by Brianna Crandall — April 22, 2016 — Technavio has released a new market research report on the global security appliance market that demonstrates the current trend that end-users are opting for integrated and converged physical and network security solutions.
According to the report, the global security appliance market is expected to grow at a compound annual growth rate (CAGR) of 11% between 2016 and 2020. Network security appliances include hardware products that monitor, detect, and prevent unauthorized access and misuse of data transmitting through a network to prevent a computer network from cyberattacks.
Due to a growth in cyberattacks among sectors such as BFSI, healthcare, and government, the adoption rate of security appliances is expected to grow during the forecast period. The security appliance market in the Asia-Pacific (APAC) region is expected to be the fastest-growing market over the next four years, owing to the growing adoption of mobile devices such as laptops, smartphones, and tablets in countries such as India, China, and Japan.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
Integrated security solutions
According to Amrita Choudhury, lead analyst, ICT, Technavio Research:
Of late, the end-users are opting for integrated and converged physical and network security solutions. Integrated security solutions are expected to provide better support and functionality to customers. Moreover, with the increasing complexity of network infrastructures, integration of different security solutions is an important buying criterion, which is expected to affect the market revenue. Integrated security solutions are expected to reduce the overall cost of owning security appliances for the customers, thereby, increasing their adoption during the forecast period.
Biometric technologies
A number of security appliances such as access control systems are being integrated with biometric technologies for individual authentication and identification. Usage of biometric technologies provides better security to online transactions, ATMs, and critical infrastructures by linking individual credentials to a user’s face, iris, fingerprints or voice.
IP-based video surveillance solutions
In addition, various private and public financial institutions have begun using high-definition (HD) cameras, as they have high-quality imaging and up to 180 days of video storage. IP cameras are more affordable than analog cameras, and they offer the advantages of scalability and flexibility.
Key players
The key players in the global security appliance market are Bosch Security Systems, Honeywell Security, Tyco, Check Point Software Technologies, Fortinet and Juniper Networks. The market is fragmented with the presence of many multinational vendors and small regional players.
Competition in this market is expected to intensify during the forecast period with an increase in solution extensions, technological innovations, and mergers and acquisitions (M&As). To remain competitive, vendors have to develop new technologies and remain abreast with the emerging technologies that can affect their product lines.
A more detailed analysis is available in the Technavio report, Global Security Appliance Market 2016-2020, available for purchase from Technavio. Reports are customizable by other regions and specific segments upon request.
