Slow now, better times ahead for APAC network security market

Peter Dinham
Monday, 15 June 2009 13:03

Business IT - Security

Chandrasekaran says the Australian market was worth an estimated US$187.4 million in 2008, growing four percent from the year before with projected growth of 5.3 per cent in 2009, with a CAGR of 4.3 percent expected from 2009 to 2015, to gross revenues of US$252.2 million by end-2015. 

He also reports that the New Zealand market was worth an estimated US$28 million in 2008, growing 23.7 percent from the year before with projected growth of 9.2 percent in 2009, with a CAGR of 4.7 percent expected from 2009 to 2015, to gross revenues of US$38.6 million by end-2015.

Frost & Sullivan reports that firewall and IPSec VPN (Internet protocol security virtual private network) solutions continued to be the dominant choice, accounting for the bulk of revenues last year at 74.6 percent (US$1.34 billion), and that this trend is likely to continue through to 2015.

The SMB segment contributed slightly more than one-third to the total revenues in 2008, and Chandrasekaran says he expects this percentage to rise over the next few years.

“More and more SMBs are beginning to install at least first-layer perimeter defence on their corporate networks as converged or integrated security appliances have made network security affordable for smaller businesses. By 2015, SMBs will account for approximately 45 percent of the revenues.”

Chandrasekaran also says he believes that the banking sector will continue to be the biggest spender on network security moving forward, mainly due to rising regulatory compliance.  Moreover, he says, “following the loss of public confidence in the banking system after the financial debacle of September 2008, the last thing any CIO would want is a security breach to further dent the confidence of existing and potential customers.”