Network Security Market Grew 5.1 Percent in 4Q24

The network security market grew 5.1% year-over-year in 4Q24 and 3.1% for the full year, according to Omdia’s market estimates and forecast through to 2029. Palo Alto Networks retained its position as the market leader with a 28.4% share in 2024, driven by steady demand for security appliances and higher adoption of software and SASE components.

“Palo Alto Networks, Fortinet, Cisco, and Check Point continue to lead the network security market with each holding double-digit share consecutively for the last five years,” said Ketaki Borade, Omdia Senior Analyst, Infrastructure Security. “The growing adoption of SASE architecture is the driving force behind network security growth accelerating software integrations. As the threat landscape evolves, next-generation firewalls must integrate seamlessly with other security solutions. AI and machine learning (ML) will continue to play a critical role in enabling a more predictive and proactive security approach.”

“The dominance of the top four firewall vendors is not only a clear sign that this is a mature market but also an indication that, if they strategically position themselves well in the still early-stage SASE market, they have the potential to strengthen their grip on network security for years to come. Two of the four (Check Point and Cisco) have shifted away from internal cloud-native security (CNAPP) development, opting instead to OEM/white-label Wiz’s product. This highlights a deliberate choice of where to compete against market leader Palo Alto Networks. Their focus on SASE aligns with their firewall expertise and the rapid expansion of SaaS usage in enterprises,” added Rik Turner, Omdia Senior Principal Analyst, Cybersecurity.

Palo Alto has retained the top position since 2021 due to its platformization strategy, which emphasizes AI-driven product integration. Meanwhile, Cisco has climbed to third place, while Fortinet’s targeted approach of secure networking, unified SASE, and security operations has helped it reach second place. With 25% of its FortiGate devices due for refresh, Fortinet may see a revenue surge over the next two years. Looking ahead, Omdia anticipates strong growth for firewall vendors due to upcoming refresh cycles over the next two years, according to Borade. “However, all four top vendors have issued lower guidance for 2025 compared to last year, signaling market growth concerns.”

Several factors may be contributing to this cautious outlook, including enterprise cost-cutting,  prioritization of essential services, and a shift to cloud and SASE solutions. This transition is likely to impact demand for traditional hardware firewalls while software firewalls and firewall-as-a-platform gain traction. Overall, Omdia forecasts a 2.8% CAGR for the total network security market from 2024 to 2029, with firewall growth projected at 5.0% CAGR over the same period. “While the market remains growing, increased product integration and SASE adoption will continue to shape its evolution,” concluded Borade.