Network Security Market up 30% in Q4

SAN JOSE, Calif. -- Worldwide network security appliance and software revenue topped $3.7 billion in 2004, up 30% from 2003, and is projected to grow to $5.5 billion in 2008, according to Infonetics Research's quarterly worldwide market share and forecast service, Network Security Appliances and Software.

Worldwide network security revenue is up 5% between 3Q04 and 4Q04, with growth in all categories except VPN/firewall software. Revenue is expected to grow 25% to $1.2 billion in 4Q05.

Strong growth in the network security market is being driven by the many new viruses, malware, and targeted attacks that surface every day, compelling companies of all sizes to invest in security. Many areas in the market will continue single and double-digit quarterly growth over the next few years.

"VPN and firewall appliances are the backbone of network security, and will continue to function as such for a long time," said Jeff Wilson, principal analyst at Infonetics Research. "New technologies will appear, and often start life as standalone products, but eventually their key features will be absorbed into the multi-function VPN/firewall appliances. IPS and gateway anti-virus technology are good examples of this."

Infonetics Research's 2003 revenue forecasts for the 2004 VPN and firewall product market, VPN and firewall appliance market, and the IDS/IPS market were all within one or two percent of actual revenue.

4Q04/2004 Market Highlights

Network Security Appliances and Software tracks VPN and firewall appliances in six price-banded categories, hardware secure routers, SSL VPN gateways, VPN and firewall software, host- and network-based IDS/IPS products, and gateway anti-virus products. Forecasts are updated quarterly and cover all regions (North America, EMEA, Asia Pacific, CALA, and worldwide).

Companies tracked in this service include 14South, AEP, Avaya, Aventail, Check Point, CipherOptics, Cisco, Computer Associates, Crossbeam, CyberGuard, D-Link, Enterasys, F5, Fortinet, Intel, Juniper, Lucent, McAfee, NETASQ, Netilla, Nokia, Nortel, Secure Computing, SonicWALL, Symantec, TippingPoint, WatchGuard, Whale, ZyXEL, and others.

Infonetics Research Inc.