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Pressing Need for Network Protection Fuels Growth in the Latin American Network Security Markets - A major factor motivating growth in the Latin America network security markets is the dramatically growing workforce in the region
Pressing Need for Network Protection Fuels Growth in the Latin American Network Security Markets

 

PRZOOM - /newswire/ - Buenos Aires, Argentina, 2009/07/14 - A major factor motivating growth in the Latin America network security markets is the dramatically growing workforce in the region.

   
 
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The adoption of the home-office model, juxtaposed with the increase in the usage of laptops, PDAs, and smart phones has enhanced the need for securing the expanded network of companies in the region. Moreover, as the IT infrastructure becomes exceedingly complex, potential network security risks are amplified.

More robust and complete solutions are required to ensure the safety of the networks in Latin America, and enterprises are deploying security solutions to safeguard confidential information from unauthorized access. For now, the network security market in the region is presenting a constant growth year after year given its developing nature.

New analysis from Frost & Sullivan (networksecurity.frost.com), Latin America Network Security Markets, finds that the market earned revenues of over $234.6 million in 2008 and estimates this to reach $568.6 million in 2014.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Catalina Rossini, Corporate Communications, at catalina.rossini[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

"Though the world economic crisis is forecast to negatively influence the network security market in Latin America, the market is still expected to achieve relatively high growth rates compared to more mature regions such as Western Europe and the United States, which will be hit harder," say Frost & Sullivan Research Analysts Fernando Belfort and Jennyfer Velez. "By 2009, Brazil and the Andean region are forecast to demonstrate the most optimistic annual growth rates, with 21.1 percent and 25.6 percent, respectively; Mexico, the Southern Cone region, and CCA are forecast to have relatively maller annual growth rate for 2009, with 19.2 percent, 17.5 percent, and 17.0 percent, respectively."

Vendors have identified this emerging opportunity and are focused on improving sales partnerships and establishing local offices in order to garner maximum advantage from the situation. Bundled solutions that integrate multiple solutions into a single product are highly favored in the region.

"Most vendors in Latin America, following a world-wide trend, are developing unified threat management (UTM) devices as a means to increase the market participation of small and medium companies that are currently interested in network security solutions, but are restricted to the market due to prices and investment capabilities," says Belfort. "Vendors such as SonicWALL and to a lower extent Fortinet that are specialized in cost-effectiveness have been gaining market share over the past two years in the region."

Another significant factor positively impacting market dynamics is the proliferation of partnerships between network security vendors and managed security service providers. The outsourcing trend has been highly successful over the last three years in Latin America and as more companies outsource their network security to specialized third parties, the demand for robust and updated products will escalate.

"During 2008, the network security market was largely dependant on its enterprise customers," observes Velez. "However, the participation of the SMB segment, particularly the mid market sector, is expected to accelerate in the near future."

Between 2008 and 2014, the SMB segment is poised to boost its participation, increasing its share from 28.2 percent to 34.4 percent by the end of the forecast period. Demand from this segment will uplift prospects for firewall/VPN IPSec and intrusion detection and prevention systems (IDS/IPS), which are likely to face market maturity in enterprises that have already invested in these capabilities presently.

The large enterprise segment represents 71.8 percent of the market. Nonetheless, this total participation of the segment is expected to start declining with a more active mid market participation. Providers are also likely to develop special offers with a different pricing structure to reach the mid market.

Latin America Network Security Markets is part of the Network Security Growth Partnership Service program, which also includes research in the following markets: Latin America Managed Security Services Markets and Latin America Network Security Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

Latin America Network Security Markets / N583

 
 
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Pressing Need for Network Protection Fuels Growth in the Latin American Network Security Markets

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