This represents a ten per cent compounded annual growth rate (CAGR) over the next five years. By 2026, cloud-friendly network security solutions will generate more than half of the total market revenue, driven by their scalability, flexibility, and compatibility with cloud-first and hybrid work strategies.
Dell’Oro Group Senior Director of Enterprise Security and Networking Mauricio Sanchez said there is a growing demand for cloud-based security solutions.
He said: “We are witnessing an undeniable shift as enterprises embrace virtual and cloud-based solutions to meet the evolving demands of hybrid work and multi-cloud environments. Cloud-first strategies and increasing cyber threats are accelerating investments in scalable, AI-enhanced security solutions such as virtual firewalls, WAF, and SSE solutions.”
The report, which provides a forecast for the network security market from 2024 to 2029, highlights several key trends:
The firewall market as a whole is expected to grow at an eight per cent CAGR, with virtual firewalls seeing particularly strong expansion at a projected 15 per cent CAGR. This reflects their increasing importance in hybrid cloud deployments.
The Web Application Firewall (WAF) market is predicted to grow at a rate of 13 percent CAGR. This growth is driven by digital transformation efforts and the rising need to secure applications hosted in multi-cloud environments.
Revenue from Security Service Edge (SSE) solutions is expected to exceed $11 billion by 2029, growing at a 14 percent CAGR. This surge is attributed to enterprises' widespread adoption of cloud-delivered security services.
While physical Application Delivery Controllers (ADC) have experienced a temporary resurgence, the market remains mature. The segment is expected to grow at a modest one per cent CAGR as businesses continue transitioning to software-defined and cloud-native solutions.
With increasing cyber threats and a shift towards cloud-first approaches, organisations are expected to continue prioritising network security investments, the report said.
