Hardware Demand Outstripped Supply for Sixth Consecutive Quarter
REDWOOD CITY, Calif. – September 29, 2022 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, robust demand for firewall solutions drove the total firewall market to surge 14 percent year-over-year (Y/Y) and approach $3 B in quarterly revenue in 2Q22. Revenue would have been higher had hardware appliance vendors kept pace with demand. Demand outstripped supply for the sixth consecutive quarter.
“While cloud-delivered network security solutions, like security service edge (SSE), have taken a rightful position in the enterprise security architecture, we still see a relevant role for firewall appliances,” said Mauricio Sanchez, Research Director, Network Security, and SASE & SD-WAN at Dell’Oro Group. “Firewalls are foundational to good enterprise network security hygiene, and we do not foresee any solution fully displacing them over the next five years,” added Sanchez.
Additional highlights from the 2Q 2022 Network Security Quarterly Report:
- Hardware firewall revenue accelerated 12 percent Y/Y but was outpaced by the solid demand for virtual firewalls that saw a 61 percent Y/Y increase.
- The top 3 firewall vendors, Cisco, Fortinet, and Palo Alto Networks (in alphabetical order), represented over 50 percent of the market by revenue.
- Web application firewall (WAF) revenue saw an over 30 percent Y/Y increase and on path to easily exceed $2 B for the full-year 2022.
- The top 3 WAF vendors, Akamai, Cloudflare, and F5 Networks (in alphabetical order), represented over 50 percent of the market by revenue.
The Dell’Oro Group Network Security Report includes manufacturers’ revenue covering the ADC, Email Security, Firewall, SSE, SWG, and WAF product segments. In addition, starting in 2Q 2022, the report provides vendor share for the four primary security functions (CASB, FWaaS, SWG, and ZTNA) associated with SSEs. The report also splits many segments by form factor: physical appliance, virtual appliance, and SaaS. To purchase this report, please contact us at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, enterprise networks, and data center infrastructure, and security markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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