Dell’Oro Group analyzes trends in hybrid firewalls, CNaaS, and RAN markets - October 2025
Recent reports from Dell’Oro Group have highlighted critical developments across various technology markets, emphasizing significant trends in cybersecurity, networking, and Artificial Intelligence (AI) infrastructure.
The Hybrid Mesh Firewall (HMFW) and Microsegmentation markets are projected to exceed $26 billion by 2029, driven by enterprise adoption of zero-trust strategies and cloud-managed security solutions. The combined markets are expected to grow at a Compound Annual Growth rate (CAGR) nearing 20 percent, indicating a shift towards advanced security postures in hybrid environments.
In parallel, Dell’Oro Group analyzed the transformation of networking models with Campus Network as a Service (CNaaS), predicting it could capture over 10% of the Public Cloud-Managed Local Area Network (LAN) market by 2029. This evolving model allows enterprises to move from Capital Expenditure (CAPEX) to Operational Expenditure (OpEx), addressing complexities in network management amidst a growing demand for flexible solutions.
Furthermore, insights into the Radio Access Network (RAN) indicate a flat market trajectory over the next decade, with heightened capital expenditures towards 6G anticipated by 2030. This stagnation raises concerns for IT decision-makers in telecommunications as data utilization rates decline.
Lastly, developments in AI infrastructure indicate a pressing need for new networking strategies, particularly with the emergence of Optical Circuit Switches (OCS) that promise improved efficiency and lower latency in connecting GPUs for large-scale AI computations. This adaptability will be crucial as compute demands significantly exceed initial forecasts.
- AI Clusters Require New Networking Strategies, Assessing Optical Circuit Switch (OCS)
AI clusters demand new interconnect architectures. Dell’Oro analysts Sameh Boujelbene and Jimmy Yu assess OCS as a proven, power-efficient option for large-scale AI networks. - Dell’Oro Group Forecasts $26B Hybrid Mesh Firewall and Microsegmentation Market by 2029
Dell’Oro Group’s new report forecasts Hybrid Mesh Firewall and Microsegmentation markets to exceed $26B by 2029 as enterprises embrace zero-trust. - Dell’Oro Group Examines Transformation of LAN Models with Cloud Network-as-a-Service (CNaaS)
In Part 3 of Dell’Oro Group’s CNaaS blog series, Research Director Siân Morgan examines how subscription-based LAN models are transforming enterprise networking—shifting from CAPEX to opex—and why CNaaS could exceed 10% of the Public Cloud-Managed LAN market by 2029. - Dell’Oro Group: RAN Market Projected to Stay Flat
Dell’Oro Group indicates that a significant CAPEX shift towards 6G is expected by 2030, amidst a stagnant RAN revenue landscape. - Campus Network as a Service: Defining the Variants
CNaaS ensures enterprise needs are prioritized over vendor ambitions. Morgan’s blog defines three main CNaaS categories: Turnkey, Enabler, and LAN-as-a-Utility. - Dell’Oro Group forecasts $26 billion Hybrid Mesh Firewall market by 2029
Dell’Oro Group forecasts Hybrid Mesh Firewall and Microsegmentation markets to exceed $26B by 2029, driven by zero-trust adoption. - Dell’Oro Group examines CNaaS growth potential towards 2029
In the latest CNaaS installment, key trends in LAN-as-a-Service evolution are discussed as enterprises transition from CAPEX to OpEx models. - Exploring the Three CNaaS Variants
This blog discusses how CNaaS evolved to tackle real enterprise demands rather than vendor interests. - Dell’Oro Group projects flat RAN market with 6G CAPEX ramping up by 2030.
According to Dell’Oro Group, RAN revenues will not grow significantly, facing challenges as 6G investment ramps up around 2030. - Siân Morgan examines Campus Network as a Service (NaaS) offerings
Campus Network as a Service (NaaS) lacks definition, creating vendor confusion. Siân Morgan provides clarity on characteristics and service expectations.