Network Security Market to Hit $38 billion by 2029Network Security Market to Hit $38 billion by 2029

The global network security market is expected to reach $38 billion by 2029, according to Dell’Oro Group, which projects a 10% compound annual growth rate (CAGR).

The global network security market includes firewall, security service edge (SSE), traditional secure web gateway (SWG) appliance, web application firewall (WAF) and application delivery controller (ADC). 

By 2026, cloud-friendly network security solutions will account for over half of the total market revenue, according to Dell'Oro Group. Scalability, flexibility, and alignment with cloud-first and hybrid work strategies will drive that growth.

Dell'Oro's Mauricio Sanchez

“We are witnessing an undeniable shift as enterprises embrace virtual and cloud-based solutions to meet the evolving demands of hybrid work and multicloud environments,” said Mauricio Sanchez, senior director of enterprise security and networking at Dell’Oro Group. “Cloud-first strategies, combined with increasing cyber threats, are accelerating investments in scalable, AI-enhanced security solutions such as virtual firewalls, WAF and SSE solutions.”

More Network Security Report Highlights

The research firm also notes that virtual firewalls are expected to grow at a faster rate (15%) than the rest of the overall firewall market (8%).

Dell'Oro Group makes a few other insights:

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Thomas Richards, principal consultant, and network and red team practice director at Black Duck, said the growth in network security is fueled by expansion of enterprise networks and regulations around securing infrastructure.

“With organizations increasingly utilizing cloud providers, there’s a need to implement security solutions that go beyond what the providers offer,” he said. “Additionally, enterprise security teams are looking for single solutions for both their on-premise and cloud environments. Having full visibility into their network gives these teams the ability to stop and detect attacks.”

Alexandra Mehat, director of secure access service edge (SASE) at Fortinet, said SSE is becoming a critical component of modern cybersecurity strategies, supporting digital transformation and cloud-first initiatives.

Related:SASE Market to Reach $16 Billion by 2028

“With a dispersed workforce, organizations need security solutions that provide consistent protection regardless of user location," she said. "SSE enables secure access to applications and data without relying on legacy VPNs. Organizations migrating workloads to the cloud require security solutions that extend protection beyond traditional data centers. SSE provides cloud-native security tailored for SaaS, IaaS and hybrid environments. Increasing ransomware, phishing and advanced persistent threats (APTs) are pushing organizations to adopt zero trust principles, which SSE enforces through SWG, cloud access security brokers (CASB) and zero trust network access (ZTNA). Managing multiple security appliances (e.g., firewalls, VPNs, SWGs) increases complexity, cost and inefficiencies. SSE consolidates security functions into a unified, cloud-delivered model, reducing overhead and simplifying management.”