Security appliance market in the Asia-Pacific region is expected to grow at compounded annual growth rate (CAGR) of 12% to reach $2.6bn billion by 2016, according to a report by IDC.
Among different segments Unified Threat Management (UTM) will be the main driver, accounting 37% share of the total security appliance market by 2016 as against 29% in 2011.
During the second quarter of this year security appliance market in the Asia/Pacific region excluding Japan (APEJ) grew to $344.5m, rising 10% from the same quarter in 2011 while shipments increased 6.6%.
APEJ was one of the two regions which witnessed double-digit year-over-year growth, mainly driven by Unified Threat Management (UTM), Firewall/VPN, and Intrusion Prevention System (IPS) appliances.
Growth in China, Korea, India and Australia was the main driver which estimated to account 82% of the security appliance market in the region by second quarter of 2012.
IDC Asia/Pacific Software Research senior market analyst Naveen Hegde said that the security appliance market is still evolving, despite its maturity in certain solutions.
"New technologies are being invested in and introduced to the market; the actions of vendors in the space speak to how important the solutions remain," Hegde said.
"The increased attention to sound IT network infrastructure, compliance with regulatory requirements, and easy-to-manage solutions have drawn much focus on the security appliance.
"The growing interest in mobility, cloud, and big data has also increased the complexity of the threats and thus a higher demand on security appliances."
During the second quarter UTM witnessed a growth of 21.4%, followed by Firewall and IPS at 11.3% and 10.6% respectively year-on-year.
Cisco leads in the market with a 13% share in the market while Check Point, Fortinet and Juniper have a respective market share of 8%, 5% and 8% respectively.
IDC Asia/Pacific Software Research analyst Shahnawas Latiff said the market is expected to register healthy growth across various market segments, particularly in the UTM, content management and VPN segments.
"The demand is clearly on a strong positive curve," Latiff said,
"Today's enterprise faces complex, sophisticated security threats, from advanced persistent attacks (ATPs) to zero-day vulnerabilities, and the security products that an organization implements play a major role in the success or failure of the organization's overall security strategy."
Absolute® Software specialises in technology and services for the management and security of mobile computers and smartphones.
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