Slow now, better times ahead for APAC network security market

Peter Dinham
Monday, 15 June 2009 14:03

Business IT - Security

The market in the ASEAN region for network security vendors grew a very healthy 20 percent last year, while the Australian market grew by around four percent over 2007.

The latest market survey by Frost & Sullivan, reveals that the epicentre of Asia Pacific growth came from emerging markets like China and India, as well as ASEAN countries including Vietnam and Indonesia with year-on-year growth rates of above 20 percent.

According to Frost & Sullivan industry manager, Arun Chandrasekaran, the Asia-Pacific network security market is expected to grow by 6.5 percent in 2009, dropping nearly two-thirds from the robust growth in 2008.

“Last year was perhaps too soon for the Asia-Pacific region to feel the full brunt of the financial meltdown.  The final quarter however - typically the strongest quarter - was a tell-tale of what to expect in 2009, growing a dismal 1.5 percent over the third quarter of 2008.

However, Chandrasekaran says that despite the weak sentiments and businesses exercising caution in spending, the commitment to network security investments remains strong and, he adds, “most companies recognise that the risks of not implementing adequate IT security far outweigh the cost of investing in it.”

According to Chandrasekaran, “amidst pressure to control CAPEX (capital expenditure) and stretch every dollar, companies are more likely to deploy the more affordable converged security solutions,” and, he says “adoption of managed security services is also expected to rise as companies try to minimise outright purchases.”

Frost & Sullivan finds, in its latest report, that the APAC network security market  - covering 14 Asia-Pacific countries - was worth an estimated US$1.81 billion in 2008, growing 17.9 percent from the year before. The firm also says a modest CAGR (compound annual growth rate) of 7.5 percent is expected from 2009 to 2015, to gross revenues of just over US$3 billion by the end of 2015. 

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