SaaS-Based Network Security Grows 26% in Q3 2021 According to Dell’Oro Group


REDWOOD CITY California., December 16, 2021 /PRNewswire/ — According to a recently released report by Dell’Oro Group, the trusted source for market intelligence for the telecommunications, networking and IT data center industries, pent-up demand created after the 2020s pandemic shutdowns is combined with the strong focus on business digitalization and new threats to give a huge boost to the network security market. The magnitude of the demand is further amplified by the many fiscal stimulus measures from governments which are helping to increase macroeconomic confidence. So far, the network security industry has largely weathered the supply chain chaos affecting other markets as vendors have shrewdly maneuvered to meet demand.

“The growth this quarter reflects an uncommon alignment between enterprise IT teams demanding more investments in security and business leaders who are ready to do so,” said Mauricio Sanchez, Research Director, Network Security at Dell’Oro Group. “While spending on the more modern Secure Access Service Edge (SASE) and Zero Trust approaches has skyrocketed, even that of the more traditional perimeter firewall has seen healthy growth.”

Additional highlights from the Quarterly Network Security Report Q3 2021:

  • Software-as-a-service (SaaS)-based network security, comprised of cloud-delivered services
    Email Security, Secure Web Gateway (SWG) and Web Application Firewall (WAF), reached a total of $1.2 billion in Q3 2021, representing 26% year-over-year (Y/Y) growth.
  • SaaS-based SWGs, which are vital to SASE and are beginning to go by the name Secure Service Edge (SSE), grew 35% year-over-year and are on track to surpass $2 billion for the year 2021.
  • Revenue from physical firewall appliances grew 14% and is about to crack $10 billion for the year 2021.

About the report
The Dell’Oro Group Network Security Report includes revenue from manufacturers spanning Firewall, SWG, Email Security, WAF, and ADC product segments. The report also divides many segments by form factor: physical appliance, virtual appliance, and SaaS. Additionally, as of 2Q21, the report includes preliminary analysis from SASE vendors. To purchase this report, please contact us at [email protected].

About the Dell’Oro Group
Dell’Oro Group is a market research firm specializing in strategic competitive analysis in the telecommunications, networking and IT data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate fact-based critical business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit

SOURCE Dell’Oro Group


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