Worldwide spending on network security hardware is forecast to exceed $90-billion during 2025 to 2030, according to new report from Dell’Oro Group.
Hardware revenue – comprising physical firewall, SWG appliance, WAF and ADC appliance – is projected to achieve a seven percent compound annual growth rate (CAGR) during 2025 to 2030, up from 3,8% during 2020 to 2025.
“AI infrastructure investment and risk-led refresh cycles are restoring momentum to network security hardware as enterprises replace aging systems and add capacity where performance, resilience, and local control remain essential,” says Mauricio Sanchez, senior director: enterprise security and networking at Dell’Oro Group.
“This is not a return to hardware-first architectures, but a more balanced market in which physical appliances, virtual software, and SaaS expand where they provide the strongest operational fit.”
Additional highlights from Network Security July 2026 5-Year Forecast Report, encompassing the years from 2025 to 2030 include:
- End-of-support deadlines, active exploitation of aging infrastructure, rising performance requirements, digital sovereignty, and AI infrastructure investment are supporting network security hardware growth.
- Firewalls are projected to remain the largest network security hardware segment by revenue, exceeding $20-billion by 2030 and expanding at a nearly double-digit CAGR rate over the next five years.
- Security Service Edge (SSE) revenue is forecast to double from 2025 to 2030, achieving a 16% revenue CAGR as enterprises continue to embrace cloud‑delivered security to enforce AI usage and data security for users and branches everywhere.
- Web Application Firewalls (WAF) revenue is projected to nearly double and exceed $7-billion by 2030, supported by rising AI-related API exposure and application security standardisation.