2011 Latin American Network Security Markets. N July 2011

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1 2011 Latin American Network Security Markets July 2011

2 Table of Contents Methodology and Market Definitions Methodology.. Market Definitions Market Overview Market Overview... Market Engineering Measurements. Market Drivers Market Restraints Market Forecasts Revenue Forecasts.. Demand Analysis... Sub-regional Market Analysis.. Vertical Market Analysis. Competitive Analysis Market Share Analysis About Frost & Sullivan 45 4

3 List of Figures Network Security Market: Market Drivers Ranked in Order of Impact (Latin America), Network Security Market: Market Restraints Ranked in Order of Impact (Latin America), Network Security Market: Revenue Forecasts (Latin America), Network Security Market: Revenue Forecasts by Service Type (Latin America), Network Security Market: Percent of Revenues by Client Type (Latin America), Network Security Market: Revenue Forecasts by Geographic Region (Latin America), Network Security Market: Percent of Revenues by Vertical (Latin America),

4 List of Charts Network Security Market: Market Engineering Measurements (Latin America), Network Security Market: Revenue Forecasts (Latin America), Network Security Market: Percent of Revenues by Service Type (Latin America), Network Security Market: Percent of Revenues by Service Type (Latin America), Network Security Market: Percent of Revenues by Geographic Region (Latin America), Network Security Market: Percent of Revenues by Geographic Region (Latin America), Network Security Market: Percent of Revenues by Vertical (Latin America), Network Security Market: Percent of Revenues by Vertical (Latin America), Network Security Market: Company Market Share by Revenues (Latin America),

5 List of Charts (continued) Network Security Market: Company Market Share by Revenues in the Firewall/IPsec VPN Segment (Latin America), Network Security Market: Company Market Share by Revenues in the SSL VPN Segment (Latin America), Network Security Market: Company Market Share by Revenues in the IDS/IPS Segment (Latin America),

6 Market Overview This research service covers the Latin American network security markets in the following regions: Andean Region Brazil Caribbean and Central America (CCA) Mexico Southern Cone Brazil, Mexico, and Chile in the Southern Cone are the more developed markets, while the remaining regions have not yet reached the similar levels of development. The importance of network security has become vital and is no longer an optional investment for companies. Large enterprises have annual budgets to be invested in the security of their networks and the small and medium business (SMB) segment have increased their awareness and consequently investments in these markets as well. The total Latin American network security markets generated revenues of $xxx.x million in 2010, with an annual growth rate of xx.x percent compared to The compound annual growth rate (CAGR) from 2010 to 2016 is expected to be of xx.x percent. The high growth rate of the markets in these regions can be attributed to their positive gross domestic product (GDP) growth rates; in the case of the Andean region and CCA, it can also be attributed to its relatively low levels of adoption of network security in the past. Regarding the network security solutions studied, firewall/internet protocol security (IPsec) virtual private network (VPN) accounted for the highest share of market revenues in However, its share is expected to decrease during the forecast period due to its commoditization. Driven by a rapid increase in workforce mobility and the number of virtual attacks, VPN secure sockets layer (SSL) is expected to witness a significant increase in its revenue share from 2010 to From the analysis of the market s competitive structure in the five regions covered in this study, both Cisco Systems and Check Point are identified as the dominant market participants, with a combined market share of xx.x percent in However, the increasing growth of niche market participants such as SonicWALL and Sourcefire is also noteworthy. 17

7 Market Engineering Measurements Network Security Market: Market Engineering Measurements (Latin America), 2010 Measurement Name Measurement Trend Market age Growth stage Increasing Revenues Potential revenues (maximum future market size) Base year market growth rate Compound annual growth rate Price sensitivity Customer satisfaction Degree of competition Degree of technical change Market concentration (percent of base year market controlled by the top three competitors) $xxx.x million $xxx.x million xx.x% xx.x% xxxxx x x xxxxx xx.x% Note: All figures are rounded; the base year is Source: Frost & Sullivan 18

8 Market Drivers Network Security Market: Market Drivers Ranked in Order of Impact (Latin America), Rank Driver 1-2 Years 3-4 Years 5-6 Years 1 Increasingly complex and diversified attacks, escalating number of cyber crimes, and negative publicity caused by security breaches Medium 2 Pressure to adopt security measures from regulatory agencies and treaties High 3 Growing adoption of Cloud Computing architecture leverages high network security investments Medium 4 New bundled solutions offered by providers less expensive and more efficient, allowing more companies to acquire more complex security products Medium 5 Growth of the managed security services market directly fueling network security growth Medium 19

9 Revenue Forecasts Network Security Market: Revenue Forecasts (Latin America), Network Security Market: Revenue Forecasts (Latin America), Year Revenues ($ Million) Revenue Growth Rate (%) Revenues ($ Million) Revenue Growth Rate (%) 2009 xxx.x xxx.x xx.x 2011 xxx.x xx.x 2012 xxx.x xx.x 2013 xxx.x xx.x 2014 xxx.x xx.x 2015 xxx.x xx.x 2016 xxx.x x.x CAGR ( ): xx.x% Note: All figures are rounded; the base year is Source: Frost & Sullivan Note: All figures are rounded; the base year is Source: Frost & Sullivan 23

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