Market Insight

RESEARCH NOTE - DDoS Prevention Appliance Revenue Finally Crosses Half-billion Mark

July 27, 2016

Jeff Wilson Jeff Wilson Chief Analyst, Cybersecurity Technology

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IHS Markit analysis and commentary on the H1 2016 DDoS Prevention Appliances Biannual Market Tracker, which includes data for the half-year ended March 2016, follows. 

Bottom Line

  • In 2015, distributed denial of service (DDoS) mitigation product revenue finally crossed the half-billion mark, reaching $517 million
  • Arbor ranked first in DDoS prevention appliance revenue in 2015, followed by Radware
  • Driving adoption of hybrid solutions and sales of DDoS hardware at the lower end of the market are on-premises DDoS mitigation solutions that deal with the lower-bandwidth attacks that are plaguing many networks today

Outlook and Analysis

As is fairly typical for the first calendar quarter, distributed denial of service (DDoS) prevention appliance worldwide revenue was flat quarter-over-quarter in Q1 2016, totaling $147 million. However, year-over-year revenue growth in the DDoS mitigation product market was strong (+30 percent) in Q1 2016—signaling the market is maturing and falling into normal seasonal growth trends.

With the unprecedented number, size and coverage of distributed denial of service (DDoS) attacks since the floodgates opened in 2008, vendors who build DDoS prevention solutions have seen and continue to see a significant increase in demand.

The total number of DDoS attacks is skyrocketing, application layer attacks are becoming more common and even volumetric attacks are evolving. Volumetric attacks are bifurcating into very-high-velocity/bandwidth attacks (59G and up, and 15 million packets per second and up), and lower-bandwidth attacks (15G/3 million packets per second). This has significance for everyone, but particularly large enterprises, mid-sized cloud and hosting providers, and smaller telecom providers such as tier 2, tier 3 and regional carriers.

Much of the activity and growth in the DDoS mitigation appliance space is being driven from the data center (enterprise, hosting and cloud). DDoS prevention spending in data centers passed traditional carrier transport spending in 2012, and the data center segment is forecast to maintain a healthy 16 percent compound annual growth rate (CAGR) from 2015 to 2020. Enterprise data center deployments continue to grow particularly well, and major cloud, hosting, large service provider and major internet brands continue to invest in high-performance DDoS mitigation to protect their data centers from escalating attacks and deliver customized solutions to their hosting/cloud customers.

However, growing the most explosively is the mobile segment—forecast to grow at a 19 percent CAGR from 2015 to 2020 as mobile continues to ride the compound wave of a transition to IP and data, massive increases in capacity and a new role as a highly visible target for attacks.

DDoS Prevention Report Synopsis

The IHS Markit DDoS Prevention Appliances Biannual Market Tracker provides market size, vendor market share, forecasts, analysis and trends by revenue, units, and deployment location, including enterprise and carrier data centers, government networks, carrier transport and wired broadband networks, and mobile networks. Vendors tracked include A10, Andrisoft, Arbor Networks, Corero, F5, Fortinet, GenieNRM, Huawei, Juniper, Narus, Radware, RioRey and others.

For more information about purchasing IHS Markit information, contact the sales department at [email protected].

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