Security appliances incorporate a comprehensive range of practices, tools, and techniques interrelated closely to information security and operational technology security. This method uses preventive and responsive methods to defend networks and information from being attacked and compromised. Moreover, security appliances utilize web filtering, legacy malware protection, and advanced threat defense to defend users from Internet-borne threats and to help enterprises enforce Internet policy compliance.
The global security appliances market is segmented based on types, deployment modes, industry verticals, and geography. Based on type, the market is categorized into firewall, intrusion detection and prevention (IDP), content management, unified threat management (UTM), and virtual private network (VPN). Industry vertical segments include banking, financial services & insurance (BFSI), public sector, energy & utilities, retail, IT & telecom, manufacturing, aerospace & defense, healthcare, and others. Deployment mode segment is sub-segmented into cloud-based and on-premise deployment. Geographically, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
The global security appliances market is influenced by a number of factors including increasing cybercrime activities, rising bring-your-own-device implementation, increased demand for cloud-based solutions, and stringent government regulations. All these factors collectively create opportunities for security appliances market growth, while some of them account for limitations in the market. However, each factor would have its definite impact on the security appliances market share.
Following are the key factors affecting the global security appliances market.
Today, the cyber-attacks, which are mainly driven by skilled professional hackers and organized criminal groups, are growing at a rapid pace. The financial costs incurred due to data breaches are also increasing with the complexity of attacks. However, the aggregate impact of cybercrime on businesses is unknown, even small attacks such as viruses and worms cause billions of dollars financial loss each year. Therefore, organizations/companies need cost effective and efficient mechanisms to protect sensitive information from phishing, web hacking, hacktivism, and cyber espionage. In 2016, publicly engineered phishing emails along with other email attacks were a major concern. These attacks are expected to continue due to growth in Internet reliability and increase in usage of mobile devices in the corporate environment. Furthermore, phishing attacks are one of the most common security challenges faced by organizations that enable access to passwords, credit card information, and other sensitive information regarding phone calls, emails, and social media accounts.
The emerging bring-your-own-device (BYOD) trend among organizations has made devices and applications more vulnerable to malware and threats. Even though, the policy encourages employees to use mobile devices such as smartphones or tablets, this has made corporate data more vulnerable to cyber-attacks. This initiative has resulted in enterprise mobility, improving the organization productivity; however; the risk associated with this model, is encouraging organizations to implement effective security solutions. The BYOD trend is here to stay, due to its positive impact on the overall organizations overall productivity; hence, this trend is expected to stimulate the growth of security solutions in the coming years.
Cloud computing is widely implemented due to its powerful and flexible infrastructure possibility. Several organizations are moving to the cloud to streamline the storage of data, as cloud provides remote server access on the Internet, which in turn enables access to infinite computing power. Furthermore, the implementation of cloud-based model enables organizations to manage all the applications, as there is no invisibility with exceptionally challenging analytics functioning in the background. In addition, the adoption of cloud enables organizations to combine supplementary infrastructure technologies such as software-defined perimeters to create robust and highly secure platforms.
The report provides an overview of the trends, structure, drivers, challenges, and opportunities in the global security appliances market.
Porters Five Forces analysis highlights the potential of buyers & suppliers, and provides insights on the competitive structure of the market to determine the investment pockets of the market.
Current and future trends adopted by the key market players are highlighted to determine overall competitiveness of the market.
The quantitative analysis of the market through 20142022 is provided to elaborate the market potential.
WatchGuard Technologies, Inc., Cyberoam Technologies, Nozomi Networks, NetMotion, Inc., and others.
3.4. KEY PLAYER POSITIONING, 2016 (%).
8.2. CHECK POINT SOFTWARE TECHNOLOGIES LTD.
8.6. PALO ALTO NETWORKS, INC.
TABLE 27. COMPANY SNAPSHOT: CISCO SYSTEMS, INC.
TABLE 28. COMPANY SNAPSHOT: CHECK POINT SOFTWARE TECHNOLOGIES LTD.
TABLE 31. COMPANY SNAPSHOT: FORTINET, INC.
TABLE 32. COMPANY SNAPSHOT: PALO ALTO NETWORKS, INC.
TABLE 34. COMPANY SNAPSHOT: HONEYWELL INTERNATIONAL INC.
TABLE 36. COMPANY SNAPSHOT: JUNIPER NETWORKS, INC.
FIGURE 44. FINANCIAL PERFORMANCE: CISCO SYSTEMS, INC.
FIGURE 45. FINANCIAL PERFORMANCE: CHECK POINT SOFTWARE TECHNOLOGIES LTD.
FIGURE 48. FINANCIAL PERFORMANCE: FORTINET, INC.
FIGURE 49. FINANCIAL PERFORMANCE: PALO ALTO NETWORKS, INC.
FIGURE 51. FINANCIAL PERFORMANCE: HONEYWELL INTERNATIONAL INC.
FIGURE 53. FINANCIAL PERFORMANCE: JUNIPER NETWORKS, INC.
The global security appliances market is estimated to witness significant growth in Asia-Pacific and LAMEA, on account of rise in malware & phishing threats across various industries in countries, such as India, China, Germany, and Japan. The security appliances market share is projected to grow at a CAGR of 13.0% from 2016 to 2022, owing to increase in demand for application-specific products in the developed and the developing regions.
There is an increase in the adoption of security appliances in the Banking, Financial Services & Insurance (BFSI), IT & telecom, retail, healthcare, and energy & utilities. The security appliances market is influenced by the rise in demand for cloud-based solutions, increase in cybercrime activities, and growth in awareness about data security. In addition, rise in demand for application control specific security appliances and increased adoption of endpoint protection & cloud-based sandboxing contribute to the growth of the market. However, complexity of device security and the constant need to conform to industry standards & regulations limit the market growth.
India is the most attractive market in Asia-Pacific and is estimated to increase at a significant rate, owing to the surge in development across end-use industries and the increase in adoption of advanced technology to develop innovative security solutions.
Key players in the security appliances market are involved in the introduction of new features and capabilities, to enhance their existing product portfolio. This is anticipated to increase the product penetration and enable key providers to establish themselves in the emerging markets. For instance, in 2015, NetMotion, Inc. introduced Mobility 10.7, a VPN solution for Apple, Android, and Windows users.