Dell’Oro Group Reports 8 Percent Growth in Network Security Revenue in Q2 2025

The Dell’Oro Group's latest report indicates that global revenue from network security reached $6.4 billion in the second quarter of 2025, reflecting an 8 percent year-over-year growth. This increase is attributed to significant gains in Security Service Edge (Security Services Edge (SSE)) and Application Delivery Controllers (Application Delivery Controller (ADC)), as organizations adopt AI-focused protection strategies.

Market Growth Overview

The report highlights that Security Services Edge (SSE) experienced a 19 percent increase and Application Delivery Controller (ADC) surged by 24 percent, both notably outpacing the overall market growth. Moreover, virtual firewalls rose by 27 percent, while physical appliance revenues contracted by 5 percent, suggesting a shift towards software and cloud-based solutions in network security.

Revenue Projections

Forecasts indicate that revenue from cloud- and software-delivered security solutions is expected to grow by 20 percent in 2025, whereas hardware appliance revenues are predicted to decline by 2 percent. The entire Network Security market is anticipated to exceed $26 billion in 2025, bolstered by zero-trust mandates and expanding cloud workloads.

Product Performance Insights

In terms of specific products, virtual ADC revenues increased dramatically by 49 percent year-over-year, with Software-as-a-Service (SaaS) Web Application Firewall (WAF) revenues growing by 21 percent. Virtual and SaaS-based solutions currently account for 78 percent of new market spending.

Conclusion

This report underscores the ongoing trend of organizations favoring cloud and software-based solutions over traditional hardware in their network security strategies. This summary is a fact-based representation of the original report's findings and highlights key growth areas for decision-makers in the industry.