Study: VPN, firewall sales expected to boom

Study: VPN, firewall sales expected to boom

Worldwide revenue from sales of VPN (virtual private network) and firewall hardware and software will grow by 31 per cent from US$668 million in the third quarter of 2002 to US$874 million in the third quarter of next year, according to research released by Infonetics Research.

Worldwide annual revenue in this market will reach US$4.9 billion in 2005, Infonetics said.

A key market driver is the ready availability of low-cost Internet bandwidth, which enables users to move to a model of distributed Internet connectivity rather than centralised connectivity. This drives up demand for VPN and firewall sales, Infonetics said.

North America accounted for 47 per cent of VPN and firewall hardware and software revenue in the third quarter of 2002, followed by Europe, the Middle East and Africa with 31 per cent and Asia-Pacific at 17 per cent.

VPN and firewall appliance hardware and software account for 60 per cent of the market, but sales of routers with integrated security features are growing strongly and now account for 24 per cent of the market. In its infancy, but poised for spectacular growth, is the range of devices known as application-layer VPN gateways, Infonetics said.

Cisco is the dominant vendor in this market with an overall 39 per cent share of revenue, followed by Check Point, which has a 12.7 per cent share on its own behalf and a further 7.5 per cent share through hardware deals with Nokia, according to Infonetics.

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