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, global Network Security revenue reached 6.4 B in 2Q 2025, growing 8 percent year-over-year Y/Y. The expansion was driven by double-digit gains in Security Service Edge SSE and Application Delivery Controllers ADC, as enterprises adopted AI-aware application protection and platform consolidation strategies to streamline operations and enhance defenses. In contrast, uneven hardware appliance refresh cycles tempered firewall growth, exposing the divergent trajectories between software-led and appliance-based.
"SSE grew 19 percent and ADC surged 24 percent, both more than double the overall market's 8 percent rise, while virtual firewalls climbed 27 percent and physical appliances contracted 5 percent, underscoring the tilt toward cloud- and software-delivered controls. Enterprise buyers are rewarding vendors that integrate AI-aware inspection and consolidate management consoles, and this mix shift will persist as organizations recalibrate hardware footprints and embrace cloud application-centric architectures."
- Mauricio Sanchez, Sr. Director, Enterprise Security and Networking, Dell'Oro Group
