Firewall/VPN security appliance market up 27% in 2003

While 2003 was a year of slow recovery for most technology sectors, Firewall/VPN security appliance shipments grew at 27%, reports In-Stat/MDR. The high-tech market research firm finds that the enterprise customer segment is fueling this growth, as corporations move from product trials to mass deployment. With a substantial concentration of large enterprises with over 1000 employees, North America currently represents approximately 49% of the market. However, Asia will dominate this market over the next few years.

Over the 2004-2008 forecast period, the Low-End and SMB product segments will exhibit the highest growth. Secure Socket Layer (SSL) VPN shipments grew at a substantial 160% during 2003 as corporations sought to offer secure remote access to their ever more-mobile work force. Price compression began to impact High-End and Super High-End products in early 2004. This will affect all product segments over the forecast period. Cisco and Nokia dominated the High-End Firewall/VPN appliance market in 2003.