Projected Surge in Software and SaaS-Based Network Security Revenue by 2029
Projected Surge in Software and SaaS-Based Network Security Revenue by 2029
A recent study from Dell'Oro Group highlights an impressive upward trend in network security revenue, which is anticipated to approach $38 billion by 2029. This projection marks a significant rise from the current estimate of $24 billion, driven by the evolving corporate strategies necessitated by hybrid work environments and the continual migration of applications to cloud platforms. Key to this growth is not only the increase in overall revenue but the pronounced shift towards software and SaaS-based network security solutions. These models are expected to nearly double to $22 billion, thanks to their agility and scalability, characteristics increasingly valued by businesses in response to emerging threats.
According to Mauricio Sanchez, the Senior Director of Enterprise Security and Networking at Dell'Oro Group, "Enterprises are accelerating the move to elastic, cloud-centric security so they can adapt as quickly as the threat landscape evolves." This transition emphasizes the importance of integrated security solutions that combine networking and security functionalities into efficient software-as-a-service platforms.
Key Insights from the Report
The forecast report encompasses detailed insights into various segments of network security:
- - Firewalls: Expected to remain the dominant segment, with revenue growing at a compound annual growth rate (CAGR) of 8%, largely driven by the adoption of virtual firewalls over traditional hardware.
- - Security Service Edge (SSE): Projected to nearly double in value to $11 billion, showcasing an annual growth rate of 14% as organizations increasingly turn to cloud-delivered security solutions for encompassing user and application protection.
- - Web Application Firewalls (WAF): Anticipated to grow at a robust 14% CAGR, reflecting rising demand for API security and the surge in cloud-based applications.
- - Application Delivery Controllers (ADC): Expected to maintain steady growth with a modest 1% CAGR, as software solutions compensate for decreasing demand for hardware.
- - Traditional Secure Web Gateway (SWG) Appliances: Forecasted to decline at a rate of 4% annually, driven by a significant strategic shift toward SSE solutions.
Conclusion
Dell'Oro Group's analysis reveals that companies need to adapt swiftly to these rapid transitions in the network security landscape. As digitally driven threats become more sophisticated, organizations must prioritize the integration of their security models with emerging technologies like AI and cloud computing. By investing in flexible and scalable security infrastructures, they can establish a robust defense against new vulnerabilities that may arise.
To stay ahead, it is paramount for security vendors to innovate and create integrated solutions that synergize networking and security, positioning themselves to capitalize on the projected $38 billion market opportunity ahead. Understanding these trends will be essential for businesses aiming to enhance their cybersecurity posture in a rapidly changing environment.
For more comprehensive insights and detailed tables of market forecasts, Dell'Oro Group offers an extensive overview, which also includes historical data dating back to 1998. Interested parties can reach out for purchasing inquiries and additional information at [email protected].
Topics Business Technology）
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