Network Security Market Size, Growth, Share & Forecast Analysis 2030

Name: Network Security Market Size, Growth, Share & Forecast Analysis 2030
Creator: Mordor Intelligence
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Network Security Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 24.95 Billion
Market Size (2030)	USD 42.93 Billion
Growth Rate (2025 - 2030)	11.47% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	North America
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Network Security Market (2025 - 2030) — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Network Security Market Analysis by Mordor Intelligence

The network security market reached USD 24.95 billion in 2025 and is forecast to attain USD 42.93 billion by 2030, advancing at an 11.47% CAGR. Heightened attack sophistication, the rise of ransomware-as-a-service, and compliance mandates such as software bill-of-materials rules are accelerating enterprise investment in comprehensive, cloud-centric defenses. Organizations are re-architecting networks around zero-trust and secure access service edge (SASE) frameworks to protect distributed users and workloads. Vendors able to combine threat intelligence, micro-segmentation, and AI-driven analytics inside a unified platform continue to capture share. Services enjoy the fastest growth because talent shortages push companies toward managed detection and response, while cloud deployment dominates as firms modernize thin branches and extend protection to multi-cloud estates.

Key Report Takeaways

By security offering, Solutions retained 55.80% revenue share in 2024, while Services are projected to grow at 14.80% CAGR through 2030.
By deployment mode, Cloud held 51.80% of the network security market share in 2024 and is forecast to expand at 15.80% CAGR to 2030.
By Enterprise size, Large Enterprises commanded 57.50% share of the network security market size in 2024; SMEs are growing faster at 14.40% CAGR.
By end-user industry, the BFSI segment led with 23.80% of network security market share in 2024, whereas Healthcare will post the highest 15.80% CAGR to 2030.
By geography, North America contributed 35.60% revenue in 2024; Asia-Pacific is advancing at 12.20% CAGR through 2030.

Global Network Security Market Trends and Insights

Driver Impact Analyis

Driver	(≈) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Escalating sophistication of ransomware-as-a-service	+2.8%	North America, Europe	Short term (≤ 2 years)
Rapid cloud migration expanding threat surface	+2.1%	North America, Asia-Pacific	Medium term (2–4 years)
Proliferation of IoT/OT devices needing segmentation	+1.9%	Asia-Pacific, Europe	Long term (≥ 4 years)
Adoption of SASE and thin-branch refreshes	+1.6%	North America, expanding in Asia-Pacific	Medium term (2–4 years)
Mandatory SBOM rules for anomaly detection	+1.4%	North America, Europe	Short term (≤ 2 years)
Telco security-as-a-service for 5G private networks	+1.2%	Asia-Pacific, selective European markets	Long term (≥ 4 years)
Source: Mordor Intelligence

Escalating sophistication of ransomware-as-a-service

Service-based ransomware kits now bundle reconnaissance and lateral-movement tools, forcing companies to build zero-trust network architectures that inspect east-west traffic and apply real-time micro-segmentation. CrowdStrike reported that modern RaaS groups target network vulnerabilities more than endpoints, prompting purchases of analytics that spotlight suspicious internal flows. Arctic Wolf found that 72% of successful ransomware intrusions in 2024 originated from unsegmented networks, reinforcing the demand for behavior-based detection that minimizes blast radius ^{[1]Arctic Wolf Labs, “Ransomware Trends Report 2024,” Arctic Wolf, arcticwolf.com}. The economic fallout extends beyond ransom; boards now budget for resilience investments that maintain uptime even during attack recovery.

Rapid cloud migration expanding threat surface

With 95% of enterprises using at least one public cloud, policy sprawl challenges traditional perimeter tools. Palo Alto Networks observed that 70% of firms cannot enforce uniform rules across hybrid estates, motivating adoption of cloud-native firewalls and SASE overlays . Menlo Security attributes 65% of data-exposure incidents to cloud misconfigurations—an issue addressed by platforms that auto-detect risky settings and provide integrated remediation across workloads. These capabilities differentiate vendors able to deliver elastic protection without infrastructure bottlenecks.

Proliferation of IoT/OT devices requiring network segmentation

Industry 4.0 initiatives connect sensors and controllers that rarely ship with embedded security. Dragos reports 80% of industrial control systems remain vulnerable to network-based exploits, driving orders for OT-aware firewalls and anomaly-detection engines ^{[2]Dragos OT-CERT, “2025 Industrial Control System Vulnerability Analysis,” Dragos, dragos.com}. Cisco integrates ruggedized security appliances that interpret industrial protocols and apply enterprise-class analytics at the edge. Nozomi Networks notes that manufacturers implementing OT segmentation cut incident response times by 60%, underscoring operational ROI

Adoption of SASE driving thin-branch refreshes

Secure Access Service Edge converges networking and security in the cloud, reducing on-site hardware while improving distributed workforce protection. Hughes Network Systems logged a 45% jump in SASE projects during 2024 as businesses sought simpler branch deployments. Palo Alto Networks’ SASE revenue climbed 36% year-over-year, evidencing enterprise confidence in cloud-delivered inspection that scales with remote-access demands. Mid-market firms gain enterprise-grade defenses without standing up dedicated security teams.

Restraint Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Shortage of skilled cyber-security professionals	–1.8%	North America, Europe	Long term (≥ 4 years)
High capex for next-gen ASIC appliances	–1.2%	Global, mid-market enterprises most affected	Medium term (2–4 years)
Performance trade-offs of full TLS 1.3 inspection	–0.9%	Markets with legacy infrastructure	Short term (≤ 2 years)
Vendor API lock-in hindering best-of-breed choice	–0.7%	North America, Europe	Medium term (2–4 years)
Source: Mordor Intelligence

Shortage of skilled cyber-security professionals

ISC2 cites a 4.8 million-person global talent gap, with 90% of employers anticipating staff shortfalls that directly affect protection quality. NIST lists over 663,000 unfilled US cyber roles, inflating salaries for network specialists and pushing companies toward automated platforms and managed detection services. AI-driven monitoring tools that reduce manual tuning gain traction, yet the skill deficit continues to limit rollout speed of complex zero-trust projects

High capex for next-gen ASIC-based appliances

Custom silicon accelerates packet inspection but raises unit cost. TD Securities estimates development expenses for advanced networking ASICs are 40% higher than in 2024, partly due to supply-chain constraints. Cisco’s 400G ASIC program exemplifies multi-billion-dollar outlays that flow into product pricing, prompting mid-market buyers to evaluate software-defined alternatives running on commodity hardware. Longer proof-of-concept cycles can delay purchase decisions, dampening short-term revenue.

Segment Analysis

By Security Offering: Services Accelerate Through Managed Expertise

Solutions retained 55.80% share of the network security market in 2024, but Services are poised for a brisk 14.80% CAGR to 2030. Demand for external expertise arises because threat actors now weaponize AI, forcing enterprises to outsource 24/7 monitoring and incident response. Professional services consultancies win projects designing zero-trust blueprints, while managed security service providers (MSSPs) secure recurring contracts to operate those environments. Cisco doubled security revenue to USD 2.02 billion in Q1 2025 after folding Splunk analytics into its portfolio and layering managed offerings atop the combined stack.

Vendor pricing models are shifting from perpetual licenses to outcome-based subscriptions tied to risk-reduction KPIs, locking in predictable annuities. Baseline tools such as network access control and DDoS protection continue to sell steadily, yet the fastest-rising solution is Zero Trust Network Access, which operates natively in cloud and edge contexts. The network security market benefits as buyers bundle consulting, integration, and ongoing management into a single contract that simplifies budgeting and accountability.

By Deployment Mode: Cloud-Native Architectures Drive Transformation

Cloud deployments commanded 51.80% of the network security market share in 2024 and will compound at 15.80% through 2030 as enterprises retire appliance stacks. Uniform policy enforcement across on-prem, public cloud, and edge requires centralized orchestration rather than siloed firewall rules. The network security market size for cloud controls is projected to expand by USD x billion during the forecast period, reflecting adoption of inspection points embedded in SaaS, PaaS, and container workloads.

Regulatory momentum bolsters the shift: Europe’s NIS2 Directive obligates critical-infrastructure operators to prove consistent protection and reporting, a task simplified by centrally managed cloud security dashboards ^{[3]ENISA, “NIS2 Readiness Survey 2025,” European Union Agency for Cybersecurity, enisa.europa.eu}. Even air-gapped industrial sites now employ hybrid models where analytics and patch intelligence are delivered from the cloud while data planes remain on site. Palo Alto Networks’ 36% jump in cloud security revenue underscores market confidence that virtualized enforcement can equal or surpass bespoke hardware performance.

By Enterprise Size: SMEs Embrace Democratized Security

Large Enterprises represented 57.50% of 2024 revenue, yet SMEs will outpace them with a 14.40% CAGR as democratized defenses become affordable. Subscription-priced SASE and AI-driven firewalls let small firms tap the same threat feeds used by global banks without buying data centers. The network security market size for SME solutions is rising in tandem with managed service adoption that offloads complexity and talent acquisition.

Fortinet tailors simplified dashboards and bundled support aimed at sub-1,000-employee organizations, aligning billing to monthly cash flows. While large corporations embark on multi-year zero-trust migrations that require deep professional services, mid-market buyers gravitate to turnkey packages configurable in hours. As higher-end capabilities trickle down, the network security industry gains a broader revenue base and reduces reliance on a handful of marquee accounts.

By End-user Industry: Healthcare Accelerates Digital Protection

BFSI held 23.80% network security market share in 2024, reflecting banks’ long-standing regulatory obligations, but Healthcare will log the fastest 15.80% CAGR through 2030. Clinical digitization, tele-medicine, and connected devices enlarge the attack surface, and ransomware campaigns increasingly target hospitals. Consequently, the network security market size for healthcare controls is anticipated to double over the forecast horizon.

Manufacturing sustains momentum as Industry 4.0 converges IT and OT. Segmentation tools that understand Modbus or PROFIBUS traffic safeguard uptime without interrupting production. Government, defense, and telecom segments remain heavy spenders, the latter embedding security into 5G core networks and private wireless deployments to meet ultra-low-latency demands.

Geography Analysis

North America generated 35.60% of network security market revenue in 2024, underpinned by stringent mandates such as the SEC’s cyber-incident disclosure rule and a mature ecosystem of vendors and MSSPs. Spending is concentrated among Fortune 1000 enterprises that refresh architectures around zero-trust and observability convergence. The region also pilots emerging technologies, including AI-based anomaly scoring and post-quantum cryptography inspection.

Asia-Pacific will register a 12.20% CAGR through 2030, the fastest worldwide. Public cloud uptake, e-commerce expansion, and manufacturing digitalization create fertile ground for modern defenses. Singapore demonstrates the pattern: its cybersecurity outlays are projected to reach USD 2 billion to USD 2.5 billion by 2026, buoyed by a national strategy that funds workforce development and sector-specific guidelines. Local telcos bundle security with 5G private networks, letting factories adopt automation without sacrificing safety.

Europe delivers steady growth anchored by the NIS2 Directive, which broadens coverage to 18 critical sectors and imposes stiff fines for non-compliance. ENISA states security budgets now account for 9% of total IT expenditures, with median spending per organization doubling compared with 2023. Cross-border data residency and sovereignty concerns boost demand for solutions that support regional cloud zones while offering harmonized dashboards for multinationals.

Competitive Landscape

The network security market is moderately consolidated: leading infrastructure vendors consolidate capabilities via multi-billion-dollar deals, while focused specialists innovate in AI detection and OT protection. Cisco’s USD 28 billion acquisition of Splunk merges network telemetry with observability analytics, positioning the company to deliver an end-to-end detection stack that spans packets, logs, and cloud events. Palo Alto Networks continues an active MandA cadence, from Protect AI to IBM QRadar assets, stitching together machine-learning defenses with SIEM workflows.

MSSPs, telecom operators, and hyperscale clouds intensify rivalry by embedding security into connectivity bundles, appealing to customers who prefer single-invoice solutions. Industrial OT vendors such as Nozomi Networks and Claroty carve niches by decoding proprietary control-system protocols and offering deterministic anomaly detection suited to plant-floor latency constraints. The market recorded 362 cybersecurity acquisitions worth USD 49.9 billion in 2024, underscoring the premium placed on platform breadth and cross-domain analytics.

Differentiation now hinges on automation depth and ecosystem openness. Buyers favor vendors that expose APIs for threat-intel sharing yet avoid lock-in through standards-based policy orchestration. As the zero-trust paradigm matures, partnerships between identity, endpoint, and network providers multiply, aiming to supply a cohesive user-to-app enforcement chain without duplicative agents or consoles. Vendors that deliver measurable risk reduction with minimal operational friction will out-pace slower appliance-centric peers.

Network Security Industry Leaders

Check Point Software Technologies Ltd.
Cisco Systems, Inc.
Fortinet, Inc.
Palo Alto Networks, Inc.
Juniper Networks, Inc.
*Disclaimer: Major Players sorted in no particular order

Network Security Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

June 2025: Cisco introduced network security infrastructure tailored for Agentic AI workloads, adding safeguards for autonomous systems across hybrid clouds.
June 2025: Keysight Technologies launched AppFusion, allowing third-party security tools from Forescout, Instrumentix, and Nozomi Networks to integrate directly with its network packet brokers, streamlining NetOps/SecOps costs.
March 2025: Verizon Business unveiled Trusted Connection, a network-native Zero Trust Network Access service embedded in customer networks for continuous device, user, and application verification.
February 2025: NTT DATA and Palo Alto Networks rolled out a managed private 5G security service uniting next-generation firewall functions with industrial network design expertise.

Table of Contents for Network Security Industry Report

1. INTRODUCTION

1.1 Market Definition and Study Assumptions
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Escalating sophistication of ransomware-as-a-service (RaaS) eco-system
- 4.2.2 Rapid cloud migration expanding threat surface
- 4.2.3 Proliferation of IoT/OT devices requiring network segmentation
- 4.2.4 Adoption of SASE driving thin-branch security refreshes
- 4.2.5 Mandatory software bill-of-materials (SBOM) rules pushing network anomaly detection
- 4.2.6 Telcos launching security-as-a-service bundles for 5G private networks
4.3 Market Restraints
- 4.3.1 Shortage of skilled cyber-security professionals
- 4.3.2 High capex for next-gen ASIC-based appliances
- 4.3.3 Performance trade-offs of full TLS 1.3 inspection on legacy gear
- 4.3.4 Vendor API lock-in impeding best-of-breed strategy adoption
4.4 Value / Supply-Chain Analysis
4.5 Evaluation of Critical Regulatory Framework
4.6 Impact Assessment of Key Stakeholders
4.7 Technological Outlook
4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes
- 4.8.5 Intensity of Competitive Rivalry
4.9 Impact of Macro-economic Factors

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Security Offering
- 5.1.1 Solutions
- 5.1.1.1 Network Firewall
- 5.1.1.2 Intrusion Detection and Prevention Systems (IDPS)
- 5.1.1.3 Secure Web Gateway
- 5.1.1.4 Unified Threat Management (UTM)
- 5.1.1.5 Distributed Denial-of-Service (DDoS) Protection
- 5.1.1.6 Zero Trust Network Access (ZTNA)
- 5.1.1.7 Network Access Control (NAC)
- 5.1.1.8 Other Solutions
- 5.1.2 Services
- 5.1.2.1 Professional Services
- 5.1.2.2 Managed Security Services
5.2 By Deployment Mode
- 5.2.1 Cloud
- 5.2.2 On-Premises
- 5.2.3 Hybrid
5.3 By Enterprise Size
- 5.3.1 Small and Medium Enterprises (SMEs)
- 5.3.2 Large Enterprises
5.4 By End-user Industry
- 5.4.1 IT and Telecom
- 5.4.2 BFSI
- 5.4.3 Government and Defense
- 5.4.4 Healthcare
- 5.4.5 Manufacturing
- 5.4.6 Retail and E-commerce
- 5.4.7 Energy and Utilities
- 5.4.8 Other End-users
5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Argentina
- 5.5.2.3 Rest of South America
- 5.5.3 Europe
- 5.5.3.1 Germany
- 5.5.3.2 United Kingdom
- 5.5.3.3 France
- 5.5.3.4 Italy
- 5.5.3.5 Spain
- 5.5.3.6 Russia
- 5.5.3.7 Rest of Europe
- 5.5.4 Asia-Pacific
- 5.5.4.1 China
- 5.5.4.2 Japan
- 5.5.4.3 India
- 5.5.4.4 South Korea
- 5.5.4.5 Australia and New Zealand
- 5.5.4.6 Rest of Asia-Pacific
- 5.5.5 Middle East and Africa
- 5.5.5.1 Middle East
- 5.5.5.1.1 Saudi Arabia
- 5.5.5.1.2 UAE
- 5.5.5.1.3 Turkey
- 5.5.5.1.4 Rest of Middle East
- 5.5.5.2 Africa
- 5.5.5.2.1 South Africa
- 5.5.5.2.2 Nigeria
- 5.5.5.2.3 Egypt
- 5.5.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
- 6.4.1 Cisco Systems, Inc.
- 6.4.2 Palo Alto Networks, Inc.
- 6.4.3 Fortinet, Inc.
- 6.4.4 Check Point Software Technologies Ltd.
- 6.4.5 Juniper Networks, Inc.
- 6.4.6 Trend Micro Incorporated
- 6.4.7 Cloudflare, Inc.
- 6.4.8 Zscaler, Inc.
- 6.4.9 Sophos Limited
- 6.4.10 Barracuda Networks, Inc.
- 6.4.11 WatchGuard Technologies, Inc.
- 6.4.12 F5, Inc.
- 6.4.13 Arista Networks, Inc. (Awake Security)
- 6.4.14 Akamai Technologies, Inc.
- 6.4.15 Forcepoint LLC
- 6.4.16 Ivanti Software, Inc. (Pulse Secure)
- 6.4.17 Dell Technologies Inc. (SonicWall)
- 6.4.18 Hewlett Packard Enterprise Development LP (Aruba)
- 6.4.19 Broadcom Inc. (Symantec Enterprise)
- 6.4.20 Proofpoint, Inc.
- 6.4.21 CrowdStrike Holdings, Inc.
- 6.4.22 Elastic N.V. (Endgame)
- 6.4.23 Darktrace plc
- 6.4.24 Nozomi Networks, Inc.
- 6.4.25 Radware Ltd.

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

7.1 White-space and Unmet-need Assessment

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Global Network Security Market Report Scope

Network security consists of the policies, processes and practices adopted to prevent, detect and monitor unauthorized access, misuse, modification, or denial of a computer network and network-accessible resources.

The network security market is segmented by type (solution, services), by deployment (cloud, on-premises), by enterprises (SMEs, large enterprises), by end-user (IT and telecom, BFSI, government and defense, healthcare, manufacturing, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Security Offering	Solutions	Network Firewall
		Intrusion Detection and Prevention Systems (IDPS)
		Secure Web Gateway
		Unified Threat Management (UTM)
		Distributed Denial-of-Service (DDoS) Protection
		Zero Trust Network Access (ZTNA)
		Network Access Control (NAC)
		Other Solutions

	Services	Professional Services
		Managed Security Services
By Deployment Mode	Cloud
	On-Premises
	Hybrid
By Enterprise Size	Small and Medium Enterprises (SMEs)
	Large Enterprises
By End-user Industry	IT and Telecom
	BFSI
	Government and Defense
	Healthcare
	Manufacturing
	Retail and E-commerce
	Energy and Utilities
	Other End-users

By Geography	North America	United States
		Canada
		Mexico

	South America	Brazil
		Argentina
		Rest of South America

	Europe	Germany
		United Kingdom
		France
		Italy
		Spain
		Russia
		Rest of Europe

	Asia-Pacific	China
		Japan
		India
		South Korea
		Australia and New Zealand
		Rest of Asia-Pacific

	Middle East and Africa	Middle East	Saudi Arabia
			UAE
			Turkey
			Rest of Middle East

		Africa	South Africa
			Nigeria
			Egypt
			Rest of Africa

By Security Offering

Solutions	Network Firewall
	Intrusion Detection and Prevention Systems (IDPS)
	Secure Web Gateway
	Unified Threat Management (UTM)
	Distributed Denial-of-Service (DDoS) Protection
	Zero Trust Network Access (ZTNA)
	Network Access Control (NAC)
	Other Solutions
Services	Professional Services
	Managed Security Services

By Deployment Mode

Cloud

On-Premises

Hybrid

By Enterprise Size

Small and Medium Enterprises (SMEs)

Large Enterprises

By End-user Industry

IT and Telecom

BFSI

Government and Defense

Healthcare

Manufacturing

Retail and E-commerce

Energy and Utilities

Other End-users

By Geography

North America	United States
	Canada
	Mexico
South America	Brazil
	Argentina
	Rest of South America
Europe	Germany
	United Kingdom
	France
	Italy
	Spain
	Russia
	Rest of Europe
Asia-Pacific	China
	Japan
	India
	South Korea
	Australia and New Zealand
	Rest of Asia-Pacific

Middle East and Africa	Middle East	Saudi Arabia
		UAE
		Turkey
		Rest of Middle East

	Africa	South Africa
		Nigeria
		Egypt
		Rest of Africa

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Key Questions Answered in the Report

What is the current size of the network security market and how fast is it growing?

The market is valued at USD 24.95 billion in 2025 and is projected to reach USD 42.93 billion by 2030, registering an 11.47% CAGR.

Why are services growing faster than products in network security?

A global shortage of 4.8 million cybersecurity professionals is pushing enterprises to outsource 24/7 monitoring and incident response, driving the Services segment’s 14.80% CAGR.

How important is cloud deployment for future network-security strategies?

Cloud deployments already account for 51.80% market share and will expand at 15.80% CAGR as organizations adopt SASE to secure hybrid and multi-cloud estates.

Which industry vertical is expected to grow the fastest?

Healthcare is forecast to post a 15.80% CAGR because ransomware attacks and digital-health initiatives demand stronger network defenses.

What geographic region offers the highest growth potential?

Asia-Pacific is set to advance at 12.20% CAGR through 2030, propelled by rapid digitization and government-backed cyber-readiness programs.

Page last updated on: June 18, 2025