The network security market is on an accelerated growth trajectory, poised to reach $38 billion by 2029, according to the latest research from Dell’Oro Group. With a projected 10 percent compounded annual growth rate (CAGR) over the next five years, the expansion is largely driven by the adoption of cloud-friendly security solutions that align with modern hybrid work and multi-cloud environments.
The Cloud-First Security Shift
The increasing reliance on cloud infrastructure is reshaping the security landscape. By 2026, cloud-native and virtualized security solutions are expected to account for more than half of the market's total revenue. Enterprises are embracing AI-enhanced security platforms that offer scalability and flexibility in an era where cyber threats are evolving faster than ever.
“We are witnessing an undeniable shift as enterprises embrace virtual and cloud-based solutions to meet the evolving demands of hybrid work and multi-cloud environments,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group.
“Cloud-first strategies, combined with increasing cyber threats, are accelerating investments in scalable, AI-enhanced security solutions such as virtual firewalls, WAF, and SSE solutions.”
Key Market Trends
According to Dell’Oro’s Network Security 5-Year Forecast Report, covering 2024–2029, several core segments within network security are set to see notable growth:
Firewalls: The firewall market is expected to grow at an 8 percent CAGR, with virtual firewalls leading the charge at a 15 percent CAGR. The surge is attributed to their vital role in securing hybrid cloud environments.
Web Application Firewalls (WAF): As enterprises accelerate their digital transformation efforts, WAFs will play a key role in securing cloud-hosted applications, driving a 13 percent CAGR.
Security Service Edge (SSE): This segment is forecast to exceed $11 billion by 2029, experiencing a 14 percent CAGR as organizations shift toward cloud-delivered security solutions.
Application Delivery Controllers (ADC): The ADC market remains stable, with a modest 1 percent CAGR as businesses transition toward software-defined and cloud-native networking.
The Security Imperative: Bridging Cloud and On-Prem Environments
Organizations increasingly seek unified security solutions that seamlessly protect both cloud and on-premise environments. The challenge? Many cloud providers offer only baseline security, leaving enterprises to implement more robust defenses on their own.
“The growth in network security is certainly fueled by expansion of enterprise networks and regulations around securing infrastructure,” said Thomas Richards, Principal Consultant, Network and Red Team Practice Director at Black Duck. “With organizations increasingly utilizing cloud providers, there’s a need to implement security solutions that go beyond what the providers offer. Additionally, enterprise security teams are looking for single solutions for both their on-premise and cloud environments. Having full visibility into their network gives these teams the ability to stop and detect attacks.”
The Rise of SSE: A Game-Changer for Cybersecurity
Secure Service Edge (SSE) is emerging as a cornerstone of modern cybersecurity strategies, providing cloud-delivered security that meets the needs of increasingly remote and hybrid workforces.
“SSE is becoming a critical component of modern cybersecurity strategies, supporting digital transformation and cloud-first initiatives,” said Alexandra Mehat, Director, Secure Access Service Edge (SASE) at Fortinet. “With a dispersed workforce, organizations need security solutions that provide consistent protection regardless of user location.”
Why Cloud-Delivered SSE is Outpacing Traditional Security
Cloud-delivered SSE offers several advantages over legacy security architectures:
Improved User Experience – SSE enables direct-to-cloud connections through local Points of Presence (PoPs), reducing latency compared to backhauling traffic through corporate data centers.
Stronger Security Posture – Continuous cloud-based security updates adapt to emerging threats, unlike static perimeter defenses.
Scalability and Flexibility – Organizations can dynamically scale security services as their cloud footprint grows.
Simplified Management – Centralized policy control and unified visibility enhance operational efficiency while reducing administrative overhead.
With the rise of ransomware, phishing, and advanced persistent threats (APTs), the demand for zero-trust security frameworks has never been greater. SSE integrates secure web gateways (SWG), cloud access security brokers (CASB), and Zero Trust Network Access (ZTNA) into a single, unified model—eliminating inefficiencies caused by fragmented security architectures.
The Bottom Line
As enterprises navigate an increasingly complex threat landscape, the push toward cloud-native security solutions is no longer optional—it’s inevitable. The next five years will see a rapid evolution in network security strategies, with AI, automation, and cloud-delivered defenses taking center stage. Organizations that fail to adapt risk being left behind in an era where cyber resilience is a competitive advantage.