AI and Refresh Cycles Reenergize Network Security Hardware Market, According to Dell'Oro Group

AI and Refresh Cycles Reenergize Network Security Hardware Market, According to Dell'Oro Group

PR Newswire

REDWOOD CITY, Calif., Aug. 4, 2026

Over $90 B Forecast Through 2030 as CAGR Accelerates to 7 Percent

REDWOOD CITY, Calif., Aug. 4, 2026 /PRNewswire/ -- 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, worldwide spending on Network Security hardware is forecast to exceed $90 B during 2025–2030. Hardware revenue—comprising physical Firewall, SWG Appliance, WAF, and ADC appliances—is projected to achieve a seven percent compound annual growth rate (CAGR) during 2025–2030, up from 3.8 percent during 2020–2025.

"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," said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell'Oro Group. "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," added Sanchez.

Additional highlights from Network Security July 2026 5-Year Forecast Report encompassing the years from 2025 to 2030:

• End-of-support deadlines, active exploitation of aging infrastructure, rising performance requirements, digital sovereignty, and AI infrastructure investment are supporting Network Security hardware growth.
• Firewalls are projected to remain the largest Network Security hardware segment by revenue, exceeding $20 B by 2030 and expanding at a nearly double-digit CAGR rate over the next five years.
• Security Service Edge (SSE) revenue is forecast to double from 2025 to 2030, achieving a 16 percent revenue CAGR as enterprises continue to embrace cloud‑delivered security to enforce AI usage and data security for users and branches everywhere.
• Web Application Firewalls (WAF) revenue is projected to nearly double and exceed $7 B by 2030, supported by rising AI-related API exposure and application security standardization.

About the Report
Dell'Oro Group publishes the Network Security 5-year forecasts offering a complete overview of the industry with tables covering the Firewall, Secure Web Gateway (SWG) Appliance, SSE, Application Delivery Controller (ADC), and WAF markets. 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.

About Dell'Oro Group
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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SOURCE Dell'Oro Group