The global network security market is projected to reach $38 billion by 2029, a substantial increase from $24 billion in 2024, according to a recent five-year forecast by Dell’Oro Group. This anticipated growth is largely attributed to the increasing adoption of Software as a Service (SaaS), cloud technologies, and the rise of AI-driven cybersecurity threats.
The analysis conducted by Dell’Oro Group highlights significant areas within the cybersecurity landscape, including firewalls, Security Service Edge (SSE), Secure Web Gateways (SWG), Web Application Firewalls (WAF), and Application Delivery Controllers (ADC). The report indicates that while all segments are expected to expand, the SaaS and software-based solutions are set to outpace physical appliances, with revenue projected to nearly double, reaching $22 billion by 2029.
Mauricio Sanchez, Senior Director of Enterprise Security and Networking at Dell’Oro Group, remarked that enterprises are accelerating their transition to agile, cloud-based security solutions to better adapt to the evolving threat landscape. Vendors that integrate networking and security into unified software and SaaS platforms are positioned to dominate the forthcoming market opportunities.
Key highlights from the report include:
- Firewalls will continue to lead in revenue, with an expected growth rate of 8% annually, driven primarily by an increase in virtual deployments.
- SSE is predicted to grow to $11 billion, expanding at a remarkable 14% annually, as it encompasses cloud security measures for remote users and applications.
- WAF revenue will also see substantial growth at 14% CAGR, propelled by rising demands for API protection and cloud-native application security.
- ADC revenues are expected to remain stable, as software deployments compensate for a diminishing need for dedicated hardware.
- Traditional SWG appliances are forecasted to decline by 4% annually, reflecting a shift toward advanced SSE solutions.
The findings from Dell’Oro Group underscore a structural transformation within network security, as organizations adopt scalable and cloud-centric defenses to keep pace with ongoing digital transformations and emerging cyber threats. Their latest projections not only provide insights into market trends but also draw on extensive historical data dating back to 1998, offering a comprehensive view of market dynamics in network security.
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