According to a recently published report from Dell’Oro Group, email security, firewall, security service edge (SSE), secure web gateway (SWG), web application firewall (WAF), and application delivery controller (ADC) product have all been on a rebound after the depths of the Covid-19 pandemic in 2020 with strong momentum that is expected through 2023.
However, the pace of revenue growth in the subsequent years, through 2027, is forecast to be slightly weaker.
“We have been pleasantly surprised by the ongoing revenue rebound of the network security market that is expected to hit nearly 15 percent year-on-year growth in 2022, and is a testament to the high priority enterprises are placing on security,” said Mauricio Sanchez, Research Director, Network Security, and SASE & SD-WAN at Dell’Oro Group. “Nonetheless, we believe what goes up must come down. So while we don’t expect anything resembling a crash, we are forecasting spending to modulate downwards to historical norms starting in 2024 as enterprises digest what was already purchased and tighten budgets incrementally,” added Sanchez.
Additional highlights from Network Security January 2023 5-Year Forecast Report:
- The sum of 2022 and 2023 network security revenue was revised upwards for the second consecutive time from $47.6 B in July 2022 forecast to $48.8 B in our current.
- Network Security market to experience a low double-digit compounded annual growth rate (CAGR) from 2022 to 2027.