Growth in the network security sector rebounded in Q2, according to Dell'Oro Group's report.
In a recent report, Dell'Oro Group, a leading research firm in the field of enterprise networking, has revealed that the network security market witnessed a modest 1.5% increase in revenue during the second quarter of the current year, reaching a total of $5.9 billion. This growth comes after six consecutive quarters of declining growth, marking a change in direction for the market.
The report highlights Palo Alto Networks as the leading vendor in both physical and virtual firewalls, maintaining a commanding 29% share of the firewall segment in the quarter. The next closest competitors, Cisco and Fortinet, each held a 15% share of the overall firewall segment.
The growth in the network security market was primarily driven by cloud-native security tools and virtual firewalls. In fact, virtual firewall revenue jumped 22% year over year to $420 million in the quarter. Physical firewall sales, however, declined 1% year over year to $2.8 billion.
The report underscores how enterprises are consistently favoring flexible, cloud-native security solutions. This shift is likely a response to the heightened levels of malicious activity targeting firewalls, the largest product segment in the network security market. Attackers are actively exploiting a critical vulnerability in SonicWall OS, the software powering the security vendor's firewalls, and similar vulnerabilities have been discovered in devices sold by Barracuda, Citrix, Fortinet, Ivanti, and Palo Alto Networks in the last couple of years.
Looking ahead, Dell'Oro Group's latest forecast predicts that the network security market will reach $40 billion by 2028, with more than $19 billion in firewall sales. This projected growth is in line with the overall cybersecurity market, which is expected to reach $377 billion by 2028 according to IDC, and $562.72 billion by 2032 with a CAGR of 14.3%.
As the threat landscape continues to evolve, the demand for advanced network security solutions is likely to increase. The AI in Cybersecurity Market is predicted to grow from $22.4 billion in 2023 to $60.6 billion by 2028, with a CAGR of 21.9%. These advancements will undoubtedly shape the future of the network security market, ensuring businesses remain protected in the face of increasing cyber threats.
- In light of the report, the firewall segment, a key player in the network security market, is dominated by Palo Alto Networks with a 29% share.
- The growth in the network security market is attributed to the boom in cloud-native security tools and virtual firewalls, with virtual firewall revenue increasing by 22% year over year.
- The report emphasizes the rising vulnerability of firewalls to malicious activity, as attackers are found exploiting a critical vulnerability in SonicWall OS and similar flaws have been discovered in devices manufactured by various vendors like Barracuda, Citrix, Fortinet, Ivanti, and Palo Alto Networks.
