SaaS-based Network Security Revenue to Surpass $60 Billion
According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, demand for network security–which includes email security, firewall, security service edge (SSE), secure web gateway (SWG), and web application firewall (WAF) technologies–is expected to remain healthy over the next five years as solid enterprise investment in cloud applications and hybrid work drive the need for greater security and offset macro-economic headwinds.
“Compared with our previous forecast in January 2022, the world is a different place with stubbornly high inflation and a regional war in Europe, and as a result, we incrementally lowered our near-term network security revenue projections,” said Mauricio Sanchez, Research Director, Network Security, and SASE & SD-WAN at Dell’Oro Group. “However, we see the near-term softness to be transitory and offset by stronger growth in later years as enterprises remain focused on securing the shift to being cloud-first and mobile-friendly,” added Sanchez.
Additional highlights from Network Security July 2022 5-Year Forecast Report:
- SSE market revenue to experience a compounded annual growth rate (CAGR) of nearly 30 percent from 2021 to 2026. Secure Web Gateway (SWG) and Cloud Access Security Broker (CASB) are expected to remain the most significant revenue components over the five-year forecast horizon, but Zero Trust Network Access (ZTNA) and Firewall-as-a-Service (FaaS) are estimated to flourish at a faster rate.
- Firewall market is expected to remain the largest network security segment by revenue and is forecasted to grow at an 8 percent CAGR over the forecast horizon.