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.
This is among the findings of a new report from Dell’Oro Group.
“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,” says 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.”
The Network Security July 2022 5-Year Forecast Report also finds that SSE market revenue should experience a compounded annual growth rate (CAGR) of nearly 30% 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.
The firewall market is expected to remain the largest network security segment by revenue and is forecasted to grow at an 8% CAGR over the forecast horizon.