Market Insight

RESEARCH NOTE - Network Security Market Up 8 Percent YoY in Q1; Intrusion Prevention Systems Continue to Rebound

June 10, 2016

Jeff Wilson Jeff Wilson Chief Analyst, Cybersecurity Technology

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IHS Technology analysis and commentary on the Network Security Appliances and Software Quarterly Market Tracker, which includes data for the quarter ended March 2016, follows.


The global network security appliance and software market kicked off the first quarter of 2016 (Q1 2016) with a typical seasonal performance: revenue declined 9 percent sequentially to $2 billion, but rose 8 percent from the year-ago quarter (Q1 2015).

Fortinet and Palo Alto continue to post solid year-over-year growth, and the intrusion prevention system (IPS) segment had another good quarter, starting the year up 12 percent year-over-year.

Every major network security vendor is using multiple strategies to embed themselves deeper into customer infrastructure — from pre-integrating complex security solutions to innovating virtualized solutions for the cloud and data center, as well as adding new advanced threat prevention (ATP) and cloud access security broker technology to broaden their security offerings.

Q1 2016 was relatively quiet on the consolidation front, after a tumultuous prior quarter that saw shakeups affecting Trend Micro, HP TippingPoint, Intel Security and Raytheon|Websense (now Forcepoint).

Looking at the year-over-year performance of the top five network security vendors provides a good indication of which vendors have the strongest momentum right now. Fortinet increased the most, followed by Palo Alto Networks, Check Point, Dell and Cisco. These vendors are expected to battle it out for market share for at least the next 18 months.

More Network Security Market Highlights

  • Intrusion prevention system (IPS) revenue totaled $328 million in the first quarter of 2016 (Q1 2016)
  • Interest in firewalls and IPSs with integrated sandboxing and advanced threat protection (ATP) is gaining steam
  • Data center firewall vendors are experiencing growth due to the integration of distributed denial of service (DDoS) mitigation and bulk Secure Sockets Layer (SSL) encryption and decryption
  • The worldwide network security appliance and software market is forecast to grow at a 6.4 percent compound annual growth rate (CAGR) from 2015 to 2020, hitting $11 billion in 2020 driven by virtualization and cloud enablement

Network Security Report Synopsis

The IHS Technology  Network Security Appliances and Software Quarterly Market Tracker provides worldwide and regional market size, vendor market share, forecasts through 2020, analysis and trends for integrated security appliances, secure routers, SSL VPN gateways, VPN and firewall software, and intrusion detection and prevention products. Vendors tracked include Array Networks, CA, Check Point, Cisco, Citrix, D‑Link, Dell, eSoft, F5, Fortinet, GTA, Hewlett Packard Enterprise (HPE), Huawei, Intel Security, ISS, Juniper, McAfee, NetASQ, Palo Alto Networks, WatchGuard, ZyXel and others.

For information about purchasing this report, contact the sales department at IHS in the Americas at (844) 301-7334 or [email protected]; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or [email protected]; or Asia-Pacific (APAC) at +604 291 3600 or [email protected].

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