The global cybersecurity market grew 15.9 per cent year on year to $17.8 billion in the third quarter this year, despite deteriorating economic conditions, according to a market research firm Canalys.
Palo Alto Networks was the number one vendor in the quarter, growing 24.9 per cent and increasing its market share to 8.4 per cent, up from 7.8 per cent in Q3 2021. Cisco was the second-largest cybersecurity vendor, with growth of 16.7 per cent and a flat market share of 6.9 per cent. Fortinet placed third, achieving growth of 29.9 per cent to reach a 6.7 per cent market share, up from 6 per cent a year ago.
Endpoint security was the fastest-growing category, up 18.7 per cent year on year at $2.7 billion, whereas network security was the largest category, representing $5.1 billion and growing 14.8 per cent.
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“Many cybersecurity 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.
“Many cybersecurity 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 cybersecurity vendors over the next 12 months,” Ball added.
Channel sales accounted for 90.6 per cent of the overall market, with the other 9.4 per cent of sales done directly with customers, said the report. Around $9.6 billion of sales came from North America, representing 53.8 per cent of global spending. EMEA sales reached $5.2 billion, APAC $2.4 billion and Latin America $0.6 billion, the report said.
The technology sector faces deteriorating economic conditions, increasing uncertainty and greater scrutiny of IT spending, factors that most vendors considered in their forecasts. Falls in new business, reductions in spending commitments and delays to subscription start dates were worse than expected, which will filter into future results.