Palo Alto widens revenue lead in security appliance market
- 10 September, 2021 10:41
Palo Alto Networks has widened its revenue lead as the top vendor in the global security appliance market during the second quarter of 2021, clocking in US$877.4 million during the period.
According to analysis firm IDC’s Worldwide Quarterly Security Appliance Tracker, this represented year-on-year growth of 15.5 per cent, up from US$759.4 million for the same period last year, and made up 18.9 per cent of the quarter’s market share.
In second place was Cisco, which grew only 5.4 per cent, from US$711.4 million to US$749.8 million, and held onto 16.1 per cent market share.
While Fortinet was in third, its year-on-year growth shot up by 24.5 per cent, from US$534.4 million to US$665.2 million, and registered 14.3 per cent market share.
Palo Alto’s boost in the market came as the overall market grew by 12 per cent year-on-year during the quarter, up to approximately US$4.7 billion, with shipments increasing by 15 per cent to nearly 1.3 million units.
"The global security appliance market delivered another quarter of strong growth in Q2 2021, which highlights the relevance of security hardware as part of mixed strategies designed to protect hybrid ecosystems within different vertical industries," said Carlo Dávila, research manager, Enterprise Trackers at IDC.
Revenue from the unified threat management market grew double digits, up 17.1 per cent, and made up 65 per cent of total vendor revenue for security appliances for the quarter.
Meanwhile, most of the other markets, which include content management, intrusion detection and prevention (IDP) and virtual private network (VPN), all experienced single-digit growth.
The only exception was the traditional firewall market, which declined slightly.
On a regional basis, the Asia Pacific and Japan market experienced a dynamic growth rate of 23.4 per cent during the quarter.
In terms of year-on-year revenue growth however, China experienced the fastest growth rate over the period of 33.8 per cent, followed by the Middle East and Africa with 14.9 per cent.
On a market share basis, the combined Americas region made up nearly half of the total security appliances market revenues with 48.2 per cent.
IDC’s analysis of the security appliance market comes days after fellow analysis firm Frost & Sullivan pointed at the increasing acceptance of remote work and the adoption of cloud, the remote workplace, collaboration and security as factors driving growth in the Asia Pacific network security market, which is set to hit US$7.32 billion by 2025.