According to research firm Frost & Sullivan, the size of the Asia-Pacific network security market has dropped two-thirds in comparison to 2008's stellar figures.
This year will see a growth rate of a mere 6.5 percent as a consequence of the global financial crisis. However despite the weak spending, business commitment to network security remains strong, said Frost & Sullivan Industry Manager Arun Chandrasekaran.
"Most companies recognise that the risks of not implementing adequate IT security far outweigh the cost of investing in it," he says.
"Amidst pressure to control CAPEX (capital expenditure) and stretch every dollar, companies are more likely to deploy the more affordable converged security solutions," Chandrasekaran adds. "Adoption of managed security services is also expected to rise as companies try to minimise outright purchases."
New analysis from Frost & Sullivan on the Asia-Pacific Network Security Market, finds that the market - covering 14 Asia-Pacific countries - was worth an estimated US$1.81 billion in 2008, growing 17.9 percent from the year before. A modest CAGR (compound annual growth rate) of 7.5 percent is expected from 2009 to 2015, to gross revenues of just over US$3 billion by end-2015.
The Australian market was worth an estimated US$187.4 million in 2008, growing four percent from the year before with projected growth of 5.3 per cent in 2009. A CAGR of 4.3 percent is expected from 2009 to 2015, to gross revenues of US$252.2 million by end-2015. The New Zealand market was worth an estimated US$28 million in 2008, growing 23.7 percent from the year before with projected growth of 9.2 percent in 2009. A CAGR of 4.7 percent is expected from 2009 to 2015, to gross revenues of US$38.6 million by end-2015.