Global security appliance market revenue grew to $4.2B in Q2 2020
The total security appliance market delivered solid unit shipment and revenue growth in the second quarter of 2020 (2Q20), according to IDC.
Worldwide revenue increased 7.5% year over year in 2Q20 to $4.2 billion. Unit shipments experienced similar growth, increasing 8.0% year over year to a little over 1.1 million units.
The unified threat management (UTM) market segment accounted for the most significant revenue growth. This segment saw an increase of $250 million in revenue for 2Q20 when compared to the same quarter a year ago.
UTM continues to drive market expansion and as the largest overall segment, accounting for 61.8% of the worldwide security appliance market, it is still showing double-digit growth at 10.7% year over year in 2Q20.
In addition to UTM, the Web security segment continues to show strong signs of growth, increasing by 10% year over year. The intrusion detection and intrusion prevention segments (IDS and IPS) declined by similar amounts year over year at -6.2% and -5.1% respectively.
Regional highlights
The United States accounted for 44.3% of the total security appliance market revenue in 2Q 2020, up from 42.7% a year ago and with double-digit annual growth of 11.6%. The two other regions showing double-digit growth compared to 2Q19 are Asia/Pacific (excluding Japan and China) and Japan with growth of 10.2% and 14.1% respectively.
The Middle East and Africa (MEA) region grew 8.9% year over year, while Central and Eastern Europe (CEE) saw a 7.2% annual expansion. Western Europe grew 5.5% year over year.
Canada and Latin America showed growth for 2Q20 as well with a 5.4% and 4.6% annual increase respectively. The only region showing a slight decline for the quarter was China with the total security appliance market in the region declining 3%.
“Despite the ongoing pandemic, network security appliances experienced a strong 10.0% growth rebound in 2Q20 over the previous 1Q20 decline. This was due to the increased spending to enable the expanded remote workforce and to secure on-premise resources,” said Pete Finalle, senior research analyst, Security and Trust at IDC.