Asia Pacific (including Japan) Web Application Firewall Market CY2010
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1 Asia Pacific (including Japan) Web Application Firewall Market CY2010 April 2011 <GPS> 1
2 Table of Contents Market Definition for Asia Pacific Web Application Firewall Market 10 Executive Summary Asia Pacific (including Japan) Web Application Firewall Market CY ANZ Web Application Firewall Market CY ASEAN Web Application Firewall Market CY Greater China Web Application Firewall Market CY Indian Web Application Firewall Market CY Japanese Web Application Firewall Market CY South Korean Web Application Firewall Market CY About Frost & Sullivan 92 4
3 List of Figures Web Application Firewall Market: Market Drivers Ranked in Order of Impact (Asia Pacific), Web Application Firewall Market: Market Restraints Ranked in Order of Impact (Asia Pacific), Web Application Firewall Market: Market Drivers Ranked in Order of Impact (ANZ), Web Application Firewall Market: Market Restraints Ranked in Order of Impact (ANZ), Web Application Firewall Market: Market Drivers Ranked in Order of Impact (ASEAN), Web Application Firewall Market: Market Restraints Ranked in Order of Impact (ASEAN), Web Application Firewall Market: Market Drivers Ranked in Order of Impact (Greater China), Web Application Firewall Market: Market Restraints Ranked in Order of Impact (Greater China), Web Application Firewall Market: Market Drivers Ranked in Order of Impact (India), Web Application Firewall Market: Market Restraints Ranked in Order of Impact (India), Web Application Firewall Market: Market Drivers Ranked in Order of Impact (Japan), Web Application Firewall Market: Market Restraints Ranked in Order of Impact (Japan), Web Application Firewall Market: Market Drivers Ranked in Order of Impact (South Korea), Web Application Firewall Market: Market Restraints Ranked in Order of Impact (South Korea),
4 List of Charts Web Application Firewall Market: Market Engineering Measurements (Asia Pacific), 2010 Web Application Firewall Market: Revenue Forecasts (Asia Pacific), Web Application Firewall Market: Revenues and Percent of Revenues by Geographic Region (Asia Pacific), 2010 Web Application Firewall Market: Growth Analysis by Geographic Region (Asia Pacific), 2010 Web Application Firewall Market: Revenue Opportunities (Asia Pacific), Web Application Firewall Market: Revenues and Percent of Revenues by Vertical (Asia Pacific), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Horizontal (Asia Pacific), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Technology (Asia Pacific), 2010 Web Application Firewall Market: Market Share Analysis (Asia Pacific), 2010 Web Application Firewall Market: Market Engineering Measurements (ANZ), 2010 Web Application Firewall Market: Revenue Forecasts (ANZ), Web Application Firewall Market: Revenues and Percent of Revenues by Geographic Region (ANZ), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Vertical (ANZ), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Horizontal (ANZ), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Technology (ANZ), 2010 Web Application Firewall Market: Market Share Analysis (ANZ),
5 List of Charts (Contd ) Web Application Firewall Market: Market Engineering Measurements (ASEAN), 2010 Web Application Firewall Market: Revenue Forecasts (ASEAN), Web Application Firewall Market: Revenues and Percent of Revenues by Geographic Region (ASEAN), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Vertical (ASEAN), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Horizontal (ASEAN), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Technology (ASEAN), 2010 Web Application Firewall Market: Market Share Analysis (ASEAN), 2010 Web Application Firewall Market: Market Engineering Measurements (Greater China), 2010 Web Application Firewall Market: Revenue Forecasts (Greater China), Web Application Firewall Market: Revenues and Percent of Revenues by Geographic Region (Greater China), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Vertical (Greater China), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Horizontal (Greater China), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Technology (Greater China), 2010 Web Application Firewall Market: Market Share Analysis (Greater China),
6 List of Charts (Contd ) Web Application Firewall Market: Market Engineering Measurements (India), 2010 Web Application Firewall Market: Revenue Forecasts (India), Web Application Firewall Market: Revenues and Percent of Revenues by Vertical (India), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Horizontal (India), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Technology (India), 2010 Web Application Firewall Market: Market Share Analysis (India), 2010 Web Application Firewall Market: Market Engineering Measurements (Japan), 2010 Web Application Firewall Market: Revenue Forecasts (Japan), Web Application Firewall Market: Revenues and Percent of Revenues by Vertical (Japan), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Horizontal (Japan), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Technology (Japan), 2010 Web Application Firewall Market: Market Share Analysis (Japan),
7 List of Charts (Contd ) Web Application Firewall Market: Market Engineering Measurements (South Korea), 2010 Web Application Firewall Market: Revenue Forecasts (South Korea), Web Application Firewall Market: Revenues and Percent of Revenues by Vertical (South Korea), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Horizontal (South Korea), 2010 Web Application Firewall Market: Revenues and Percent of Revenues by Technology (South Korea), 2010 Web Application Firewall Market: Market Share Analysis (South Korea),
8 CY 2010 APAC Highlights Trends The Web Application Firewall (WAF) market registered a robust growth of xx.x percent growth on YoY basis in 2010, reaching a total market size of $xx.x million in Asia Pacific. The rapid emergence of Web 2.0 technologies in the enterprise environment, coupled with the fast growing of consumer community of mobile devices was pivotal in steering the growth of Web applications. As enterprises looked to leverage on the potential of the Web sphere and the related Web technologies, awareness levels towards the threats and risks posed by the Web were undoubtedly heightened. As a result, rising security concerns towards Web deployments caused many enterprises to look at the level of protection offered by WAF technologies. Moreover, the efforts of WAF vendors in propagating the unique proposition of having WAF helped to reduce the market confusion between WAF and other security technologies such as IPS, Network-based Firewall and so forth witnessed an improving understanding from enterprises in the region towards the technology. Yet, the confusion still existed, particularly in some markets like Malaysia, Indonesia, Thailand in the region. Market Overview In addition, the improving global economy helped the enterprises in the APAC region in adopting the solution. Moreover, compliance continued to be a key driving factor for many markets in APAC, particularly to the verticals like BFSI, E-commerce and government. The BFSI vertical continued to lead the spending of the Web Application Firewall market in APAC saw more enterprises from the vertical turning to WAF to counter the rising attacks targeting at application layer. In addition, compliance within the financial vertical was getting more stringent following the financial crisis. In 2010, the Japanese and South Korea WAF markets were leading the Asia Pacific WAF market by contributing xx.x percent and xx.x percent of the total market share respectively. It followed by fast growing markets like Greater China and ANZ where all experienced a robust YoY growth of xx.x percent on xx.x percent in The prognosis for the Web application firewall continued to look positive in the APAC region, with a forecasted CAGR of xx.x percent in the next five years. Most of the markets in the region represent immense growth opportunities for the Web application firewall where the growth would be powered by growing adoption of web application, sophistication of cyber attacks, and improving awareness among enterprises towards the technology. 15
9 Moving Forward APAC Technology Trends Trends The Role of WAF With the Web rapidly emerging as a key channel to drive forward business processes, the security arena of the future may witness the rise of WAF as a primary security platform on the Web front, similar to the role that the network-based firewall has been performing for corporate networks all this while. In the short term, the two firewall solutions will serve decidedly different purposes. However, in the long term, with network-based firewalls incorporating more application-centric capabilities, the firewall of the future may a consolidated approach unifying both Web and network perspectives. APAC Technology Roadmap Ahead Technology Convergence Two Types of Possibilities In line with the trend witnessed in Australia, India and some ASEAN markets in 2010, the WAF technology is likely to find itself being offered less as a point product, and more as a feature add-on moving forward. This is particularly relevant given the current market trends dominating the application delivery controller market, whereby three pillars of technological capabilities surrounding application availability, performance and security are expected to drive forth the evolution of the platform. On the other hand, with Web applications becoming key business enablers for enterprises in APAC, there is greater need for enterprises to leverage on a platform like WAF to manage the flow of users accessing the web portal, particularly in light of the extended business eco-system faced by enterprises nowadays. In this way, the WAF platform should provide more granular controls pertaining to user profiling and access rights beyond its traditional role as a static defense against cyber attacks. This could possibly mean greater integration and communication with other existing security technologies and even acceleration technologies to offer defense-in-depth protection against threats as well as enhance the performance aspect of web applications in light of the extended WAF platform. Soft WAF The growing prevalence and relevance of server consolidation is expected to enhance the demand for virtualization-related technologies. As such, with more enterprises turning to virtualized platforms to power their application servers, there is likely to be rising need for the soft versions of WAF to be integrated into these virtual devices. Likewise, with cloud computing expected to stimulate demand for application delivery via the cloud, the ability for soft WAF solutions to sit closer to virtualized application servers will no doubt enhance its appeal to cloud providers and end-users alike. 16
10 Market Engineering Measurement Analysis Web Application Firewall Market: Market Engineering Measurements (Asia Pacific), 2010 Measurement Name Measurement Trend Market age Growth stage Increasing Revenues (2010) Potential revenues (2015) Base Year Growth Rate Compound annual growth rate ( ) Price sensitivity Competitors (active market competitors in base year) $xx.x million $xxx.x million xxxxxx More than xx Note: All figures are rounded; the base year is Source: Frost & Sullivan 17
11 Market Drivers and Restraints Web Application Firewall Market: Market Drivers Ranked in Order of Impact (Asia Pacific), Rank Driver 1-2 Years 3-5 Years 1 More adoption of web-based applications High DRIVERS 2 Sophistication of attacks targeting web applications High 3 Regulatory compliance High 4 Growing mandate on web application security High Source: Frost & Sullivan Web Application Firewall Market: Market Restraints Ranked in Order of Impact (Asia Pacific), Rank Restraint 1-2 Years 3-5 Years 1 Uneven development of web applications adoptions High 2 Limited Awareness towards unique proposition of WAF Technology High 3 Lower budget priority towards the solution High RESTRAINTS 4 Unstable global economy Medium Source: Frost & Sullivan 18
12 Revenue Forecasts Web Application Firewall Market: Revenue Forecasts (Asia Pacific), xxx.x xxx.x $xxx.x Revenue Forecast ($ Million) xxx.x xxx.x xxx.x xxx.x xx.x $xx.x $xx.x $xx.x $xxx.x $xxx.x $xxx.x x.x% Revenue Growth Rate % Note: Compound Annual Growth Rate ( ): 39.2% Note: All figures are rounded; the base year is CY Source: Frost & Sullivan 19
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