Dell’Oro Group Finds Network Security Hardware Spending to Exceed $90 Billion Through 2030

Dell’Oro Group forecasts worldwide spending on Network Security hardware to exceed $90 billion during 2025–2030, with hardware revenue growing at a seven percent CAGR as refresh cycles replace aging systems and add capacity.

Market overview

The report projects that Network Security hardware revenue, including physical Firewall, SWG Appliance, WAF, and ADC appliances, will reach a seven percent compound annual growth rate over 2025–2030.

It contrasts the forecast with 3.8 percent CAGR during 2020–2025 and links the change to investment cycles and demand for performance, resilience, and local control.

Drivers and segment outlook

Dell’Oro Group cites end-of-support deadlines, active exploitation of aging infrastructure, rising performance requirements, digital sovereignty, and AI infrastructure investment as factors supporting Network Security hardware growth.

Firewalls are projected to remain the largest Network Security hardware segment by revenue, exceeding $20 billion by 2030, with growth described as nearly double-digit CAGR over the next five years.

Security Service Edge and WAF

Security Service Edge (SSE) revenue is forecast to double from 2025 to 2030, reaching a 16 percent revenue CAGR as enterprises adopt cloud-delivered security for users and branches.

Web Application Firewalls (WAF) revenue is projected to nearly double and exceed $7 billion by 2030, supported by rising AI-related API exposure and application security standardization.

Analyst commentary

Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group, said, “AI infrastructure investment and risk-led refresh cycles are restoring momentum to Network Security hardware as enterprises replace aging systems and add capacity where performance, resilience, and local control remain essential.”

He also said, “This is not a return to hardware-first architectures, but a more balanced market in which physical appliances, virtual software, and SaaS expand where they provide the strongest operational fit.”

Forecast scope

The report is part of Dell’Oro Group’s Network Security 5-year forecast coverage for 2025–2030, with tables for Firewall, Secure Web Gateway (SWG) Appliance, Security Service Edge (SSE), Application Delivery Controller (ADC), and WAF markets.

It includes historical data dating back to 1998, according to the report summary.

Dell’Oro Group’s forecast centers on Network Security hardware spending rising above $90 billion through 2030, with growth tied to enterprise refresh cycles and multiple demand drivers, including AI infrastructure investment. This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.