Network Security Revenue Reached $6.4 Billion in 2Q 2025

The expansion was driven by double-digit gains in Security Service Edge and Application Delivery Controllers.

Sept. 17, 2025

2 min read

According to a recently published report from Dell'Oro Group, the global Network Security revenue reached $6.4 billion in 2Q 2025, growing 8% 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% and ADC surged 24%, both more than double the overall market's 8% rise, while virtual firewalls climbed 27% and physical appliances contracted 5%, underscoring the tilt toward cloud- and software-delivered controls," said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell'Oro Group. "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."

Additional highlights from the report:

Revenue associated with cloud- and software-delivered network security controls is projected to increase by 20% in 2025, while hardware appliances are expected to decline by 2%.
Network Security market projected to eclipse $26 billion in 2025, reflecting high single-digit growth powered by zero-trust mandates, AI workloads, and continued cloud workload expansion.
Within AS&D, virtual ADC revenue jumped 49% Y/Y while SaaS WAF accelerated by 21%.
Virtual and SaaS-based Network Security solutions captured 78% of new spend.

The Dell'Oro Group Network Security Report includes manufacturers' revenue covering the ADC, Firewall, SSE, traditional SWG appliances, and WAF product segments. Moreover, SSEs are further broken down across four primary functions: CASB, FWaaS, SWG, and ZTNA. The report also splits many segments by form factor: physical, virtual, and SaaS.

Source: Dell'Oro Group