NEEDHAM, Mass.–(BUSINESS WIRE)–#IDCTracker–Worldwide revenue in the security appliance market grew 11.3% year over year and 15.0% quarter over quarter in the fourth quarter of 2020 (4Q20), according to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker. Overall market revenue totaled $5.3 billion, an increase of $538 million from the fourth quarter of 2019. Unit shipments in 4Q20 increased 10.2% year over year and 15.3% compared to 3Q20.
The unified threat management (UTM) market accounted for 79.5% of the year-over-year increase in revenue, thanks largely to the strength of sales in the Asia/Pacific region and regardless of the on-going pandemic. However, despite being significantly smaller overall, virtual private network (VPN) sales grew the most with year-over-year revenue growth of 21.8%. Legacy security appliances, including traditional firewall and intrusion detection and prevention systems (IDS/IPS) experienced slight declines in unit shipments for the quarter.
Regional Highlights
From a geographic perspective, China carried the security appliance market for the quarter, growing by 27.4% year over year and 60.3% quarter over quarter with revenues increasing $531.4 million compared to 3Q20. The rest of the world (excluding China) delivered 6.4% annual growth and 4.3% sequential growth. Additionally, although significantly smaller than China, the Middle East & Africa region grew by an impressive 24.2% year over year and 39.1% compared to 3Q20. Other regions that experienced strong annual growth for the quarter were Asia/Pacific (excluding Japan and China) at 11.1%, Central and Eastern Europe at 9.7%, and Japan at 9.1%.
“While the ongoing pandemic has dampened the appetite for on-premise security hardware around the world, standout performances in China and a few other regions helped the security appliance market grow an impressive 11.3% year over year,” said Pete Finalle, senior analyst, Security and Trust at IDC.
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Top 5 Companies, Worldwide Security Appliance Revenue, Market Share, and Growth, Fourth Quarter of 2020 (revenue in US$ millions) |
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Vendor |
4Q20 Revenue |
4Q20 Market Share |
4Q19 Revenue |
4Q19 Market Share |
4Q20/4Q19 Growth |
|
T1. Palo Alto Networks |
$794.0 |
15.0% |
$644.7 |
13.6% |
23.2% |
|
T1. Cisco |
$770.1 |
14.6% |
$757.5 |
15.9% |
1.7% |
|
3. Fortinet |
$642.0 |
12.1% |
$528.3 |
11.1% |
21.5% |
|
4. Check Point |
$439.9 |
8.3% |
$450.5 |
9.5% |
-2.4% |
|
T5. Huawei |
$204.2 |
3.9% |
$145.6 |
3.1% |
40.3% |
|
T5. SonicWALL |
$174.4 |
3.3% |
$182.6 |
3.8% |
-4.5% |
|
Rest of Market |
$2,262.8 |
42.8% |
$2,040.1 |
43.0% |
10.9% |
|
Total |
$5,287.4 |
100% |
$4,749.4 |
100% |
11.3% |
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Source: IDC Worldwide Quarterly Security Appliance Tracker Q4 2020, March 11, 2020 |
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* Note: IDC declares a statistical tie in the worldwide security appliance market when there is a difference of one percent or less in the share of revenues or shipments among two or more vendors.
In addition to the table above, a graphic illustrating the worldwide revenue share of the top 5 security appliance companies over the previous five quarters is available by viewing this press release on IDC.com.
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