Global network security revenue reached $6,4-billion in 2Q 2025 – growing 8% YoY – according to new research from Dell’Oro Group.
Growth has been driven by double-digit gains in Security Service Edge (SSE) and Application Delivery Controllers (ADC), as enterprises adopted AI-aware application protection and platform consolidation strategies to streamline operations and enhance defences. In contrast, uneven hardware appliance refresh cycles tempered firewall growth – exposing the divergent trajectories between software-led and appliance-based.
“SSE grew 19% and ADC surged 24% – both more than double the overall market’s 8% rise – while virtual firewalls climbed 27% and physical appliances contracted 5%, underscoring the tilt toward cloud- and software-delivered controls,” says Mauricio Sanchez, senior director, Enterprise Security and Networking at Dell’Oro Group. “Enterprise buyers are rewarding vendors that integrate AI-aware inspection and consolidate management consoles, and this mix shift will persist as organisations recalibrate hardware footprints and embrace cloud application-centric architectures.”
Additional highlights from the 2Q 2025 Network Security Quarterly Report include:
- Revenue associated with cloud- and software-delivered network security controls is projected to increase by 20% in 2025, while hardware appliances are expected to decline by 2%.
- 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% YoY while SaaS WAF accelerated by 21%.
- Virtual and SaaS-based Network Security solutions captured 78% of new spend.