Network Security Market to Reach USD38 Billion by 2029

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According to a recently published report from Dell’Oro Group, the worldwide network security market, including firewall, SSE, traditional SWG appliance, WAF, and ADC segments, is projected to grow to USD38 billion by 2029, representing a 10% five-year compounded annual growth rate (CAGR).

By 2026, cloud-friendly network security solutions will account for more than half of the total market revenue, driven by their scalability, flexibility, and alignment with cloud-first and hybrid work strategies.

“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,” said the Dell’Oro Group’s Mauricio Sanchez. “Cloud-first strategies, combined with increasing cyber threats, are accelerating investments in scalable, AI-enhanced security solutions such as virtual firewalls, WAF, and SSE solutions.”

Additional takeouts from Network Security Five-Year January 2025 Forecast Report covering the years from 2024 to 2029 include;

  • Firewalls: While the overall Firewall market is expected to grow at an 8% CAGR, virtual firewalls stand out with a projected 15% CAGR, reflecting their critical role in hybrid cloud deployments;
  • Web application firewalls (WAF): The WAF market is set to achieve a 13% CAGR, driven by digital transformation initiatives and the growing need to secure applications hosted in multi-cloud environments;
  • Security service edge (SSE): SSE revenue is forecast to surpass USD11 billion by 2029, achieving a 14% CAGR as organizations increasingly adopt cloud-delivered security solutions; and
  • Application delivery controllers (ADC): Despite a temporary resurgence in physical ADC sales, the market remains mature, with a projected 1% CAGR, as enterprises transition to software-defined and cloud-native solutions.
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