Dell’Oro Group publishes Network Security quarterly reports containing current, in-depth market-level and detailed market share information on the following product segments:
Firewalls (High End, Midrange, Low End)
Security Service Edge
Secure Web Gateway appliances
Web Application Firewalls
Application Delivery Controllers
The reports include tables showing manufacturers’ revenue across three form factors (physical appliances, virtual appliances, SaaS) and for select segments, units/licenses, and average selling prices.
We also track:
Total market by region—North America, EMEA (Europe, Middle East, and Africa), Asia Pacific, and CALA (Caribbean and Latin America)
Vendor market share by region—North America, EMEA (Europe, Middle East, and Africa), Asia Pacific, and CALA (Caribbean and Latin America)
Cloud-Native Network Security Up 17 Percent, Hardware Down 2 Percent as Network Security Market Hits $5.9 B in 2Q 2024, According to Dell’Oro Group
Enterprises Embrace Agile Solutions as Hardware Decline Persists
REDWOOD CITY, Calif.
According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the Network Security market showed signs of recovery in 2Q 2024, growing 6 percent year-over-year (Y/Y) to reach $5.9 billion and breaking a streak of six consecutive quarters of deceleration. This growth was primarily driven by solid demand for cloud-native security solutions and virtual firewalls, which saw a 17 percent increase. In contrast, hardware-based solutions experienced their fourth consecutive quarter of decline, dropping 2 percent.
“The Network Security market’s performance in 2Q 2024 reaffirms the enduring shift towards cloud-centric architectures,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group. “The firewall segment serves as a microcosm of this transformation. While overall firewall revenue grew modestly at 2 percent, virtual firewalls surged by 22 percent as physical firewall sales struggled. This stark contrast in growth rates within a single product category underscores how enterprises consistently favor flexible, cloud-native security solutions to address their evolving needs.”
Additional highlights from the 2Q 2024 Network Security Quarterly Report:
The Infrastructure Security market, comprising firewalls, Security Service Edge (SSE), and traditional Secure Web Gateway (SWG) appliances, achieved nearly $5 billion, marking a mid-single-digit growth.
The Application Security and Delivery market, including Application Delivery Controllers (ADC) and Web Application Firewall (WAF) segments, experienced high single-digit growth, reaching $1.2 billion, primarily driven by robust WAF sales that offset the weakness of ADCs.
SSE revenue increased to nearly $1.5 billion, with the top three vendors – Zscaler, Palo Alto Networks, and Broadcom – controlling almost 60 percent of the market.
WAF revenue rose 18 percent, driven by a 25 percent growth in SaaS-based WAF solutions.
High-end physical firewalls showed signs of stabilization with a slight 1 percent revenue growth, potentially indicating a turning point after several quarters of decline.
About the Report
The Dell’Oro Group Network Security Report includes manufacturers’ revenue covering the ADC, Firewall, SSE, traditional SWG appliances, and WAF product segments. Moreover, SSEs are further broken down across four primary functions: CASB, FWaaS, SWG, and ZTNA. The report also splits many segments by form factor: physical, virtual, and SaaS.
