The worldwide network security market – including firewall, SSE, traditional SWG appliance, WAF, and ADC segments – is expected to grow to nearly $40-billion by 2028, according to a new report from Dell’Oro Group.
This growth will be driven by a significant shift in enterprise security spending towards cloud-based Secure Service Edge (SSE) and Web Application Firewall (WAF) solutions which are forecast to achieve mid-teen double-digit CAGRs – in contrast to the single-digit CAGR projected for traditional firewall solutions.
“We’re seeing a major pivot in how enterprises approach security, with SSE and SaaS-based WAF solutions taking centre stage due to their superior flexibility and scalability as cloud-delivered solutions,” says Mauricio Sanchez, senior director, Enterprise Security and Networking at Dell’Oro Group. “As organisations increasingly embrace cloud-first strategies and digital transformation, these advanced security models are becoming indispensable and driving rapid market growth.”
Additional highlights from the Network Security Five-Year July 2024 Forecast Report include:
- SSE Market: The SSE market is anticipated to surpass $10-billion by 2028 with a double-digit CAGR. This robust growth is driven by the increasing transition of security perimeters to cloud-based services, catering to the needs of distributed applications and hybrid work models.
- WAF Market: Driven by the increased emphasis on digital transformation initiatives and the necessity of securely deploying enterprise applications on the Internet, the WAF market is projected to grow robustly. It is expected to reach nearly $6-billion by 2028, reflecting a double-digit CAGR.
- Firewall Market: The Firewall market is projected to grow at a single-digit CAGR, reaching over $19-billion by 2028. While near-term softness is expected as the market corrects from the pandemic-induced surge, a new refresh cycle is anticipated to alleviate this although it won’t be as strong as the post-pandemic boom.
- Form Factor Shift: SaaS and virtual-based solutions are expected to grow at a 16%t CAGR, compared to 6% for physical appliances. By 2026, SaaS and virtual-based solutions are projected to account for over half of the Network Security market.