The global cybersecurity technology market rose by 9.9 percent year-on-year, reaching $21.1 billion in the second quarter of 2024, according to Canalys. This growth was largely driven by larger deals, as cyber security vendors emphasized cross-selling their platforms to enhance customer engagement.
The latest Canalys report highlights that the top 12 cybersecurity vendors significantly benefited from early customer transitions to integrated platforms, collectively accounting for 53.2 percent of total spending in Q2 2024, up from 51.9 percent the previous year.
Leading cyber security vendors and their market share in Q2 2024 are: Palo Alto Networks (9.7 percent), Fortinet (7.0 percent), Microsoft (6.1 percent), Cisco (5.8 percent), CrowdStrike (4.5 percent), Okta (3.6 percent), Check Point (3.5 percent), Zscaler (3.0 percent), Symantec (2.7 percent), IBM (2.5 percent), Trellix (2.4 percent), and Splunk 2.4 percent.
Vendor Strategies
Palo Alto Networks continues to lead the market with an 11.2 percent revenue growth, fueled by the adoption of its Prisma Cloud, Cortex for SecOps, and network security solutions. The company’s acquisition of IBM’s QRadar assets is expected to further bolster its platformization strategy. Palo Alto Networks reported an acceleration in bookings in the latter half of the year, highlighting over 1,000 platformizations among its 5,000 largest customers.
Fortinet, with an 11.1 percent revenue increase, ranked second in the cybersecurity business. Fortinet’s growth accelerated in Q2, largely due to its focus on SecOps and SASE. Fortinet’s acquisition of Next DLP, a cloud-native Data Protection platform, will facilitate its entry into both the standalone enterprise DLP market and integrated markets with FortiSASE.
Microsoft achieved the highest growth rate among major players, recording an 18.6 percent increase in cybersecurity revenue. By emphasizing platform adoption through E5 license enablement, Microsoft expanded its cybersecurity market share, with over 1,000 paid customers utilizing Copilot for security solutions. Microsoft also secured significant revenue with Defender for Cloud, surpassing $1 billion in the past year.
Cisco completed its acquisition of Splunk, enhancing its platform approach and reporting a 5.3 percent revenue increase (excluding Splunk). The company secured numerous large transactions, focusing on modernizing and automating network operations through next-generation AI applications.
CrowdStrike experienced a substantial 33.2 percent revenue growth, driven by the adoption of its Falcon platform. However, the company anticipates potential impacts on future results due to the fallout from an outage in July. Despite this, CrowdStrike’s reliance on channel partners for new business has proven successful, with more than $700 million in total deal value from its Falcon Flex subscription program.
Industry Insights and Future Directions
Matthew Ball, Chief Analyst at Canalys, emphasized that cybersecurity vendors are reorienting their platforms to simplify customer experiences by consolidating redundant legacy products. He cautioned that this approach could heighten organizations’ dependency on fewer vendors, stressing the need for a balanced strategy.
Matthew Ball advocated for an integration-first strategy among platform vendors, which would support Independent Software Vendors (ISVs) and streamline multivendor procurement. The evolving landscape necessitates collaboration with transactional and service-led partners, including Global System Integrators (GSIs), Managed Security Service Providers (MSSPs), and even cyber-insurers. He noted that the selection of the right vendor platform will be crucial for partners in navigating future market changes.
Matthew Ball will share further insights at the cybersecurity Expert Hub sessions during the 2024 Canalys Forums in Berlin, Miami, and Bali.
Baburajan Kizhakedath
