Security Is Paramount
January 2003
The ever expanding corporate perimeter, the expansion of wireless devices, and the increasing governmental attention to network security is driving the network security market, while other networking equipment markets continue to struggle, according to In- Stat.The high-tech market research firm reports that the overall network security market will reach $5.8 billion in 2006, up from $2.3 billion in 2001, with the firewall/VPN segment representing the largest hardware security perimeter market. Further integration of security features into combination boxes will keep shipments strong through 2006. In addition, Intrusion Detection Systems and dedicated VPN devices will also experience healthy growth.
"Keeping the bad guys out of the corporate network continues to be a challenge for organizations of all sizes," says Jaclynn Bumback, an Analyst with In-Stat/MDR, "Fortunately, firewalls, Virtual Private Networks (VPNs) and Intrusion Detection Systems (IDS) work to protect the corporate border."
In-Stat/MDR has also found that:
Remote access is the top security budgetary items for 2003, with many plans to expand the network perimeter. 2003 will bring an increasing use of VPNs and secure virtual intranets/extranets to connect employees, partners, and customers.
Firewall/VPN appliances will experience the highest growth rate for security appliances, in both shipments and end-use revenue, with end-use sales expected to reach $3.8 billion by 2006.
The Americas continue to dominate shipments and revenue in the network security market, due to the overall higher adoption of networking technologies, as well as, the mere number of businesses in the US.
Japan accounted for nearly one quarter of all security shipments in 2001. Europe was the smallest segment of security shipments and revenue in 2001, but will experience the highest growth through 2006
Within the security market, there are a few vertical markets that stand-out as the early-adopters. These vertical segments include the government, financial, and healthcare verticals, whose growth has been propelled by public policy such as Gramm-Leach-Bliley, Health Insurance Portability and Accountability Act (HIPAA), and the National Strategy to Secure Cyberspace.
The government, financial, and healthcare markets together will account for 57% of shipments in 2006.
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