#USA #Cloud Solutions #Redwood City #Dell'Oro Group #Network Security

Cloud Security Solutions Surge by 18% in 2024

In a recent study conducted by the Dell'Oro Group, notable developments have been observed in the market dynamics of network security. Security solutions that are cloud-friendly have seen a remarkable growth of 18%, propelling the industry's total revenue to a staggering $11 billion in the year 2024. Conversely, traditional hardware revenue has declined by 2%. This divergence in trends underscores a significant shift in how enterprises are adapting to contemporary security challenges.

The report highlights that during the fourth quarter of 2024, the network security market experienced a resurgence, showing a year-over-year growth of 9%. Overall, the market surpassed the $24 billion mark for the year, driven predominantly by Software as a Service (SaaS) and virtual-based security solutions. These tools are increasingly becoming essential as businesses pivot towards more agile, cloud-first strategies as part of their cybersecurity frameworks.

The Changing Landscape of Network Security

Mauricio Sanchez, Senior Director for Enterprise Security and Networking at Dell'Oro Group, states, "The remarkable rise of SaaS and virtual network security solutions has fundamentally reshaped enterprise cybersecurity strategies. This developing landscape emphasizes the role of cloud-based innovations over traditional hardware. Nevertheless, as inventory levels stabilize and previously postponed upgrades resume, we can expect measured recovery in the hardware segment."

Indeed, projections for 2025 suggest a 5% uptick in hardware revenue, signifying that physical devices will continue to participate in the market, albeit at a slower pace. Key sectors such as application delivery and high-performance firewall solutions are anticipated to drive this recovery.

Highlights from the 4Q 2024 Network Security Quarterly Report:

• - Growth of Firewall Markets: The firewall sector recorded an impressive 3% growth year-over-year, powered largely by a 22% surge in virtual firewall solutions, which have become vital amid the transition towards hybrid and cloud environments.
• - Security Service Edge (SSE) Market: Although the SSE market expanded by 16% year-on-year, its pace has moderated due to macroeconomic challenges and market maturation observed in 2023.
• - Adoption of Application Delivery Controllers (ADCs): With an 8% growth in ADCs, this rise is largely attributed to deferred hardware refreshes in light of the ongoing shift towards virtual and cloud-native deployments.
• - Web Application Firewall (WAF) Insights: WAF revenue saw a compelling 19% increase over the previous year, spurred by cloud-native deployments and evolving threats to web applications.

As enterprises navigate this unfolding landscape, the resilience of cloud solutions coupled with the rebound in hardware spending paints a cautiously optimistic picture for the future of cybersecurity. The network security market is projected to grow by 11% in 2025, reaffirming the necessity for ongoing investments in both cloud and traditional security measures.

Understanding the Dell'Oro Report

The overview provided in the Dell'Oro Group Network Security Report encompasses various manufacturers' revenues across critical segments such as particularly focusing on the ADC, Firewall, SSE, traditional Secure Web Gateway (SWG), and WAF products. The report meticulously categorizes SSE into primary functions, including Cloud Access Security Broker (CASB), Firewall as a Service (FWaaS), SWG, and Zero Trust Network Access (ZTNA). Moreover, resources such as physical, virtual, and SaaS solutions are detailed for a comprehensive understanding of the market landscape. For those interested in purchasing the full report, Dell'Oro Group can be contacted for access.

About Dell'Oro Group

Founded as a market research organization, Dell'Oro Group is renowned for its strategic analysis within the telecommunications, security, enterprise networks, and data center sectors. Their insights provide invaluable qualitative and quantitative data to aid businesses in making informed decisions in a challenging marketplace. For further information or queries, you can reach out via their website or contact their office directly.