Unified Threat Management Was Main Driver of the EMEA Security Appliance Market in 2013

The FINANCIAL — LONDON and PRAGUE — Middle East and Africa Quarterly Security Appliance Tracker, 4Q14 vendor revenue for the EMEA security appliance market reached $688.5 million, a 0.4% decrease over the same quarter a year ago, according to the International Data Corporation (IDC) Europe.

Shipments declined by 8.7% year on year with 185,019 units shipped. For 2013, the security appliance market vendor revenue totalled about $2.5 billion, representing a 2.4% increase over 2012, according to IDC.

IDC currently forecasts the security appliance market to reach nearly $4.2 billion in value by 2018, growing at a 5.4% CAGR over the five-year forecast, according to the new release of the security appliance tracker forecast

Cisco remained the top overall security appliance vendor with 18.9% market revenue share for 4Q13 and 19.4% for 2013. In 2013 the gap between Cisco and Check Point, its closest rival, shrank to 1.7 percentage points (3.3 points in 2012).

Unified threat management (UTM) remained the largest and the fastest growing security appliance product category. In 2013 UTM appliances increased by 33.2% year on year, representing nearly 45% of total market revenue, according to IDC.

The Western European market showed similar flat growth in security appliances, with $522.7 million revenue in 4Q13, representing 0.7% growth over the same quarter in 2012. Total revenue generated 2013 reached $1.94 billion, with yearly growth of 2.4% for the same period last year.

IDC predicts the Western European security appliance market to reach $3.1 billion in value in 2018, growing at 5.0% CAGR over the forecast period, according to IDC.

The security appliance market in Central and Eastern Europe, Middle East, and Africa (CEMA) showed a moderate contraction of 3.6% year on year in 4Q13, reaching $165.8 million in vendor revenue. CEMA vendor revenue for 2013 totalled to $601.0 million and rose 2.4% compared to 2012.

The forecast value growth in CEMA for 2014 was reduced from 6.6% to 4.1% year on year due to worse than expected economic recovery in CIS countries and current political unrest in Russia and Ukraine, which could have a long-term negative impact on the whole of Central and Eastern Europe. The total CEMA market is expected to grow in value at 6.3% five-year CAGR by 2018, according to IDC.