The security appliances market in Q4 2024 demonstrated steady growth, driven by the increasing need for cybersecurity infrastructure.
Total security appliances market revenue reached $5.1 billion, marking a 1.5 percent increase, while unit shipments rose by 2.7 percent to 1.2 million units. This growth underscores the demand for hardware-based security solutions despite the shift toward cloud and software-based security models, according to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker.
IDC’s recent updates to the Security Appliances taxonomy have refined the market scope by excluding non-hardware revenue from reported figures. The revised metrics track Vendor Revenue (new hardware sales) and Renewals/Firmware update revenue, which together contribute to the Total Market Revenue figure. These changes provide deeper insights into revenue composition and market share distribution.
The security appliances market continues to be shaped by hybrid security models, where hardware remains a foundational component, complemented by subscription-based services and cloud solutions. This approach allows organizations to fortify their security postures while leveraging AI-driven threat detection and response mechanisms.
AI-integrated security appliances are becoming more prevalent, offering enhanced automation and real-time analytics to counter sophisticated cyber threats. As organizations prioritize resilience, the role of hardware-based solutions in cybersecurity strategies remains critical.
Regional performance in Q4 2024 showed significant variations. The EMEA region posted an impressive 12.4 percent growth, compensating for a decline of 4.4 percent in the APAC market. Western Europe, in particular, drove EMEA’s success, recording a 15.4 percent year-over-year growth.
This strong performance in EMEA highlights investments in cybersecurity infrastructure, regulatory compliance, and enterprise security upgrades. Meanwhile, APAC’s decline reflects macroeconomic factors and shifting regional security spending patterns.
Fortinet led the security appliances market with an 18.95 percent share, up from 17.61 percent in Q4 2023, showing strong revenue growth from $877.56 million to $959.19 million.
Palo Alto Networks followed closely, increasing its share from 18.08 percent to 18.71 percent, with revenue rising from $901.41 million to $947.29 million.
Cisco also gained security appliances market share, climbing from 10.83 percent to 11.44 percent, driven by a revenue increase from $539.62 million to $579.17 million.
Check Point saw moderate growth, expanding its market share from 6.96 percent to 7.52 percent, as revenue rose from $346.85 million to $380.42 million.
In contrast, TopSec experienced a slight decline in security appliances market share from 3.13 percent to 2.88 percent, with revenue decreasing from $155.93 million to $145.85 million.
The rest of the market collectively lost share, dropping from 43.40 percent in Q4 2023 to 40.50 percent in Q4 2024, despite total market revenue increasing from $4.98 billion to $5.06 billion. These shifts indicate strengthening positions for leading vendors, particularly Fortinet and Palo Alto Networks, as well as growing consolidation within the security appliances industry.
Baburajan Kizhakedath
