But Return to Normalcy and Slower Growth Expected in 2024 and Beyond
REDWOOD CITY, Calif. – February 14, 2023 – 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, enterprise spend on network security technologies–which includes email security, firewall, security service edge (SSE), secure web gateway (SWG), web application firewall (WAF), and application delivery controller (ADC) products–has 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 our 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.
Dell’Oro Group publishes the Network Security 5-Year Forecast Report offering a complete overview of the industry with tables covering the same segments and metrics captured in our quarterly reports. In addition, the forecasts provide a comprehensive overview of market trends by including historical data as far back as 1998. 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, security, networks, and data center 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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