Inonetics: The content security gateway market is primed to take off as established and upstart vendors of all types invest capital and development resources into new solutions,.

Worldwide content security gateway sales grew 8% between the first and second quarter of 2006, reaching $270 million, and are forecast to grow 43% by the second quarter of 2007. Annual worldwide sales are expected to hit $2.3 billion in 2009. Appliances are growing at a much faster rate than software, with the appliance market forecast to surge at a 44% compound annual growth rate from 2005 to 2009.

The 2nd quarter was strong for many content security vendors, with customer wins reported across a wide variety of customer segments, and accelerating end-user interest. worldwide content security gateway software sales were almost double the sales for appliances in 2005, but by 2007, appliance sales will actually surpass software sales. Content security appliance revenue more than triples from 2006 to 2009, fueled by innovative security features, strong performance, and reasonable prices for companies of all size.

• Content security appliance sales grew 17% from 1Q06 to 2Q06

• Content security software sales inched up 2% sequentially

• North America accounted for 51% of all content security gateway revenue in 2005, Asia Pacific for 27%, EMea for 20%, and CALA for 2%

Content Security Appliances and Software Market Outlook Publ 20060907