Security appliance market growth lowest since 2010 Q1

Revenue remained above $2bn but grew only 3.4 per cent compared to 7.2 per cent in the previous quarter

The year-on-year growth rate for revenue in the security appliance market in Q1 2013 was the lowest since the start of 2010, according to IDC.

In 2013's first quarter, global factory revenue was up 3.4 per cent annually – reaching the $2bn (£1.3bn) mark – but shipment levels dropped year on year by 6.8 per cent to 472,306. IDC claimed Cisco's transition to newer, more expensive appliances drove the shipment decline.

In the previous quarter, revenue rose 7.2 per cent to $2.3bn.

Cisco continued to lead the market, but its share dropped to 16.6 per cent following a 3.4 per cent year-on-year dip in its revenue to $335m. Third-place Juniper's sales slumped 17.7 per cent annually to $152m, widening the gap between it and second-place Check Point. The latter's sales jumped 5.7 per cent annually to $252m, meaning its market share (12.5 per cent) was more than double Juniper's (6.2 per cent).

The majority – 51 per cent – of the security appliance market revenue was transacted through the "other" vendors outside the top five, and IDC pinpointed Blue Coat, Palo Alto Networks and Sophos as having enjoyed strong annual growth in the quarter.

John Grady, research manager for security products at IDC, said security continues to be a priority for all businesses, which will drive further market growth.

"All organisations continue to prioritise security within their overall IT budget. With advanced, targeted threats a growing concern, IDC expects continued high single-digit growth in the overall security appliance segment over the course of 2013," he said.

Western European factory revenue rose 3.9 per cent annually, trailing the growth levels in the Canadian and Japanese markets which rocketed 16.4 per cent and 8.6 per cent respectively.