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​Security appliance market continues hot streak of growth

​Security appliance market continues hot streak of growth

Worldwide vendor revenues in the first quarter increased 5.5 percent year over year to $2.47 billion.

The total security appliance market showed positive growth in both vendor revenue and unit shipments for the first quarter of 2016 (1Q16), marking the eleventh consecutive quarter of year-over-year growth.

Worldwide vendor revenues in the first quarter increased 5.5 percent year over year to $2.47 billion, with IDC reporting that shipments grew 9.0 percent year over year to a total of 580,007 units.

According to findings, the Unified Threat Management (UTM) category has doubled in size over the last five years and continues to be the major driver for the overall market.

For the first quarter of 2016, the UTM market generated $1.25 billion in revenues for year-over-year growth of 16.9 percent, while the only other category with positive growth was Intrusion Detection and Prevention (IDP) with revenues of $372 million and 3.8 percent annual growth.

Meanwhile, the Firewall, Content Management, and Virtual Private Network (VPN) categories experienced a slow start to the year with year-over-year revenue declines of 4.2 percent, 6.7 percent and 24.2 percent, respectively.

“There has been a sharper decline than expected in many of the markets as the global economy is having an effect on the security market and shaping the growth rate to be lower than expected,” adds Elizabeth Corr, Research Analyst of Security Products, IDC.



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