According to a recently published report from Dell’Oro Group, the worldwide Network Security market maintained its ongoing rebound from the 2020 pandemic-induced recession with the eighth consecutive quarter of stronger revenue growth, and the sixth quarter of double-digit revenue growth.
The supply of hardware-based network solutions increased significantly and provided vendors an excellent opportunity to whittle down backlogs built during the past year.
“The investment in digital transformation and hybrid work initiatives continued to drive the network security market across both traditional hardware-based and more modern cloud-delivered network security solutions,” said Mauricio Sanchez, Research Director, Network Security, and SASE & SD-WAN at Dell’Oro Group. “However, as pessimism about near-term macroeconomic conditions increases and enterprises tighten budget belts, we are expecting some modulation of growth as we enter 2023. Network Security remains a top enterprise priority, and while no market is recession-proof, network security has traditionally been very recession resilient,” added Sanchez.
Additional highlights from the 3Q 2022 Network Security Quarterly Report:
- Firewall quarterly revenue exceeded $3 B for the first time on historically high revenue growth.
- The top 3 firewall vendors, Cisco, Fortinet, and Palo Alto Networks (in alphabetical order), represented 55 percent of the market by revenue.
- Zscaler owned the number one revenue position in the SSE segment and held a 12 percent lead over number two Symantec/Broadcom.