However, the company's analysis shows growth in New Zealand network security spending, despite a sharp fall, is still tracking ahead of the overall average.
This year will see an overall growth rate of 6.5% in the region as a consequence of the global financial crisis. The New Zealand market was worth an estimated NZ$44 million in 2008, growing 23.7% from the year before with projected growth of 9.2% in 2009. A CAGR of 4.7% is expected from 2009 to 2015, to gross revenues of $61 million by end-2015.
However despite the weaker spending, business commitment to network security remains strong, said Frost & Sullivan Industry Manager Arun Chandrasekaran.
“Most companies recognise that the risks of not implementing adequate IT security far outweigh the cost of investing in it,” he says.
“Amidst pressure to control CAPEX (capital expenditure) and stretch every dollar, companies are more likely to deploy the more affordable converged security solutions,” Chandrasekaran adds. “Adoption of managed security services is also expected to rise as companies try to minimise outright purchases.”
New analysis from Frost & Sullivan on the Asia-Pacific Network Security Market, finds that the market — covering 14 Asia-Pacific countries — was worth an estimated US$1.81 billion in 2008, growing 17.9% from the year before. A modest CAGR (compound annual growth rate) of 7.5% is expected from 2009 to 2015, to gross revenues of just over US$3 billion by end-2015.
The Australian market was worth an estimated US$187.4 million in 2008, growing 4% from the year before with projected growth of 5.3% in 2009. A CAGR of 4.3% is expected from 2009 to 2015, to gross revenues of US$252.2 million by end-2015.