The IT security hardware market revenues of China are expected to reach $1.4bn in 2016, according to a new report from International Data Corporation (IDC).
According to the report, China’s IT security hardware revenues grew by 19.6% year-over-year to $727 m in 2011 and is expected to grow 15.1% year-over-year in 2012 to $837m.
The report, China IT Security Appliance 2012-2016 (2011H2), claims that the Firewall/VPN hardware market accounted for 36.7% of the overall revenues in the second half of 2011, making it the biggest sub-market in China’s IT security hardware market.
The increase in Firewall/VPN hardware market was due to the sales of high performance firewall products driven by the construction of data centers nationwide.
IDC predicts that the compound growth rate of the Firewall/VPN hardware market will be 5.9% in the next five years.
According to the report, the unified threat management hardware market, Secure Content Management hardware market, and VPN hardware market all performed well and their growth rates were greater.
The Intrusion Detection System (IDS) hardware market recovered in 2011 following the market shrinkage in 2009 and 2010.
The recovery in the IDS hardware market was mainly due to some large customers’ efforts to renew and replace equipment and security visualization products launched by some IDS manufacturers.
IDC predicts that the IDS hardware market will maintain slow growth in the future, and the compound growth rate in the next five years will be 2.4%.
The report finds that the performance of Intrusion Prevention System hardware market was in line with market expectations in 2011.
Increasing network attacks triggered customer demands for specialised IPS products in sectors that include government, finance, and telecoms.
IDC predicts that the compound growth rate in the next five years will be 15%.
The report revealed that the UTM hardware market continued to command attention from users, especially from small and medium-sized enterprises.
The UTM hardware market has seen more vendors for the past two years entering for competition and network equipment makers stepping up their investment efforts to development products of this kind.
IDC predicts that the compound growth rate in the next five years will reach 19.1%.
VPN hardware market will maintain a high rate of growth in the coming years, driven mainly by telecommuting and cross-region secure connections.
The adoption of intelligent terminal equipment and the rapid development of mobile applications will also accelerate the development of VPN hardware market.
IDC predicts that the compound growth rate in the next five years will reach 18.2%.
Recently IDC had in its report revealed that China PC market’s growth is showing sings of improvement in July 2012, when compared to June of this year, registering sequential monthly improvement for two consecutive months.
Gartner in its report, ‘2012 Hype Cycle for ICT in China’, had predicted that the information technology (IT) spending in China is expected to rise about 12.6% in 2012 to $312bn from $277bn spent in 2011.
