Global enterprise security market growth slows
- Cisco maintains lead, market growth expected to improve in
2007
Reading, UK - Wednesday, 28 March 2007
For immediate release
- Annual security market growth declined to 7.2% in 2006, from
over 30% in 2004 and 20% in 2005
- Symantec and Trend Micro benefited from strong PC market
growth
- Growth is predicted to return to double figures in 2007
Highlights from the Canalys Q4 2006 global enterprise security
research
The latest global enterprise security research from Canalys shows
that the market grew at a reduced rate of 7.2% for the whole of
2006. This is a far cry from the heady days of compliance investment
in 2004 and 2005, where year-on-year growth rates in excess of 30%
were common. Cisco maintained its leadership position, although
Symantec closed in considerably through 2006. Other strong market
performers included Trend Micro, Juniper Networks and Fortinet.
North America and EMEA remained the biggest regions in value
terms, with the former accounting for almost 47% of the €7.1 billion
global end-user spend on enterprise security hardware and software,
according to Canalys estimates. The year closed with overall market
growth slightly below expectations, but a strong rise in the PC,
server and networking markets indicates that a return to low
double-digit growth in 2007 is likely.
The enterprise security market is finely balanced between
hardware (infrastructure security appliances) and software (client
security software and infrastructure security software). It was the
software segment that saw higher growth and volume in 2006, rising
8.5% year-on-year to reach €3.7 billion. Canalys expects that new
technologies such as multi-core processors, virtualisation, I/O
acceleration and co-processor integration will continue to provide a
foundation for the software market to hold its own against dedicated
infrastructure security appliances.
Symantec remains the largest vendor of enterprise security
software, with full year end-user spend estimated at just over €1
billion. Client security software remains the largest segment,
dominated by Symantec and McAfee, with Trend Micro and CA slotting
in behind. The infrastructure security software segment remains
diverse, with CA leading thanks largely to strong performance in the
Identity and Access Management space.
Canalys predicts the software firewall market is set for
resurgence. “Check Point has demonstrated a return to its roots in
the software firewall market. New technologies, such as blade
servers, change the economics and viability of security solutions in
the datacentre,” commented senior analyst Andy Buss. “Multi-core
processing, I/O acceleration and virtualisation will change the way
security managers and vendors architect security solutions.”
In security hardware Cisco continued to dominate with a market
share more than double that of its nearest competitor. The rapid
adoption of advanced security technologies on the Adaptive Security
Appliance range (ASA), such as SSL VPN, intrusion protection and
advanced content control through the partnership with Trend Micro,
have offset declines in the PIX market. Juniper Networks executed
well in 2006 to take the overall number two position in security
hardware, with leadership in SSL VPNs and high-end firewalls helping
cement enterprise acceptance. “The alliance with Symantec for
content security on Juniper Networks’ appliances should start to
reap rewards through 2007, but it will require work to integrate the
two companies’ go-to-market strategies,” Buss added.
Third-placed vendor Nokia had a tough year in the security
hardware market. “Product supply issues and competition from
Crossbeam Systems in the market for Check Point appliances have
affected Nokia’s performance and it will need to regroup and refocus
on the security market in 2007,” Buss said. “Meanwhile Fortinet has
developed into a vendor of note with its approach of integrated
security management across both network and content security,
intensifying competition in the hardware firewall market and taking
the fourth spot in overall security hardware value.”
About the Enterprise Security Analysis Worldwide service
The shipment estimates discussed in this release come from
Enterprise Security Analysis Worldwide, the leading-edge continuous
information service designed specifically for enterprise security
vendors. Canalys provides a unique and comprehensive view of the
market, with detailed segmentation by product type, functionality,
routes to market and end-user type. In addition to quarterly market
share estimates, clients receive forecasts, quarterly trends
presentations and direct access to Canalys analysts by telephone,
e-mail and face-to-face.
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About Canalys
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recognised as a key provider of continuous advisory services and
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market data and trends analysis.
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