|
Cloud-Friendly Network Security Solutions Grow 18 Percent to $11 Billion as Hardware Slips 2 Percent in 2024, According to Dell'Oro Group
Thursday, March 20, 2025
Enterprises to Balance Cloud-Friendly Solutions with Traditional Hardware as Hardware
Recovery Expected in 2025
REDWOOD CITY, Calif., March 12, 2025 /PRNewswire/ -- 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 rebounded significantly in 4Q 2024, growing 9 percent year-over-year (Y/Y). For 2024, the market eclipsed $24 B, with SaaS and virtual-based solutions achieving robust 18 percent growth, offsetting a 2 percent decline in hardware revenue. Hardware revenue is expected to recover with a 5 percent rise in 2025, as enterprises balance cloud-first strategies with traditional hardware investments.
"The remarkable rise of SaaS and virtual network security solutions has fundamentally reshaped enterprise cybersecurity strategies, creating a dynamic where hardware now trails cloud-based innovation," said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell'Oro Group. "Yet, physical appliances will regain modest momentum, particularly in segments like application delivery and high-performance firewalls, as inventory levels normalize and deferred upgrades resume."
Additional highlights from the 4Q 2024 Network Security Quarterly Report:
-- Firewall market revenue grew three percent Y/Y for the full year,
propelled by the strong 22 percent growth in virtual firewall solutions
amid the increasing adoption of hybrid and cloud environments.
-- The Security Service Edge (SSE) market grew 16 percent year over year
for the full year. However, its growth has been decelerating, reflecting
2023 macroeconomic pressures and increasing market maturity.
-- Application Delivery Controllers (ADCs) grew eight percent Y/Y for the
full year, bolstered by deferred physical hardware refreshes, despite an
ongoing shift toward virtual and cloud-native ADC deployments.
-- Web Application Firewall (WAF) annual revenue increased 19 percent Y/Y,
driven by cloud-native deployments and the evolving threat landscape.
-- The Network Security market is forecast to grow 11 percent in 2025,
boosted by continued strength in cloud solutions and recovery in
hardware spending.
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. To purchase this report, please contact us at dgsales@delloro.com.
About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/cloud-friendly-network-security-solutions-grow-18-percent-to-11-billion-as-hardware-slips-2-percent-in-2024-according-to-delloro-group-302399593.html
SOURCE Dell'Oro Group
|
|
|
|
|
|
 |
Energy Toolbase Launches Energy Storage Partnership with Sungrow to Support PowerStack 255CS and PowerTitan 2.0 | Jan 22, 2026
|
|
RS now offers Phoenix Contact's pioneering new NearFi technology | Jan 22, 2026
|
|
Quantum Art Raises $100 Million in Series A Round to Drive Scalable, Multi-Core Quantum Computing | Jan 22, 2026
|
|
MetaOptics to Showcase Five Breakthrough Metalens-Powered Products at CES 2026 | Jan 22, 2026
|
|
Fresco Raises EUR15m Series C to Power the Future of AI-Driven Cooking and the Connected Kitchen Ecosystem | Jan 22, 2026
|
|
No Assembly Required: Barrett Distribution Centers Powers Maxwood Furniture's West Coast DTC Expansion | Jan 22, 2026
|
|
SCAILIUM Debuts "AI Production Layer" to Overcome GPU Starvation and Slash AI Energy Waste | Jan 22, 2026
|
|
Einride and IonQ Partnership Uses Quantum Computing to Optimize the Logistics of Electric and Autonomous Freight | Jan 22, 2026
|
|
Hesai Recognized as the Only Lidar Company on Morgan Stanley's "Humanoid Tech 25" of Global Robotics Leaders | Jan 22, 2026
|
|
Lumana Surpasses 50,000 Cameras, Cementing Its Leadership in AI Video Surveillance | Jan 22, 2026
|
|
|
|
