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Increased UTM Demand and Strong Regional Trends Drive Security Appliance Growth in Q2 2020, According to IDC

FRAMINGHAM, Mass.--(BUSINESS WIRE)--#IDCTracker--According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, the total security appliance market delivered solid unit shipment and revenue growth in the second quarter of 2020 (2Q20). Worldwide revenue increased 7.5% year over year in 2Q20 to $4.2 billion. Unit shipments experienced similar growth, increasing 8.0% year over year to a little over 1.1 million units.


The unified threat management (UTM) market segment accounted for the most significant revenue growth. This segment saw an increase of $250 million in revenue for 2Q20 when compared to the same quarter a year ago. UTM continues to drive market expansion and as the largest overall segment, accounting for 61.8% of the worldwide security appliance market, it is still showing double-digit growth at 10.7% year over year in 2Q20. In addition to UTM, the Web security segment continues to show strong signs of growth, increasing by 10% year over year. The intrusion detection and intrusion prevention segments (IDS and IPS) declined by similar amounts year over year at -6.2% and -5.1% respectively.

Regional Highlights

The United States accounted for 44.3% of the total security appliance market revenue in 2Q20, up from 42.7% a year ago and with double-digit annual growth of 11.6%. The two other regions showing double-digit growth compared to 2Q19 are Asia/Pacific (excluding Japan and China) and Japan with growth of 10.2% and 14.1% respectively. The Middle East and Africa (MEA) region grew 8.9% year over year, while Central and Eastern Europe (CEE) saw a 7.2% annual expansion. Western Europe grew 5.5% year over year. Canada and Latin America showed growth for 2Q20 as well with a 5.4% and 4.6% annual increase respectively. The only region showing a slight decline for the quarter was China with the total security appliance market in the region declining 3%.

"Despite the ongoing pandemic, network security appliances experienced a strong 10.0% growth rebound in 2Q20 over the previous 1Q20 decline. This was due to the increased spending to enable the expanded remote workforce and to secure on-premise resources," said Pete Finalle, senior research analyst, Security and Trust at IDC.

Top 5 Companies, Worldwide Security Appliance Revenue, Market Share, and Growth, Second Quarter of 2020 (revenue in US$ millions)

Company

2Q20
Revenue

2Q20
Market
Share

2Q19
Revenue

2Q19
Market
Share

2Q20/2Q19
Growth

1. Palo Alto Networks

$759.4

18.1%

$633.7

16.3%

19.8%

2. Cisco

$711.4

17.0%

$660.8

16.9%

7.7%

3. Fortinet

$534.4

12.7%

$452.9

11.6%

18.0%

4. Check Point

$420.0

10.0%

$405.2

10.4%

3.7%

5. SonicWALL

$164.1

3.9%

$158.8

4.1%

3.3%

Others

$1,604.1

38.3%

$1,587.8

40.7%

1.0%

Total

$4,193.4

100%

$3,899.3

100%

7.5%

Source: IDC Worldwide Quarterly Security Appliance Tracker Q2 2020, September 3, 2020

In addition to the table above, a graphic illustrating the worldwide market 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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Lidice Fernandez
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Michael Shirer
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508-935-4200