Palo Alto Networks ruled as the top global cyber security vendor during the third quarter of 2023, with channel sales making up the vast majority of the market.
According to research firm Canalys, Palo Alto grew 24.9 per cent and increased its market share to 8.4 per cent.
Coming in second was Cisco with 16.7 per cent growth and market share holding steady at 6.9 per cent. Fortinet was in third place with growth of 29.9 per cent and market share increasing to 6.7 per cent.
In terms of growth, CrowdStrike ranked supreme with 52.9 per cent, closely followed by Zscaler with 52.1 per cent and Microsoft with 38.6 per cent. This comes as the whole global cyber security market was up 15.9 per cent year-on-year for the period, to US$17.8 billion.
Bolstering this figure were channel sales, which made up 90.6 per cent of the overall market, while direct sales made up the remaining 9.4 per cent. Furthermore, channel sales grew by 15.9 per cent year-on-year, outpacing direct sales.
While economic conditions globally are faltering, the impact on the cyber security market is yet to be seen in full, according to the firm, but reductions in spending commitments and delays to subscription start dates were worse than expected and are likely to affect future results.
“Many cyber security vendors have shifted toward subscription-led business models, which also helped to shield them from the immediate impact of the economic slowdown,” said Matthew Ball, chief analyst at Canalys. “The move to subscription-based platforms and increased focus on upselling existing accounts will sustain revenue growth for cyber security vendors over the next 12 months.”
Looking ahead, channel partners are optimistic about their prospects in the new year, with 27 per cent expect cyber security revenue to increase by more than 20 per cent in 2023, according to a Canalys poll.
Further, another 27 per cent expect growth of 11 per cent to 20 per cent, while 10 per cent forecast a decline in the technology area.
Canalys' research comes months after fellow data and analytics firm Global Data forecast in September that the global cyber security market will reach US$334 billion in revenue by 2026, with the Asia Pacific (APAC) region predicted to lead the way for growth.