The global Network Security market eclipsed over $6 B in 3Q 2024, growing 8 percent year-over-year (Y/Y) according to a new report from Dell’Oro Group. For the first time in over a year, hardware-based solutions stabilized, balancing the market alongside strong double-digit growth from SaaS and virtual solutions. This dynamic underscores the ongoing pivot toward cloud-native security architectures while maintaining a transitional equilibrium between traditional and cloud-centric approaches.
“The 3Q 2024 market highlights a pivotal moment where enterprises balance investments across physical, virtual, and SaaS security solutions,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group. “However, the long-term trajectory clearly favors SaaS and virtual solutions as they align with evolving enterprise security strategies.”
Additional highlights from the 3Q 2024 Network Security Quarterly Report:
- Firewalls: Total firewall revenue remained above $3 B, growing three percent Y/Y. Virtual firewalls led the segment with 22 percent growth, while physical firewalls stabilized after several quarters of contraction, driven by midrange and low-end gains.
- SSE: The Security Service Edge (SSE) market grew 14 percent Y/Y to $1.4 B. Its growth has been on a deceleration trend as a reflection of 2023 macroeconomic pressures and increasing market maturity.
- SWG Appliances: Secure Web Gateway (SWG) appliances declined three percent Y/Y, reflecting the ongoing shift to cloud-based SSE platforms.
- ADCs: Application Delivery Controllers (ADCs) posted a 14 percent Y/Y revenue increase, driven by deferred upgrades, though long-term growth remains constrained by market maturity.
- WAFs: Web Application Firewalls (WAFs) grew 18 percent Y/Y, fueled by rising demand for API security and protection against sophisticated web-based threats.
- The Network Security market is expected to sustain moderate growth through 2025, driven by hybrid and cloud-centric investments, with quarterly growth fluctuating between 9 and 10 percent. Virtual and SaaS-based solutions will lead growth, while physical appliances stabilize.