#USA #Redwood City #Dell'Oro Group #SSE #WAF

Expansion of Network Security Market

The Network Security sector is making waves in the tech world, as recent analyses indicate that the market is set to surpass $26 billion by the end of 2025. According to the latest report published by Dell'Oro Group, a reputable market research firm, the surge in revenue for this quarter has been significant, marking a growth of 9% in total market revenue, which exceeded $6 billion in the third quarter of 2025 alone.

The standout performers in this accelerating market are Security Service Edge (SSE) and Web Application Firewalls (WAF). These innovative cloud-delivered security solutions lead the charge on market expansion. SSE experienced an impressive 20% year-over-year growth, reflecting a growing consensus among organizations to adopt zero-trust user access and cloud-native inspection practices. Likewise, WAF revenue is also seeing mid-teen growth, largely buoyed by ongoing investments in application modernization initiatives.

Mauricio Sanchez, who serves as Sr. Director for Enterprise Security and Networking at Dell'Oro Group, highlighted that the disparity between cloud-native agility and traditional hardware remains evident. While legacy hardware firewall appliances are enjoying slower growth in the low single digits, the urgent need for decentralized access and enhanced application protection has prompted businesses to invest more significantly in cloud solutions. This trend marks a crucial pivot where money is flowing towards the cloud edge rather than conventional systems.

Market Insights:

In the specialized report, several key factors are identified that contribute to current market trends:

• - SSE is the most critical factor in this escalation, maintaining nearly 20% year-on-year growth as firms seek robust security anew in a digital-first world.
• - An upturn in WAF revenues is being attributed to modernizing applications, underscoring a shift in investment priorities.
• - Traditional firewall sales are stabilizing, observing modest single-digit growth - a holistic sign of a mature market responding to cyclical refreshes.
• - Projections for 2026 suggest that the Network Security market could reach nearly $29 billion, further enhanced by rising cloud workload adoption and persistent needs for application-layer protections.

The ongoing trends underscore a clear bifurcation in the market, with cloud-native solutions outpacing their hardware counterparts. While traditional appliances are faring better than previously, indications point to a prioritized shift towards more modern, agile security methods in the cloud.

Conclusion:

In light of the dramatic changes in the network security landscape, it's essential for businesses of all sizes to reconsider their investment strategies and prioritize solutions that not only secure their data assets but also offer adaptability in a rapidly evolving technical environment.

This insightful report from the Dell'Oro Group serves as a strategic guide for stakeholders seeking to navigate the shifting waters of network security and understand where investment will yield the best returns in a cloud-first future.