SecurityWorldMarket

12/05/2016

Impressive growth for security appliance market

London, UK

Technavio’s market research analysts predict the global security appliance market to grow impressively at a CAGR of more than 11% during the forecast period from 2016-2020, according to their most recently published report on the subject.

This latest market research study presents a detailed segmentation of the global security appliance market by technology (network security and physical security), by end-users (SMEs, government organisations, and large enterprises, and by geography (the Americas, APAC, and EMEA). The key vendors identified in the market are Bosch Security Systems, Honeywell Security, Tyco, Check Point Software Technologies, Fortinet, and Juniper Networks.

Rise in criminal activity

The increasing risk of domestic and international security threats is a primary driver of the growth of this market. Since 2010, there’s been a significant rise in criminal activities and data theft worldwide. The loss of data from organisations can be detrimental as they contain confidential information. Therefore, surveillance devices are used to track the individuals involved in such criminal activities. This market is expected to witness an augmented adoption of monitoring and surveillance devices to prevent the unauthorized access to information and property,

Technavio anticipates the increasing adoption of IP-based video surveillance solutions to aid market growth in the coming years. IP surveillance systems include video recorders, cameras, and storage devices. Moreover, private and public financial institutions have started using HD cameras, as they have high-quality imaging and provide up to 180 days’ worth of video storage. With various institutions adopting IP cameras for surveillance, this market’s growth has a positive outlook until the end of 2020.

Large enterprises dominate

The report segments the market into user types by SMEs, government organisations and large enterprises, and it the large enterprises sector that analysts found accounted for more than 43% of the market share during 2015 and expect it to retain its market leadership until the end of 2020. An important factor contributing to the growth of this market segment is the rising concern for physical and network security in organisations around the world. Technological advancements and recent changes in corporate culture have led to employees using their devices such as Iphones, Android phones, and tablets for professional work. This has raised the need to secure corporate data and valuable business information from getting leaked and misused. Moreover, the increasing use of mobile banking among end-users has also increased the need for network security appliances. Additionally, the rising number of criminal activities in organisations will lead to an augmented demand for physical security devices in the forecast period.

Geographical segmentation

During 2015, the Americas dominated the market, accounting for more than 42% of the market share. As the dependency on the Internet and wireless technologies is very high in this region, the governments of countries like Brazil, Peru, Chile, and Columbia are making substantial investments on network security appliances to prevent data theft in organisations. Moreover, with the adoption of BYOD (bring your device) policy in organisations, the need for network security appliances has increased. The US is the largest market in North America, but many organisations in South America are also adopting physical security appliances. Such developments will drive the market in this region during the forecast period.

Competitive landscape

The global security appliance market is highly fragmented owing to the presence of many multinational and regional vendors. Large vendors often acquire small vendors to increase their product portfolio and increase their market presence. The competition in the market will increase due to solution extensions, technological innovations, and mergers and acquisitions.


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