New analysis from Frost & Sullivan (www.networksecurity.frost.com), Asia Pacific Network Security Market, reveals that revenues in this market totaled US0.3 million in 2004 and is forecasted to reach US.22 billion in 2011.

"While the adoption and penetration of advance security solutions is slow in developing countries due to inadequate infrastructure, acceptance in developed countries is hampered due to market saturation," observes Frost & Sullivan industry analyst Jay Tan.

This is set to change with major countries in the region poised for healthy economic growth, which in turn is likely to trigger the purchase of security solutions.

Rising infrastructure enhancements in developing countries such as China, India and Thailand, increasing Internet penetration, and growing awareness are providing further impetus towards the adoption of network security solutions.  Nations such as Indonesia, Malaysia, the Philippines and Thailand are likely to witness higher growth rates.

"The main hurdle in implementing large security systems within enterprises is the difficulty in establishing tangible returns on investment (ROI) for these solutions," explains Tan.  "Such expenditures are justified by emphasizing on the security threats addressed, rather than desired monetary returns."

A further concern is the absence of proper legal framework pertaining to security compliance, especially in developing countries.  To correct this, local governments in Asia Pacific are beginning to regulate the information technology environment by providing a legal structure.

With emerging technologies gaining ground across Asia Pacific and a corresponding increase in the convergence of various security technologies, end users are benefiting from the comprehensive protection of networks and data provided by network security solutions vendors.

Simultaneously, as the market gets highly competitive, consolidation and partnerships amongst vendors, channel partners and system integrators are becoming increasingly prevalent.  Companies with greater financial strength are opting for mergers and acquisitions to further boost their portfolio of offerings, thus also creating more advanced solutions.

As the market approaches saturation in the large enterprises and multinational sector, network security solution providers are targeting the flourishing mass of small and medium enterprises (SMEs).  Multi-layer security is rapidly finding acceptance as a strategy to safeguard enterprise networks and applications.  Whilst in relatively mature markets, companies are now investing in protecting areas which were, until recently, ignored.

The Asia Pacific Network Security Market study provides an overview and outlook of the market segmented by firewall, virtual private network (VPN), and intrusion detection and prevention systems (IDS/IDP/IPS).  It enables vendors of these solutions to design strategies and position their offerings to benefit from the changing market conditions and obtain maximum ROI. 

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

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