Infonetics Research says in a new report that the worldwide network security appliance and software market is down 4% to $1.3 billion from 4Q07 to 1Q08, primarily due to normal seasonal trends.
Infonetics’ report, Network Security Appliances and Software, indicates the North American network security market is down sequentially for the first time in almost 4 years, decreasing 7% in 1Q08, representing a loss rather than just slightly slower growth, as is typical. As a comparison, Asia Pacific, Europe/Middle East/Africa (EMEA), and Caribbean/Latin America are down only 1% or 2%, in line with typical 1st quarter results.
“Most network security vendors reported some slightly higher than normal sluggishness in North America, primarily among large customers, though most vendors reported that customers didn’t plan to decrease spending overall, just delay it slightly. We project a return to very slight growth in the last 3 quarters of 2008, with stronger growth forecast in 2009,” said Jeff Wilson, principal analyst for network security at Infonetics Research.
Other highlights from the report:
- The overall worldwide network security appliance and software market was down 4% to $1.3 billion
- Secure routers and SSL VPN gateways are forecast to grow in the single- to double-digit percents quarterly for the most part through 2011
- Cisco remains the revenue-leading vendor overall with 39% of total network security appliances and software in 1Q08 (up 2.5 points from 4Q07), in large part due to strong IDS/IPS and high-end appliance sales
- Integrated appliances and software made up 85% of all network security revenue in 1Q08, IDS/IPS made up 15%