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The South African security appliances market grew 15.1% year on year in 2012 to reach $50.04 million. IDC predicts the market will continue to grow by 10.2% on average annually to reach $81.16 million in 2017. More than 22 technology vendors that operate on the South African market provide network security appliances.

security

 

The four strongest players include Cisco, Fortinet, Check Point and Juniper; together, these vendors claimed 58.0% market share in 2012. At present, large-scale South African enterprises are inclined to adopt best-of-breed security appliances   such as IPS and content management, whereas small and medium-sized enterprises (SMEs) prefer to deploy unified solutions such as unified threat management (UTM) appliances that represented 37.1% of market revenue in 2012.

 

“Consistent with the industry trend towards converged network infrastructure and simplified IT architecture, unified network security appliances are expected to be mainstream models during the next five years," says Jiaqi Sun, research analyst at IDC South Africa. "This is due to improving performance of security features and their management functions embedded in the unified solutions. Hence, with the trend of unification, the uptake of standalone VPN and IDS devices is expected to stay at a minimum level and occur primarily in the case of renewals.”

 

In 2012, the South African security appliances market generated revenue of $50.04 million. A key component of the market's positive performance was frequent cyber attacks resulting in business interruptions, as well as regulations such as the Payment Card Industry (PCI) Data Security Standards, the newly drafted Protection of Personal Information (POPI) Act, and various industry-specific regulations across the financial services, retail, telecom, healthcare and public sector verticals in the country. South African security appliances market revenue is expected to reach $81.16 million in 2016, representing an compound annual growth rate (CAGR) of 10.2%.

 

"Increasing market competition will lead to market consolidations among the 22-plus vendors in the next five years, hence vendors will be challenged to improve their profitability while maintaining market shares," says Sun. “In the next five years, technology differentiation in areas such as security solutions related to the cloud security, bring-your-own-device (BYOD) phenomenon, and bandwidth efficiency will be one of the primary growth strategies for vendors in the South African market to retain customers and attract new ones.”


---IDC

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