REDWOOD CITY, CA., February 3, 2022 /PRNewswire/ — According to a recently released report by Dell’Oro Group, the trusted source for market information for the telecommunications, networking, and data center computing industries, the demand for software as a service (SaaS) and virtual Network-based network security is expected to account for 51% of $33 billion total network security market revenue by 2026.
“Since the arrival of the first network security appliances in the 1980s, the network security market has been dominated by an assortment of purpose-built appliances, but we are seeing a seismic shift underway,” said Mauricio Sanchez, Research Director, Network Security at Dell’Oro Group. “Among enterprises embracing cloud applications and hybrid working as the new norm, we see them preferring SaaS and virtual network security solutions that better serve these use cases. Hardware security systems will disappear, but they no longer represent the vanguard of network security that they once were,” Sanchez added.
Additional highlights from the Network Security 5-Year Forecast Report:
- SaaS and virtual web application firewalls (WAFs), a core capability of cloud workload security solutions, are expected to grow at a compound annual growth rate (CAGR) of 25% from 2021 to 2026. This strong growth is the increased number of business applications being made accessible over the Internet to both friends (employees, partners) and enemies (hackers).
- SaaS-based Secure Web Gateways (SWGs), fundamental to the Secure Access Service Edge (SASE) architecture, are expected to grow at a CAGR of 23% from 2021 to 2026 as hybrid working becomes more mainstream.
- Revenue from physical firewall appliances, which accounted for more than 75% of total hardware-based network security revenue in 2020, is only expected to grow at a CAGR of 7% from 2021 to 2026.
About the report
The Dell’Oro Group Network Security 5-Year Forecast Report offers a comprehensive industry overview with charts covering the same segments and metrics captured in our quarterly reports. Additionally, the forecast provides a comprehensive overview of market trends by including historical data dating back to 1998 and for four legacy markets (WAN Optimization, SSL/VPN, Content Security, and IDS/IPS). For more information on this report, please contact us at [email protected].
About the Dell’Oro Group
Dell’Oro Group is a market research firm specializing in strategic competitive analysis in the telecommunications, networking and IT data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate fact-based critical business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
SOURCE Dell’Oro Group