EMEA Security Appliance Shipments to Accelerate in 2015-2017, According to IDC

LONDON and PRAGUE, 26 March 2015 — According to the International Data Corporation (IDC) Europe, Middle East and Africa Quarterly Security Appliance Tracker, 2014 value for the EMEA security appliance market reached $3.38 billion, a moderate 2.9% year-on-year growth. Shipments increased by 3.5% year on year to 732,324 units. During the next three years the security appliance market is expected to accelerate by about 6%–7% year-on-year and reach $4.07 billion (857,714 units) by the end of 2017.

EMEA Market Highlights

Cisco secured the top position in 2014 on the overall security appliance vendor market with 18.4% value share. Check Point tried to close the gap with the leader and ended the year with 17.5% value market share. Over the last five years Check Point has been increasing pressure on Cisco and inching closer to the leading position in EMEA.

Unified Threat Management (UTM) appliances increased by 14.4% year on year in 2014, representing 49.4% of the total vendor revenue. UTM appliances will exceed 50.0% value share of all security appliances shipped in the region from 2015 and remain the fastest growing product category over the next three years.

“The threat landscape is evolving faster than ever, and with security breaches often headlining the news, companies need to understand the value of security in their organization and act accordingly” said Romain Fouchereau, manager, security appliance research. “Approaching information security can be a daunting task, but protecting the organization's network, sensitive data, and intellectual property should be a priority for any business.”

Western Europe Market Highlights

The Western European market showed similar growth towards security appliances, with $2,579 million in value in 2014, representing 3.7% growth over 2013. As in previous years, the main market driver are unified threat management appliances, which represented just over half of the value in 2014, with an associated 14.0% growth.

“Unified solutions have now been leading the security appliance market for several years," said Fouchereau. "UTM solutions enable companies to simplify network security and do so in a very cost effective way. IDC forecasts the trend to continue over the coming years and UTM's market share in Western Europe to grow significantly."

Central and Eastern Europe, Middle East, and Africa Market Highlights

The security appliance market in Central and Eastern Europe, Middle East, and Africa (CEMA) was flat at 0.3% growth year on year in 2014, reaching $797.70 million in value. The Russian market contracted by 22.7% year on year due to an economic slowdown, expansion of economic sanctions and depreciation of the Russian rouble in 4Q14. If we exclude Russia, the security appliance market in the region grew quite dynamically, increasing by almost 10% year on year in value. The Russian market will continue to decline over 2015 and the first signs of recovery are not expected earlier than in 2016.

"Although the Russian government declared import substitution as one of the main goals for the coming years, this would be difficult to achieve in IT security, even in the medium term," said Oleg Sidorkin, senior research analyst at IDC. "As a result, UTM and intrusion detection and prevention (IDP) appliances will be among the critical products least bolstered by localization."

Top 5 Vendors, EMEA Security Appliance Market Value, 2014

Vendor	2013 Value	2013 Market Share	2014 Value	2014 Market Share	Growth 2014/ 2013
Cisco	$617.89	18.8%	$621.44	18.4%	0.6%
Check Point	$579.95	17.7%	$592.35	17.5%	2.1%
Fortinet	$235.69	7.2%	$303.07	9.0%	28.6%
Palo Alto Networks	$117.18	3.6%	$191.39	5.7%	63.3%
Juniper	$217.68	6.6%	$180.07	5.3%	-17.3%
Others	$1,513.74	46.1%	$1,488.73	44.1%	-1.7%
Total Market	$3,282.13	100.0%	$3,377.05	100.0%	2.9%
Cisco	$617.89	18.8%	$621.44	18.4%	0.6%
Check Point	$579.95	17.7%	$592.35	17.5%	2.1%
Fortinet	$235.69	7.2%	$303.07	9.0%	28.6%
Palo Alto Networks	$117.18	3.6%	$191.39	5.7%	63.3%
Juniper	$217.68	6.6%	$180.07	5.3%	-17.3%
Others	$1,513.74	46.1%	$1,488.73	44.1%	-1.7%
Total Market	$3,282.13	100.0%	$3,377.05	100.0%	2.9%
Source: IDC, 2015

iCharts

IDC's EMEA Quarterly Security Appliance Tracker offers the ability to quickly and effectively respond to today's dynamic security server appliance market by keeping pace with evolving functionality and the rapid deployment of new models competing in the marketplace. The product provides insight into customer trends by delivering geography-specific product line and vendor market share information in an easy-to-use product interface, enabling quick table customization for business planning activities.

To purchase this document, please contact your local IDC office or visit www.idc.com.

Companies Covered:

Check Point Software Technologies Ltd., Juniper Networks, Inc., Fortinet, Inc., Palo Alto Networks, Inc., Cisco Systems, Inc.

Regions Covered:

Central and Eastern Europe, Middle East and Africa, Western Europe

Topics Covered:

App stores, Firewall and VPN security appliance products, Intrusion detection and prevention, Messaging security appliances, Unified threat management, Virtual private network products, Web and messaging WAM security appliances, Web security appliances

Contact

For more information, contact:

Romain Fouchereau
rfouchereau@idc.com
44 20 8987 7100