[ISN] Hacking fear drives up network security market

[InfoSec News]

http://www.vnunet.com/vnunet/news/2137429/hacking-fear-drives-network-security-market

Robert Jaques
vnunet.com 
02 Jun 2005 

Network security appliance and software sales are poised for explosive
growth of 27 per cent to clock up revenues of $1.3bn in the first
quarter of 2006, analysts have predicted.

According to Infonetics Research's quarterly worldwide market share
and forecast service, sales increased by five per cent between the
last quarter of 2004 and the first quarter of 2005. Total annual
revenue is expected to grow to $6.5bn by 2008.

"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 per cent compound
annual growth rate between 2004 and 2008, 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."

The Infonetics study found that Cisco is the worldwide leader in
revenue market share in the overall network security appliance and
software market, a position it has held since 2002.

Check Point came in second in terms of worldwide revenue share, with
Juniper close behind in third.

Enterasys, ISS, McAfee, Nokia, Nortel, SonicWall and Symantec were
identified as strong second-tier players, with significant revenue
market share across a number of categories.

VPN/firewall appliances and software make up the majority of revenue
(78 per cent in the first quarter of 2005) with intrusion
detection/prevention second at 14 per cent, and gateway antivirus
third at eight per cent.

North America accounted for 45 per cent of network security appliances
and software revenue, according to the research, followed by EMEA at
29 per cent and Asia Pacific at 21 per cent.