The pent-up demand created after the 2020 pandemic shutdowns has combined with the attention on enterprise digitalisation and new threats to provide the network security market an enormous boost.

According to a new report from Dell’Oro Group, further amplifying demand is the copious amounts of fiscal stimulus by governments helping to increase macro-economic confidence.

Thus far, the network security industry has largely overcome the supply chain chaos affecting other markets, as vendors have deftly manoeuvred to satisfy demand.

“This quarter’s growth reflects an uncommon alignment between enterprise IT teams asking for more security investment and business leadership willing to do so,” says Mauricio Sanchez, research director: network security at Dell’Oro Group. “While spend on more modern Secure Access Service Edge (SASE) and Zero Trust approaches skyrocketed, even that for the more traditional perimeter firewall experienced healthy growth.”

Additional highlights from the 3Q 2021 Network Security Quarterly Report include:

  • Software-as-a-Service (SaaS)-based Network Security, consisting of cloud-delivered Email Security, Secure Web Gateway (SWG), and Web Application Firewall (WAF), achieved a total of $1,2-billion in 3Q 2021, representing 26% growth year-over-year (Y/Y).
  • SaaS-based SWGs which are vital to SASE and starting to go by the Secure Service Edge (SSE) name, were up 35% Y/Y and on track to surpass $2-billion for full-year 2021.
  • Physical firewall appliance revenue rose 14% and is on trajectory to crack $10-billion for full-year 2021.