Redwood City, California – 6 November 2025 – The global market for Hybrid Mesh Firewall (HMFW) platforms and Microsegmentation technologies is projected to surpass US$26 billion by 2029, according to a new report from market research firm Dell’Oro Group. The study anticipates nearly 20 percent compound annual growth over the next five years, driven by the accelerating adoption of zero-trust security frameworks and cloud-managed policy enforcement.
The findings suggest that organisations are increasingly extending least-privilege access and segmentation controls across hybrid environments that include on-premises, virtual, and cloud workloads. This evolution is reshaping enterprise network security architectures, where traditional perimeter-based firewalls are being complemented by distributed enforcement systems designed for modern, hybrid infrastructures.
Mauricio Sanchez, Senior Director of Enterprise Security and Networking at Dell’Oro Group, said the market growth reflects a shift in enterprise priorities toward visibility, automation, and resilience. “As enterprises continue on their zero-trust journey, they need to enforce segmentation and threat detection across users and workloads, whether on-premises, remote, or in the cloud,” he said. “Hybrid Mesh Firewall and Microsegmentation solutions are enabling distributed enforcement across hybrid environments, delivering unified visibility, faster policy execution, and the operational resilience that enterprises now demand.”
The report defines the Hybrid Mesh Firewall Platform market as encompassing unified policy management, threat prevention, and logging across physical, virtual, and cloud-delivered environments. Microsegmentation, meanwhile, provides fine-grained control within and between workloads, helping to prevent lateral movement of threats and forming a key component of zero-trust network architecture.
According to Dell’Oro Group, while the market for traditional physical firewall appliances has stagnated in 2025, revenue growth in software-defined security sectors has been substantial. HMFW-related revenue increased by more than 40 percent in the SD-WAN segment and by over 50 percent in the security service edge (SSE) category during the second quarter of 2025.
Among vendors, Palo Alto Networks ranked as the top HMFW platform provider by revenue, while Broadcom led the Microsegmentation market during the same period.
The report provides regional breakdowns for North America, EMEA, Asia-Pacific, China, and Latin America, as well as forecasts through 2029. It highlights the expanding role of software-based, cloud-orchestrated security solutions as enterprises prepare for a future of distributed networks and adaptive threat landscapes.
Dell’Oro Group’s findings reinforce a broader industry trend toward hybrid security architectures that blend on-premises and cloud-native tools to improve control, compliance, and scalability. As zero-trust initiatives mature, analysts expect microsegmentation and hybrid firewall platforms to form the core of enterprise network defense strategies over the coming decade.
