Global network security finishes with strong growth The global network security appliance and software market is on track to end 2014 with strong growth: The market is up 7% in 3Q14 from 2Q14, to $1.76bn, and researcher Infonetics projects a solid Q4 as well. On a year-over-year basis, network security revenue increased 10% in 3Q14 over 3Q13-the market's best year-over-year growth in the last two years, it says.
Infonetics Research 3rd quarter 2014 Network Security Appliances and Software report, which tracks integrated security appliances, secure routers, SSL VPN gateways, VPN and firewall software, and intrusion detection and prevention products. "The network security appliance and software market is heading into the last quarter on something of a roll, though we look for quarterly revenue growth to slow by next year. Some large data centre and cloud projects are starting to wind down, and we're beginning a transition in earnest to the world of virtualised security," notes Jeff Wilson, principal analyst for security at Infonetics Research.
"That said," Wilson continues, "There will be pockets of high growth over the next five years for traditional network security appliances. Many mobile providers are making large purchases for their Gi/SGi footprints, and we're entering an era of delivering traditional network security solutions for industrial environments and the Internet of Things."
Integrated security (appliances, software, and SSL VPN products) makes up the majority of network security revenue, with the bulk coming from appliances. The year-over-year (3Q14 vs. 3Q13) performance of the top 4 network security vendors provides a good indication of who has the strongest momentum right now, with Palo Alto Networks increasing the most, followed by Fortinet, Cisco, and Check Point.