According to the International Data Corporation (IDC) Worldwide Quarterly Security Appliance Tracker, factory revenue and units rose in the fourth quarter of 2013 (4Q13) compared to the fourth quarter of 2012.
Worldwide factory revenue was up 6.8% year over year to $2.4 billion, as shipments increased 0.6% to 546,384 units. For the full year 2013, revenue grew 5.4% year over year to $8.6 billion, while shipments decreased for the first time since 2009, falling -2.1% to 2 million units.
Geographically, Asia/Pacific (excluding Japan) saw the highest year-over-year factory revenue growth in the quarter (14.9%), followed by Canada which grew at 11.9%. Central and Eastern Europe posted the largest decline in 4Q13, with revenue falling -4.9% compared to the prior year. The United States finished the year with growth of 7.7% in the quarter.
Cisco continues to lead the overall security appliance market with an 18.1% share in factory revenue for the fourth quarter on year-over-year growth of 23.6%. This was due in large part to its Sourcefire acquisition, which closed in early October.
Check Point held the number 2 spot with a 12.7% share for the quarter as revenue increased 5.6% compared to the fourth quarter of 2012. Fortinet remained the third largest security appliance vendor, with a 6.6% share in the quarter.
Juniper continued to build sequential momentum, but declined 6.4% compared to the prior year. Palo Alto Networks again held the fifth spot among security appliance vendors with a share of 5.4% on 47.7% growth compared to the prior year.
At the functional market level, the Unified Threat Management (UTM) segment saw the largest year-over-year revenue increase at 25.7% and accounted for 41.2% of security appliance revenue in 4Q13. This marked the first time UTM accounted for more than 40% of the appliance market.
Firewall revenue declined -7.1% year over year, as more gateway appliances gain additional functionality and are counted as UTM. Intrusion Detection and Prevention (IDP) again grew over the previous year, increasing 3.8% compared to 4Q12. Finally, the content security segment declined -2.9% year over year and accounted for 16.6% of the market.
Top 5 Vendors, Worldwide Security Appliance Revenue, Fourth Quarter of 2013 (revenues in $ millions)
| Vendor | 4Q13 Revenue | 4Q13 Market Share | 4Q12 Revenue | 4Q12 Market Share | 4Q13/4Q12 Growth |
| Cisco | $434 | 18.1% | $351 | 14.4% | 23.6% |
| Check Point | $303 | 12.7% | $287 | 11.8% | 5.6% |
| Fortinet | $158 | 6.6% | $136 | 5.6% | 16.2% |
| Juniper | $147 | 6.1% | $157 | 6.4% | -6.4% |
| Palo Alto Networks | $130 | 5.4% | $88 | 3.6% | 47.7% |
| Others | $1,221 | 51% | $1,422 | 58.2% | -14.1% |
| Total | $2,393 | 100% | $2,241 | 100% | 6.8%
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