Pent-up Demand, Digitalization Efforts, and New Threats Spurring Growth
REDWOOD CITY, Calif. – December 16, 2021 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the pent-up demand created after the 2020 pandemic shutdowns has combined with the attention on enterprise digitalization and new threats to provide the network security market an enormous boost. Further amplifying demand is the copious amounts of fiscal stimulus by governments helping to increase macro-economic confidence. Thus far, the network security industry has largely overcome the supply chain chaos affecting other markets, as vendors have deftly maneuvered to satisfy demand.
“This quarter’s growth reflects an uncommon alignment between enterprise IT teams asking for more security investment and business leadership willing to do so,” said Mauricio Sanchez, Research Director, Network Security at Dell’Oro Group. “While spend on more modern Secure Access Service Edge (SASE) and Zero Trust approaches skyrocketed, even that for the more traditional perimeter firewall experienced healthy growth.”
Additional highlights from the 3Q 2021 Network Security Quarterly Report:
- Software-as-a-Service (SaaS)-based Network Security, consisting of cloud-delivered Email Security, Secure Web Gateway (SWG), and Web Application Firewall (WAF), achieved a total of $1.2 B in 3Q 2021, representing 26 percent growth year-over-year (Y/Y).
- SaaS-based SWGs which are vital to SASE and starting to go by the Secure Service Edge (SSE) name, were up 35 percent Y/Y and on track to surpass $2 B for full-year 2021.
- Physical firewall appliance revenue rose 14 percent and is on trajectory to crack $10 billion for full-year 2021.
The Dell’Oro Group Network Security Report includes manufacturers’ revenue covering the Firewall, SWG, Email Security, WAF, and ADC product segments. The report also splits many segments by form factor: physical appliance, virtual appliance, and SaaS. In addition, starting in 2Q21, the report includes a preliminary analysis of SASE vendor share. 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, networks, and data center IT 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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