Global Network Security revenue reached $6,2-billion in 1Q 2025, expanding 12% year-on-year, according to new research from Dell’Oro Group.
The application security and delivery (AS&D) submarket – encompassing Web Application Firewalls (WAF) and Application Delivery Controllers (ADCs) – grew 21% due to AI-centric threats compelling organisations to harden front-end services and API using a combination of virtual and SaaS-based solutions.
“The remarkable rise of SaaS and virtual network security solutions has fundamentally reshaped enterprise cybersecurity strategies, creating a dynamic where hardware now trails cloud-based innovation,” says Mauricio Sanchez, senior director, Enterprise Security and Networking at Dell’Oro Group. “Yet, physical appliances will regain modest momentum, particularly in firewalls and ADCs, as inventory levels normalise and deferred upgrades resume.”
Additional highlights from the 1Q 2025 Network Security Quarterly Report include:
- Network Security market projected to eclipse $26-billion in 2025, reflecting high single-digit growth powered by zero-trust mandates, AI workloads, and continued cloud workload expansion.
- Within AS&D, virtual ADC revenue jumped 49% year-on-year while SaaS WAF accelerated by 21%.
- Firewall revenue rebounded 8% year-on-year, with physical appliances up 5% and virtual firewalls advancing 27%.
- Security Service Edge (SSE) revenue climbed 15% year-on-year.
- Secure Web Gateway (SWG) appliance sales declined 5% year-on-year, underscoring migration toward SSE suites.
- Virtual and SaaS-based Network Security solutions captured 78% of new spend.