Both factory revenue and unit shipments grew in the second quarter of 2012, according to research firm IDC, with worldwide factory revenue recording an increase of 6.3 percent year-over-year to just under US$ 2.0 billion, and shipments increasing 6.5 percent to 496,697 units.
This growth marked the ninth consecutive quarter of year-over-year growth, IDC said. In Q1 2012, factory revenue growth stood at 9.7 percent and unit growth was 12.9 percent compared to Q1 2011.
"While the macroeconomic environment remains somewhat uncertain, these latest tracker results show that companies continue to prioritize security and will spend the dollars necessary to secure their organizations' infrastructure," said John Grady, senior research analyst, Security Products at IDC.
While the "Worldwide Quarterly Security Appliance Tracker" report noted that at the functional market level, the Firewall/VPN segment again saw the largest year-over-year revenue growth at 21.2 percent--accounting for 28.3 percent of the overall security appliance market in Q2 2012--IDC attributed this growth entirely to shifts in Cisco's revenue.
The UTM market represented 27.8 percent of security appliance revenues as result of 19.0 percent year-over-year growth. The IPS, Content Management, and VPN segments all saw revenue declines compared to the second quarter of 2011.
Geographically, IDC found that Asia/Pacific (excluding Japan) and Canada were the only regions to witness double-digit year-over-year growth in factory revenue, with Latin America (18.6 percent year-over-year increase) and Central & Eastern Europe (18.5 percent) seeing the fastest growth in shipments.
The US witnessed an 8.0 percent increase in revenue on 4.8 percent growth in units due to strong results in the unified threat management (UTM) segment.
"Security professionals with the responsibility of providing applicable cyber intelligence and timely technical information for defending against emerging threats in rapidly growing markets require multiple levels of security to protect everything from small and medium-sized businesses to corporate data centers," said Ebenezer Obeng-Nyarkoh, senior research analyst, Worldwide Trackers Group.
Earlier last month, research firm Gartner had released a report that found that the security infrastructure market would see positive growth through 2016 as organizations prioritize on security budgets despite trying economic times.