European security product sales driven by GDPR and high profile hacks

European enterprise security products sales were 8.8% higher in 2018 compared to the previous year.

The latest data from CONTEXT shows that this this growth was seen in revenues from hardware and software and encompassed products designed for large enterprise customers, products aimed at small and medium businesses (SMBs), and others that may be used by either segment.

There was growth across all three main areas: data protection and recovery, end-point security, and enterprise network security.

The greatest increase, of 51.3% year-on-year, was in revenues from data protection and recovery products although this did come from a smaller base.

The biggest impact was in end-point security, which saw year-on-year growth of 12.6% with increased revenues from sales of many products including, for example, security suites.

These generate the largest share of end-point security revenue and, in 2018, standalone and cloud offerings from companies such as Trend Micro, McAfee, Symantec and Check Point saw growth across Western Europe. Other growing product segments in this category included authentication, internet security and control management.

Enterprise network security revenues increased by 2.1% with growing sales of F5 Networks’ BIG-IP, Check Point’s 15600 Next Generation Threat Prevention, Blue Coat’s ProxySG S500 and Cisco’s FirePOWER amongst other security appliances.

Revenue from software for both standalone and cloud offerings in this area is becoming increasingly important but revenues from products such as firewall and gateway appliances have declined over the last year.

“The biggest driver for growth in security products will continue to be the General Data Protection Regulation (GDPR), which came into effect across the EU on 25 May 2018”, said Mathias Knoefel, senior enterprise analyst at CONTEXT.

“This, along with high-profile security breaches and hacks affecting large industries, has certainly raised awareness of the threats faced today by all sorts of companies, with some growth peaks during 2018 clearly following media reports of high-profile security leaks or attacks.”

One of the latest high profile security stories is Google’s £44m GDPR fine. 

French data regulator CNIL fined the tech giant for its "lack of transparency, inadequate information and lack of valid consent regarding ads personalisation".

Google says it is "studying the decision" to determine its next steps.

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