Enterprise networking major Cisco has dropped its security appliance market share to 16.2 percent in 2015 from 17.4 percent in 2014, according to IDC.
The gainers in the security appliance market were Check Point, Palo Alto Networks and Fortinet. Check Point, the #2 security appliance vendor, increased market share marginally to 12.8 percent from 12.7 percent.
The security appliance market share of Palo Alto Networks rose to 9.6 percent from 7.1 percent. The share of Fortinet increased to 8.4 percent from 7.2 percent.
McAfee also dropped its security appliance market share to 4.4 percent from 5 percent.
Security appliance market revenues in the fourth quarter increased 9.3 percent year over year to $2.95 billion, and units grew 6.2 percent year over year to 635,281.
In 2015, security appliance revenue increased 9.9 percent to $10.6 billion, while unit shipments increased 8.1 percent to 2.33 million units.
IDC said the Unified Threat Management (UTM) sub-market has doubled in size over the last five years reaching record high revenues of $4.85 billion for 2015 and year-over-year growth of 18.5 percent.
Firewall and Intrusion Detection and Prevention sub-markets gained 9.2 percent in Q4 and 7.9 percent in 2015.
The VPN and Content Management sub-markets declined 17.2 percent in Q4 2015 and 2.2 percent in 2015.
“The high growth in many appliance markets is an encouraging sign for IT security appliance vendors, with continued talk of going virtual, many customers still desire on-premise hardware solutions,” said Elizabeth Corr, research analyst, Security Products at IDC.
The United States market accounted for nearly 40 percent of the security appliance market revenue globally and grew at 13.1 percent in 2015. Asia Pacific (excluding Japan) is the second largest region representing 23 percent of total worldwide revenues and increased at 16.5 percent. Europe, the Middle East and Africa (EMEA) accounted for 26 percent of vendor revenue and showed an annual increase of 2.9 percent.