

Top 5 Vendors, Worldwide Security Appliance Revenue, Fourth Quarter of 2013
(revenues in $ millions)

Vendor  Q4 2013
Revenue
   Q4 2013 Market
Share
   Q4 2012
Revenue
   Q4 2012 Market
Share
   Q4 2013/Q4 2012
Growth
Cisco  $434   18.1 %   $351   14.4 %   23.6 %
Check Point  $303   12.7 %   $287   11.8 %   5.6 %
Fortinet  $158   6.6 %   $136   5.6 %   16.2 %
Juniper  $147   6.1 %   $157   6.4 %   -6.4 %
Palo Alto Networks  $130   5.4 %   $88   3.6 %   47.7 %
Others  $1,221   51 %   $1,422   58.2 %   -14.1 %
Total  $2,393   100 %   $2,241   100 %   6.8 %

Source: IDC Worldwide Quarterly Security Appliance Tracker, March 6, 2013

Functional Market Results

At the functional market level, the Unified Threat Management (UTM) segment saw the largest year-over-year revenue increase at 25.7 percent and accounted for 41.2 percent of security appliance revenue in Q4 2013. This marked the first time UTM accounted for more than 40 percent of the appliance market.

Firewall revenue declined 7.1 percent year over year, as more gateway appliances gain additional functionality and are counted as UTM. Intrusion Detection and Prevention (IDP) again grew over the previous year, increasing 3.8 percent compared to Q4 2012. Finally, the content security segment declined 2.9 percent year over year and accounted for 16.6 percent of the market.

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