AI Automation and Cloud Are Widening Threat Exposure and Creating Explosive Growth
REDWOOD CITY, Calif. – February 3, 2026 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the worldwide network security market, including firewall, security service edge (SSE), traditional secure web gateway (SWG) appliance, web application firewall (WAF), and application delivery segments (ADC) segments, is projected to exceed $41 B by 2030. Enterprises are maintaining their network security investment because cloud operating models and AI-assisted automation continue to expand the number of points at which security policy must be enforced, while also compressing the time available to detect, contain, and remediate fast-moving threats.
“Boards keep funding network security programs because cloud adoption and AI automation widen threat exposure and lessen risk tolerance, which elevates the value of network security controls that can update and scale quickly,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group. “Across network security segments, the market is moving toward distributed enforcement with centralized governance, as buyers prioritize consistent policy, stronger evidence, and simpler operations across users, applications, and APIs,” added Sanchez.
Additional highlights from Network Security 5-Year January 2026 Forecast Report:
- Firewalls are projected to remain the largest segment by revenue, but the compounded annual growth rate (CAGR) for physical appliance firewall revenue is anticipated to be a tepid 5 percent. In contrast, virtual appliance firewall revenue is projected to grow at a robust 18 percent CAGR.
- Security Service Edge (SSE) revenue is forecast to double from 2025 to 2030, achieving a 15 percent revenue CAGR as enterprises embrace cloud‑delivered security for users and applications everywhere.
- Web Application Firewalls (WAF) revenue is projected to nearly double between 2025 and 2030, supported by rising API exposure, cloud migration, and broader application security standardization.
Dell’Oro Group publishes the Network Security 5-year forecasts offering a complete overview of the industry with tables covering the same segments and metrics captured in our quarterly reports. In addition, the forecasts provide a comprehensive overview of market trends by including historical data as far back as 1998. To purchase this report, please contact us at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, networks, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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