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Network Security Market Sees Growth in 2Q 2024

REDWOOD CITY, Calif., Sept. 11, 2024 /PRNewswire/ — A recent report by Dell’Oro Group has indicated that the Network Security sector is experiencing a rebound, with a 6 percent year-over-year increase in the second quarter of 2024. This growth has propelled the market to $5.9 billion, effectively ending a trend of six quarters marked by decline.

The surge in demand for cloud-native security solutions and virtual firewalls played a vital role in this recovery, demonstrating a significant increase of 17 percent in these areas. Conversely, traditional hardware-based security solutions continued to struggle, marking their fourth consecutive quarter of decline with a 2 percent decrease.

According to Mauricio Sanchez, Senior Director of Enterprise Security and Networking at Dell’Oro Group, “The performance in 2Q 2024 underscores the ongoing transition towards cloud-centric security frameworks. The firewall segment exemplifies this dynamic transformation. Despite an overall modest increase of 2 percent in firewall revenue, virtual firewalls showed remarkable growth of 22 percent, contrasting starkly with the lagging physical firewall sales.” This disparity in performance highlights the preference of businesses for adaptable, cloud-native security measures that align with their changing operational needs.

Key Insights from the 2Q 2024 Network Security Quarterly Report

The report also revealed several noteworthy trends across various segments within the Network Security landscape:

• The Infrastructure Security market, which includes firewalls, Security Service Edge (SSE), and traditional Secure Web Gateway (SWG) appliances, reached nearly $5 billion, reflecting mid-single-digit growth.
• The Application Security and Delivery domain, covering Application Delivery Controllers (ADC) and Web Application Firewall (WAF) technologies, achieved high single-digit growth, totaling $1.2 billion. This growth was primarily driven by robust WAF sales, which compensated for declining ADC performance.
• Revenue from SSE solutions nearly hit $1.5 billion, with leading vendors such as Zscaler, Palo Alto Networks, and Broadcom capturing almost 60 percent of the market share.
• WAF solutions enjoyed an 18 percent revenue increase, bolstered by a remarkable 25 percent rise in SaaS-based WAF offerings.
• High-end physical firewalls showed signs of recovery, posting a slight 1 percent increase in revenue, indicating a potential turning point after enduring several quarters of downturn.

For more detailed information, you can read the full Network Security Report. This report encompasses revenue figures from various manufacturers within segments such as ADCs, Firewalls, SSE, traditional SWGs, and WAFs. Additionally, SSE data is categorized into primary functions like CASB, FWaaS, SWG, and ZTNA, along with segmentations by form factor, including physical, virtual, and SaaS models. Interested parties can inquire about acquiring the report at info@delloro.com.

For those interested in market research and analysis in telecommunications and security, Dell’Oro Group specializes in providing comprehensive insights to support informed business strategies. Additional information can be found on their official website or by contacting them directly.

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