The global firewall market grew 14% year over year (Y/Y) and reached close to $3 B in quarterly revenue in 2Q22 due to strong demand for firewall solutions, according to a recently released report from Dell’Oro Group, a global source for market information about the telecommunications, security, networks, and data center industries.
Revenue would have been higher had hardware appliance vendors kept pace with demand. For the sixth straight quarter, supply was insufficient to meet demand.
“While cloud-delivered network security solutions, like security service edge (SSE), have taken a rightful position in the enterprise security architecture, we still see a relevant role for firewall appliances,” said Mauricio Sanchez, Research Director, Network Security, and SASE & SD-WAN at Dell’Oro Group. “Firewalls are foundational to good enterprise network security hygiene, and we do not foresee any solution fully displacing them over the next five years.”
Web Application Firewalls (WAFs)
The manufacturers’ revenue for the ADC, Email Security, Firewall, SSE, SWG, and WAF product sectors is included in the Dell’Oro Group Network Security Report. The study also includes vendor share information for the four main security functions (CASB, FWaaS, SWG, and ZTNA) related to SSEs, commencing in the second quarter of 2022. The research also divides a number of sectors by form factor, including SaaS, virtual appliances, and physical appliances.
Additional highlights from Dell’Oro’s 2Q 2022 Network Security Quarterly Report include the following:
- Although sales of hardware firewalls increased by 12 percent YoY, they were outperformed by the strong demand for virtual firewalls, which increased by 61 percent YoY.
- By sales, the top 3 firewall vendors – Cisco, Fortinet, and Palo Alto Networks – represented more than half of the market.
- Revenue from web application firewalls (WAFs) increased by more than 30% year over year and is expected to easily surpass $2 B by the end of 2022.
- Over 50% of the market’s revenue was held by the top 3 WAF suppliers, Akamai, Cloudflare, and F5 Networks (in alphabetical order).