We recently completed the security appliance APEJ (Asia/Pacific excluding Japan) market sizing and forecast. Here are some key takeaways:
- The security appliance market remains relatively positive and is expected to reach US$3,059 million in customer revenues by 2017.
- We expect the growth to be strong especially in fast-growing, emerging markets like China, India, and the ASEAN.
- We expect the security appliance market to enjoy healthy growth across various market segments, particularly in the UTM, content management (Web, Messaging) and IPS segments.
- Driven by the adoption of next-gen firewalls, the UTM function is leading the demand curve, carving out 40% of the security appliance pie by 2017 as compared to just 32% in 2012.
Few interesting trends:
- Product refreshes, especially to address increasing networking speeds, continue to fuel security appliance growth. Further, businesses are demanding more efficient security projects to be deployed with a better understanding of their needs.
- The adoption and expansion of virtual, cloud, mobile, and wireless technologies and solutions have created new and different threats to the network. Moreover, growing number of devices and applications, there is an increase in the threats brought into the corporate network by user-owned devices. Thus, to control the endpoint, organizations need to focus on the place where they do have control which is the network. This means spending potential on UTM/Next-generation firewalls or IPS.
- Largely commoditized, firewalls/UTMs are usually a cornerstone in any organization's security strategy. However, application awareness and control will continue to be a key feature demanded by organizations to address the ever-blurring line between personal and corporate use of the Web and better enable business processes and productivity.
- Integrating more advanced malware detection will be another key driver in the UTM/next-generation firewall and IPS spaces. Application-aware, virtualization-centric, and datacenter-focused solutions will drive growth in the forecast period.
- Many APEJ organizations like to have network-security solutions remain on-premise so that they can control the flow of data into and out of their networks in the cloud environment. The latency, delays and risks associated with running confidential data to/from a cloud provider are greater than organizations will be willing to tolerate.