The global network security market is on a trajectory toward significant growth, with projections indicating it will reach nearly $40 billion by 2028, driven largely by the adoption of cloud-based security solutions. According to a recent report by the Dell’Oro Group, this market encompasses key segments such as firewall, Secure Service Edge (SSE), traditional Secure Web Gateway appliances, Web Application Firewall (WAF), and Application Delivery Controller (ADC). The demand for these solutions is escalating due to the increased reliance on distributed applications and hybrid work models, compelling enterprises to seek robust security frameworks that can scale and adapt to new challenges. The shift towards cloud-native and flexible solutions is a fundamental trend that is reshaping the landscape of network security.
The Dell’Oro Group’s analysis underscores the rise of Secure Service Edge (SSE) as a particularly influential segment within the network security market. SSE is predicted to see strong growth, achieving a valuation exceeding $10 billion by 2028. This growth corresponds to a mid-teen double-digit compound annual growth rate (CAGR), highlighting the sector’s appeal to enterprises prioritizing scalable, cloud-delivered security solutions. The transition to SSE represents a strategic maneuver for many organizations seeking enhanced security for their increasingly dispersed workforces and applications hosted in multiple environments.
The Rise of Secure Service Edge (SSE)
The Secure Service Edge (SSE) market is emerging as one of the fastest-growing segments in the network security domain, poised to surpass the $10 billion mark by 2028. This projected growth reflects a mid-teen double-digit CAGR, signaling robust demand for cloud-based security solutions that offer flexibility and scalability. The increasing dependence on distributed applications and hybrid work models is propelling enterprises to adopt SSE solutions, which can efficiently manage and secure network traffic across various endpoints. As organizations move beyond traditional on-premise security measures, SSE provides a more dynamic approach, safeguarding data and applications in an ever-expanding digital ecosystem.
Enterprises are looking to SSE to deliver robust, edge-to-cloud security services that can adapt to the complexities of modern IT environments. These solutions combine multiple security functions, including secure web gateway, cloud access security broker, and zero trust network access, into a unified service. This integration not only simplifies security management but also ensures comprehensive protection against evolving threats. As more businesses embrace digital transformation, the importance of SSE in safeguarding cloud resources and remote workforces becomes increasingly apparent, driving its market growth.
The Evolution of Web Application Firewall (WAF) Market
Alongside the rise of SSE, the Web Application Firewall (WAF) market is set to experience significant growth, fueled by ongoing digital transformation initiatives. By 2028, the WAF market is projected to approach $6 billion, with a notable double-digit CAGR. This growth is attributed to the critical need for secure deployment of enterprise applications online and the rising incidences of web-based threats. As businesses continue to expand their digital presence, the demand for robust WAF solutions that can protect web applications from cyberattacks is intensifying. This market evolution reflects the broader trend of prioritizing cloud-native security measures to safeguard vital digital assets.
The growing adoption of WAF solutions is in line with enterprises’ strategic shifts towards cloud-based infrastructures. As organizations transition to more flexible and scalable cloud environments, they require advanced security measures to protect against increasingly sophisticated cyber threats. WAF solutions provide essential protection by filtering and monitoring HTTP traffic between web applications and the internet, thereby preventing common attacks such as SQL injection, cross-site scripting, and DDoS attacks. The emphasis on securing web applications in dynamic cloud ecosystems underscores the pivotal role of WAF solutions in the broader network security market.
Traditional Firewall Market and the Shift to SaaS
In contrast to the rapid growth of SSE and WAF segments, the traditional firewall market is anticipated to grow at a more modest pace, with a single-digit CAGR, reaching over $19 billion by 2028. The market is currently experiencing a correction following a pandemic-induced surge in demand. Nevertheless, a new refresh cycle is expected, albeit not as vigorous as the post-pandemic boom. Enterprises continue to rely on traditional firewalls as a crucial component of their security architectures, but the momentum is increasingly shifting towards more adaptable solutions. This gradual change underscores the evolving nature of network security strategies in response to emerging threats and technological advancements.
A significant forecast from the Dell’Oro report pertains to the form factor of network security solutions, predicting a substantial shift towards Software as a Service (SaaS) and virtual-based products. These solutions are expected to grow at a 16 percent CAGR, compared to a mere 6 percent for physical appliances. By 2026, SaaS and virtual solutions are projected to comprise over half of the network security market, marking a pivotal change in how enterprises approach security. This shift is driven by the advantages associated with cloud-delivered services, including superior flexibility, scalability, and the ability to rapidly adapt to new security challenges. As organizations strive to enhance their security postures, the adoption of SaaS-based solutions will likely continue to accelerate.
Conclusion: The Future of Network Security
The global network security market is poised for substantial growth, projected to approach $40 billion by 2028, largely fueled by the increasing adoption of cloud-based security solutions. A recent Dell’Oro Group report highlights key segments within this market, including firewall, Secure Service Edge (SSE), traditional Secure Web Gateway appliances, Web Application Firewall (WAF), and Application Delivery Controller (ADC). The surge in demand for these solutions is driven by the growing reliance on distributed applications and hybrid work models, pushing enterprises to invest in robust security frameworks that scale and adapt to emerging challenges. The shift towards cloud-native, flexible solutions marks a significant trend reshaping the network security landscape.
Dell’Oro Group’s report emphasizes the prominent rise of SSE within the network security sector. SSE is expected to experience significant growth, surpassing $10 billion by 2028, with a mid-teen double-digit compound annual growth rate (CAGR). This underscores its appeal to enterprises seeking scalable, cloud-delivered security solutions. The move to SSE is a strategic choice for many organizations aiming to bolster security for their increasingly dispersed workforces and applications hosted across multiple environments.
