Dell'Oro Group reports network security revenue topped $6 billion in 3Q 2025

Dell'Oro Group published a report that found global Network Security revenue surpassed $6 B in third-quarter 2025 and that full-year 2025 revenue was on track to exceed $26 B, and the results showed differing performance between cloud-delivered and hardware-centric segments.

The report said the total market grew 9 percent year over year; Security Services Edge (SSE) sustained nearly 20 percent Y/Y growth and Web Application Firewalls (WAF) rose about 12 percent, while traditional firewall appliances expanded in the low single digits as refresh cycles normalized.

The Network Security Quarterly Report covered manufacturers' revenue for Application Delivery Controller (ADC), Firewall, SSE, traditional Secure Web Gateway (SWG) appliances, and Web Application Firewall (WAF), and it broke SSE into Cloud Access Security Broker (CASB), Firewall-as-a-Service (FWaaS), SWG, and Zero-Trust Network Access (ZTNA), with many segments split by physical, virtual, and Software-as-a-Service (SaaS) form factors.

“The gap between cloud-native agility and legacy hardware has never been starker; while the total market grew 9 percent, SSE surged 20 percent, and WAF climbed 12 percent, proving that the edge is where the modern security budget is actually being spent,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell'Oro Group.

The report projected the Network Security market would approach $29 B in 2026, with stronger growth than in 2025 attributed to cloud workload adoption and sustained demand for application-layer protections.