The demand for network security solutions, which includes email security, firewall, security service edge (SSE), secure web gateway (SWG), and web application firewall (WAF) technologies, is anticipated to remain healthy over the next five years as strong enterprise investment in cloud applications and hybrid work drive the market.
Demand for these network security solutions is expected to exceed $150 billion over the next five years, according to a report that was just released by Dell’Oro Group, a trusted source for market information about the telecommunications, networks, and data center industries.
“Compared with our previous forecast in January 2022, the world is a different place with stubbornly high inflation and a regional war in Europe, and as a result, we incrementally lowered our near-term network security revenue projections,” said Mauricio Sanchez, Research Director, Network Security, and SASE & SD-WAN at Dell’Oro Group. “However, we see the near-term softness to be transitory and offset by stronger growth in later years as enterprises remain focused on securing the shift to being cloud-first and mobile-friendly.”
Fast Growth Firewall-as-a-Service and ZTNA Demand
Additional highlights from Dell’Oro’s Network Security July 2022 5-Year Forecast Report include:
- From 2021 to 2026, the SSE market’s revenue is expected to expand at a compound annual growth rate (CAGR) of approximately 30 percent. Over the five-year forecast horizon, Secure Web Gateway (SWG) and Cloud Access Security Broker (CASB) are anticipated to continue to contribute the most to revenue, while Zero Trust Network Access (ZTNA) and Firewall-as-a-Service (FaaS) are anticipated to grow more quickly.
- The market for firewalls is anticipated to continue being the largest network security subsegment by revenue throughout the forecast period and will expand at a CAGR of 8%.
The Network Security 5-year forecast study, published by Dell’Oro Group, would provide a comprehensive overview of the industry with tables that include the same market categories and data as our quarterly studies. In addition, by adding historical data going all the way back to 1998, the predictions would give a thorough perspective of market patterns.