Cisco Systems Maintains Its Leadership in the Security Appliance Space



Cisco Systems leads the security appliance market

Earlier in this series, we discussed FireEye’s (FEYE) 1Q17 results. We also discussed its recent launch of Helix in the endpoint security space.

Cisco Systems (CSCO) retained its lead the security appliance market in 2016 with a 15.4% market share. CSCO was followed by Check Point Software Technologies (CHKP) and Palo Also Networks (PANW), which held 12.9% and 11.9% of the market share, respectively. Fortinet (FTNT) and Huawei rounded out the top five players list.

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Although Cisco Systems leads the security alliance space, its market share fell from 16.2% in 2015 to 15.4% in 2016. Check Point Software Technologies and Palo Alto Networks are rapidly scaling up in this space. Both companies increased their market share from 2015 to 2016, as the chart above shows.

UTM drove growth in the security appliance market

Overall security appliance revenues grew 8.9% to $11.5 billion in 2016. The UTM (Unified Threat Management) sector almost tripled in size in the last five years, with its revenues growing 16.7% year-over-year to reach $5.6 billion in 2016. UTM contributed nearly half of the security appliance market revenues and was responsible for driving growth in the overall security appliance market.

The security appliance market experienced growth in all regions. Asia-Pacific, in particular, showed strong growth.


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