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Infonetics Research: VPN/Firewall Market Projected to Grow to $4.2B in 2006

Posted on: Wednesday, 3 September 2003, 06:00 CDT

SAN JOSE, Calif., Sept. 3 /PRNewswire/ -- Worldwide VPN and firewall hardware and software revenue grew 1% to $705 million in 2Q03, and will reach $831 million by 2Q04, according to Infonetics Research's quarterly worldwide market share and forecast service, VPN and Firewall Products. By 2006, annual revenue is projected to hit $4.2 billion, a CAGR of 16%.

"The market was sluggish this quarter, particularly in the middle price bands for appliances; with all the changes going on with security products and architectures, end-users are hesitant to make purchase decisions quickly," said Jeff Wilson, principal analyst at Infonetics Research. "Most vendors report that demand is still good, but that sales cycles are lengthening."

2Q03 Market Highlights

-- Cisco is the revenue market share leader for total VPN/firewall hardware and software with 39.9%, followed by Check Point

-- NetScreen, Nokia, Nortel, SonicWALL, Symantec, and WatchGuard are strong second-tier players for revenue market share, with significant market share across a number of categories

-- NetScreen continues to grow faster than the market and most of their competitors, gaining .6% in overall revenue market share between the first and second quarter

-- Worldwide application-layer VPN gateway revenue fell slightly to $18.3 million in 2Q03, but will grow 140% to $43.9 million by 2Q04, and $607 million by CY06, a CAGR of 105%; the dip in revenue this quarter is a temporary issue, not indicative of a slowdown overall; several vendors are closing up shop, but the leading vendors are still reporting strong demand and growth

The VPN and Firewall Products report tracks VPN and firewall appliances in six price-banded categories, hardware and software secure routers, application-layer VPN gateways, and VPN and firewall software (standalone and appliance). Forecasts are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia/Pacific, and CALA).

Companies tracked in this service include Avaya, Aventail, Celestix Networks, Check Point, cipherOptics, Cisco, Computer Associates, Crossbeam, CyberGuard, D-Link, Enterasys, eSoft, Global Technology, Intel, Intrusion, Linksys, Lucent, Neoteris, NETASQ, NETGEAR, Netilla, NetScreen, Nokia, Nortel, SafeWeb, Secure Computing, ServGate, Siemens, SonicWALL, Stonesoft, Symantec, WatchGuard, Whale, ZyXEL, and others.

For sales and to view the table of contents of this report, please contact Larry Howard, vice president, at larry@infonetics.com or 408-298-7999, ext. 225.

Infonetics Research (http://www.infonetics.com/) is an international market research and consulting firm covering the data networking and telecommunications industries in North America, Europe, and Asia. Infonetics helps companies develop, market, and sell smarter by providing objective analysis of end-users, service providers, and product manufacturers through in-depth research studies, quarterly market share and forecast services, and consulting and custom research services.

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