The Network Security and Data Center Appliance market, consisting of the Firewall, Content Security, Intrusion Detection System and Intrusion Prevention System (IDS and IPS), and Application Delivery Controller (ADC) markets, is forecasted to grow at 6% five-year CAGR and go from $14 B in 2019 to $19 B in 2024, according to Dell’Oro Group’s newly published 5-Year Forecast report.
- The ongoing COVID-19 pandemic will continue to impact the market both negatively and positively throughout 2020 and into the first half of 2021, assuming that an effective therapy or a vaccine is developed that allows society to restabilize.
- In aggregate, the network security market, which consists of the Firewall, Content Security, IDS, and IPS markets, will continue to experience both positive and negative factors. The negative factor of delayed spending will have a slight advantage, however, leading to flat Y/Y growth in 2020.
- Dell’Oro expects that post-pandemic, the network security market will return to the overall growth of 8% Y/Y from 2021 to 2024 and reach $17.1 B in 2024.
- The network security market will vary significantly from historical growth trends during the pandemic. The report predicts that the Content Security and Firewall market will rebound and return to nominal growth post-pandemic. However, the IPS and IDS market will not and will continue to its long decline.
- During the pandemic, the ADC market will be affected by both positive and negative factors. Overall, we anticipate that the positive factor of surge spending will keep growth in positive territory at 1% Y/Y in 2020.
- Post-pandemic, we expect that the ADC market will accelerate slightly faster than Dell’Oro predicted in its previous forecast due to the combination of positive factors ranging from market demand and vendor dynamics. The five-year CAGR forecast is 1% versus our prior forecast of flat growth.