Network security products continued to enjoy strong sales in the first quarter of this year, with revenues up 5% over the previous quarter, according to a new report from Infonetics research.
The solid revenue growth in an otherwise "fairly quiet" quarter was just a hint of what Infonetics expects for this year. In its "Network Security Appliances and Software: report, the firm predicts that revenues will rise 27% to $1.3 billion by this time next year, and it expects total annual revenues is expected to reach $6.5 billion by 2008.
"The network security market will grow at a 15% compound annual growth rate between 2004 and 2008," Infonetics principal analyst Jeff Wilson said in a statement. "This strong growth is being driven by the many new viruses, malware, and targeted attacks that surface every day, compelling companies of all sizes to invest in security. Many areas in the market will continue single- and double-digit quarterly growth over the next few years."
The most popular security products in the first quarter of 2005 were virtual private network (VPN) and firewall appliances and software, which accounted for 78% of revenues, with intrusion detection and prevention systems making up 14%, and gateway antivirus 8%. Cisco continues to lead the market in worldwide revenue share, with Check Point in second and Juniper in a close third place.