The global network security market is on track to grow from $24 billion in 2024 to $38 billion by 2029, according to a new five-year forecast report by Dell’Oro Group. The growth, driven by hybrid work, cloud migration, and AI-powered cyber threats, marks a shift in enterprise security spending priorities – particularly toward software and SaaS-based solutions.

Dell’Oro Group’s analysis includes key security segments such as firewalls, Security Service Edge (SSE), traditional Secure Web Gateway (SWG) appliances, Web Application Firewalls (WAF), and Application Delivery Controllers (ADC).

While all categories contribute to the market’s overall expansion, SaaS and software-based offerings are expected to significantly outpace physical appliances, nearly doubling revenue to $22 billion by 2029.

“Enterprises are accelerating the move to elastic, cloud-centric security so they can adapt as quickly as the threat landscape evolves,” said Mauricio Sanchez, Senior Director of Enterprise Security and Networking at Dell’Oro Group. “Vendors that fuse networking and security into integrated software and SaaS-based platforms will capture the lion’s share of the $38 billion opportunity ahead.”

Among the report’s key takeaways:

• Firewalls will remain the dominant segment by revenue, growing at an 8% CAGR, with virtual deployments surpassing hardware refreshes
• SSE, a category encompassing cloud-delivered security for distributed users and applications, is forecast to double to $11 billion, growing at 14% annually
• WAF revenue is also expected to grow 14% CAGR, buoyed by increased demand for API protection and cloud-native application security
• ADC revenue will remain stable, with 1% CAGR, as software deployment offsets a declining appetite for dedicated hardware
• Traditional SWG appliances are set to decline at a 4% CAGR as enterprises shift toward SSE solutions

The Dell’Oro Group findings highlight the structural shift underway in network security, as enterprises adopt scalable, cloud-native defenses to keep pace with digital transformation and evolving cyber threats.

The Network Security 5-year projections, which are published by Dell’Oro Group, provide a thorough industry overview with tables that include the same sectors and indicators that are included in our quarterly reports. Additionally, by including historical data back to 1998, the predictions would offer a thorough summary of market patterns.