The global security appliance market is projected to grow at a CAGR of more than 11% by 2020.
Global security appliance market by large enterprises
Technavio predicts the security appliance market by large enterprises to grow at a CAGR of 12.25% to reach USD 57.45 billion by 2020. In 2015, large enterprises accounted for the largest market share with 43.41%. A major factor contributing to the growth of the market in the recent years is the growing concern over physical and network security in organizations across the globe.
“With growth in technology and changing corporate work culture, many employees are using their own devices such as iPhones, Android phones, and tablets for professional work. This has raised the need for securing corporate data and critical business information from misuse. As a result, organizations are implementing network security appliances to manage the access to employees and other stakeholders,” says Amrita Choudhury, a lead analyst at Technavio for IT security.
With an increase in the number of criminal activities in organizations, these organizations are implementing the use of physical security appliances to view and analyze the footage and take necessary steps in case of attacks.
Global security appliance market by government organizations
The global security appliance market by government organizations is envisaged to grow from USD 25.58 billion in 2015 to USD 44.52 billion by 2020. The use of physical security appliances by the government sector will grow during the forecast period because of increased awareness among government organizations to protect critical infrastructures from criminal attacks. Government bodies need to identify vulnerabilities in the system and accordingly invest in surveillance and security devices.
“As government organizations deal with confidential information, they are investing heavily in network security appliances to ensure data security and data confidentiality. This will help government organizations in maintaining homeland security,” says Amrita.
Global security appliance market by SMEs
The global security appliance market by SMEs was valued at USD 16.44 billion in 2015 and is likely to reach USD 25.3 billion by 2020.
As SMEs are cost-conscious, they do not have a budget allocated for security appliances. However, these organizations are prone to fraudulent activities and forced intrusions. This vulnerability will affect the adoption of physical security software solutions by these SMEs in order to prevent unauthorized individuals from entering secured premises. The adoption of network security solutions such as security software and cloud-based solutions will increase by 2020. This will lead to a slow growth in the market revenue when compared to other end-users.
The top three vendors in the global security appliance market are: Bosch Security Systems, Honeywell Security, and Tyco.