Enterprise spend on network security technologies – including email security, firewall, security service edge (SSE), secure Web gateway (SWG), Web application firewall (WAF), and application delivery controller (ADC) products – has been on the rebound after the dismal depths of the Covid-19 pandemic, says the Dell’Oro Group.
But, the research organisation adds, while this surge in growth should gain strong momentum in 2023, it is expected that the pace of revenue growth in the subsequent years, through 2027, will be slightly weaker.
“We have been pleasantly surprised by the ongoing revenue rebound of the network security market which is expected to hit nearly 15% year-on-year growth in 2022 and is testament to the high priority enterprises are placing on security,” says Mauricio Sanchez, research director, Network Security, and SASE & SD-WAN at Dell’Oro Group. “Nonetheless, we believe what goes up must come down. So while we don’t expect anything resembling a crash, we are forecasting spending to modulate downwards to historical norms starting in 2024 as enterprises digest what was already purchased and tighten budgets incrementally.”
Additional highlights from the Network Security 2023 five-year forecast report include:
• The sum of 2022 and 2023 network security revenue was revised upwards for the second consecutive time from $47,6-billion in the July 2022 forecast to $48,8-billion in the current.
• The network security market will experience a low double-digit compounded annual growth rate (CAGR) from 2022 to 2027.