Software Defined Security Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Software Defined Security Market Report is Segmented by Component (Software, Services), Deployment Model (On-Premises, Public Cloud and More), Security Type (Network Security, Endpoint Security and More), Organization Size (Small & Medium Enterprises and Large Enterprises), End User (BFSI, Telecommunications & IT and More) and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Software Defined Security Market Size and Share

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Software Defined Security Market Analysis by Mordor Intelligence

The software-defined security market size is estimated at USD 12.9 billion in 2025 and is forecast to more than double to USD 26.91 billion by 2030, advancing at a 15.84% CAGR. Most enterprises are moving away from perimeter-centric controls toward programmable architectures that follow workloads as they shift across data centers, multiple public clouds, and edge locations. Automated policy enforcement shortens incident-response cycles, while zero-trust principles embed continuous verification into everyday network operations. Regulatory deadlines such as the EU Cyber Resilience Act and the NIS2 Directive are converting discretionary spending into mandatory investments. At the same time, the rapid growth of containerized applications forces security teams to embrace granular micro-segmentation and runtime protection that only software-defined approaches can deliver. Together, these forces give the software-defined security market durable, double-digit momentum through the end of the decade. 

Key Report Takeaways

  • By component, software retained 63% of the software defined security market share in 2024; services are projected to expand at a 15.60% CAGR through 2030.
  • By deployment model, public cloud held 39% revenue share in 2024; SaaS-only public cloud is expected to grow at an 18.20% CAGR to 2030. 
  • By security type, network security accounted for 40% of the software defined security market size in 2024, while cloud/container security leads growth at a 24% CAGR. 
  • By organization size, large enterprises commanded 58% share in 2024; small and medium enterprises are forecast to grow at a 13.80% CAGR. 
  • By end user, BFSI led with 24% revenue share in 2024; healthcare is the fastest-growing vertical at a 16.40% CAGR. 
  • By geography, North America captured 38% of revenue in 2024; Asia–Pacific is poised to expand at a 14.90% CAGR through 2030. 

Segment Analysis

By Deployment Model: SaaS-Only Public Cloud Redefines Consumption

Public cloud continues to lead overall penetration, delivering 39% of 2024 revenue. Within that category, the SaaS-only slice is climbing fastest at an 18.20% CAGR. Smaller IT teams in particular prize the instant scaling and rolling updates that cloud-native vendors provide, since no on-premises appliances require patching. Larger enterprises also shift workloads into SaaS nodes to reduce capex and accelerate feature adoption as zero-trust frameworks mature. 

On-premises deployments remain indispensable where sovereignty or latency mandates apply; however, hybrid designs increasingly route outbound traffic through SaaS secure web gateways. Combined, these trends move policy control toward the network edge and favour vendors that architect multi-tenant, elastic backplanes. The transition underscores the broader repositioning of the software defined security market from appliance sales to subscription revenue. 

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Note: Segment shares of all individual segments available upon report purchase

By Security Type: Cloud and Container Protection Becomes the Growth Engine

Network security still represents 40% of 2024 revenue, reflecting legacy firewall refresh cycles and software-defined wide-area network rollouts. The higher-growth story lies in cloud/container security, which will expand at a 24% CAGR through 2030. Development teams containerize monoliths into hundreds of microservices, so runtime controls must adapt in seconds as pods respawn. Continuous image scanning, admission-control hooks, and service-mesh encryption therefore top procurement lists. 

Early adopters increasingly bundle container security with posture-management modules that inventory misconfigurations across AWS, Azure, and Google Cloud. This convergence further blurs lines between workload and configuration security, pushing vendors to integrate cloud-native application protection platforms directly into their broader software defined security market suites. 

By Organization Size: Cloud-Native Delivery Opens the Door for SMEs

Large enterprises accounted for 58% of 2024 spend because distributed footprints demand complex segmentation and 24/7 monitoring. Yet small and medium enterprises will grow faster, at a 13.80% CAGR, as SaaS models democratize advanced capabilities. Subscription dashboards now auto-generate compliance evidence, freeing overstretched IT managers from manual log collection. Vendors also embed low-code policy builders, letting SMEs codify least-privilege rules without scripting knowledge. 

Manufacturing SMEs in APAC illustrate the shift. Rockwell Automation’s 2025 survey found 35% naming cybersecurity as their top operational risk. As they digitize production lines, these firms purchase lightweight, agentless controls that secure both information-technology and operational-technology assets through a unified policy pane.

By End User: Healthcare Investment Rises After Repeated Breaches

BFSI retained leadership at 24% share in 2024 due to stringent data-protection mandates and the systemic importance of payment networks. Healthcare, however, will expand at a 16.40% CAGR, the fastest among tracked verticals. Following the Change Healthcare incident, 94% of hospitals surveyed by the American Hospital Association boosted cybersecurity budgets, prioritizing segmentation of clinical devices and continuous risk scoring of third-party vendors. Software-defined platforms fit these requirements by automating HIPAA audit evidence and dynamically isolating suspect endpoints without disrupting patient care. 

Other sectors—telecommunications, retail, energy, and public services—continue to broaden adoption as 5G rollouts, e-commerce growth, and critical-infrastructure regulation sharpen the need for programmable defenses. Each new use case further expands the total addressable software defined security market. 

Software Defined Security
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Note: Segment shares of all individual segments available upon report purchase

By Component: Services Gain Momentum Amid Software Leadership

The software defined security market size for software platforms remained dominant at USD 8.1 billion in 2024, translating into a 63% revenue share. Yet the services sub-segment is set to advance at a 15.60% CAGR through 2030, outpacing core license growth. Enterprises recognize that policy automation, threat modelling, and infrastructure-as-code disciplines demand skills that internal teams often lack. As a result, managed detection-and-response specialists see surging demand for project staffing, continuous monitoring, and compliance documentation. 

Professional services partners fill this gap by designing zero-trust blueprints, mapping business processes to micro-segmented networks, and coding workflow integrations that orchestrate incident response. Vendors such as Cisco deepened service portfolios when they closed the USD 28 billion Splunk acquisition in March 2025, merging analytics with hands-on advisory offerings. This pairing helps customers rationalize tool sprawl and keep pace with evolving regulations, further cementing the software defined security market’s service opportunity. 

Geography Analysis

North America captured 38% of 2024 revenue, underpinned by decisive federal action. The U.S. Department of Defense allocated USD 504.9 million to DISA cyber operations for fiscal 2025, with a mandate to build zero-trust reference architectures that ripple into contractor ecosystems. Corporate boards mirror that urgency: overall cybersecurity spending in the region grew 15% year over year, buoyed by the White House’s executive orders that require software bills of materials and continuous monitoring across the federal supply chain. [3]U.S. Department of Defense, “Fiscal Year 2025 Budget Estimates,” comptroller.defense.gov

Europe sits in second place but posts healthy acceleration as the software defined security market aligns with sweeping legislation. The Cyber Resilience Act coming into force in December 2027 obliges manufacturers to design products with security baked in from day one. Complementary measures such as the Digital Operational Resilience Act (for finance) and NIS2 (for essential services) extend similar obligations across the economy. Enterprises are therefore converging on programmable policy engines capable of proving compliance in real time to multiple supervisory bodies. [4]European Union, “Cyber Resilience Act,” digital-strategy.ec.europa.eu

Asia–Pacific is the growth frontrunner, set to log a 14.90% CAGR through 2030. Manufacturing heavyweights in China, Japan, and South Korea pursue Industry 4.0 programs that expose operational-technology networks to internet threats. Governments respond with sector-specific frameworks that recommend micro-segmentation and zero-trust, propelling new projects. India’s Digital Personal Data Protection Act similarly raises bars for healthcare and e-commerce operators. Collectively, these moves expand the regional share of the global software defined security market. 

The Middle East, Africa, and South America are emerging adopters. Energy exporters commission secure-by-design refinery control systems, while Brazilian financial regulators publish stringent open-banking security guidelines. Although absolute spend remains lower, high growth rates make these geographies attractive for cloud-native vendors seeking greenfield opportunities. 

Software Defined Security
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Competitive Landscape

The software defined security market is moderately concentrated yet fiercely contested. Established networking players—Palo Alto Networks, Fortinet, Cisco, and Check Point—leverage proprietary ASICs and consolidated operating systems to bundle network, endpoint, and cloud controls under a unified license. Cisco’s 2025 integration of Splunk strengthens its analytics posture, pairing log ingestion with real-time automation hooks. Fortinet’s Security Fabric follows a similar path, anchoring zero-trust edges on homegrown silicon for high-throughput inspection. 

Cloud-native challengers such as Zscaler, CrowdStrike, and Netskope differentiate through multi-tenant architectures that scale instantly without customer hardware. Zscaler’s FY 2025 roadmap emphasizes inline data-loss prevention and direct-to-cloud micro-segmentation. CrowdStrike extends Falcon modules into Kubernetes runtime visibility, translating endpoint telemetry into workload-specific policies. 

Strategic acquisitions accelerate innovation cycles. Sophos’ late-2024 purchase of Secureworks broadens its managed detection portfolio, while Darktrace’s 2025 updates add self-healing network loops and risk-weighted visualization tools. Investors continue to fund point solution start-ups that fill gaps in identity-centric segmentation, cloud permissions management, and operational-technology threat hunting, ensuring a steady inflow of specialized features into broader suites. 

Vendor differentiation now hinges less on raw detection accuracy and more on how seamlessly controls integrate into DevOps pipelines. Open REST APIs, Terraform providers, and workflow orchestration drive buyer preference. Over the forecast period, platformization is expected to consolidate market shares further as enterprises reduce tool sprawl, but ample niche space remains for innovators that address container isolation, machine-to-machine authentication, and post-quantum cryptography readiness.

Software Defined Security Industry Leaders

  1. Palo Alto Networks

  2. Cisco Systems

  3. Fortinet

  4. VMware (Broadcom)

  5. Check Point Software

  6. *Disclaimer: Major Players sorted in no particular order
Software Defined Security Market Concentration
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Recent Industry Developments

  • May 2025: Broadcom posted USD 14.9 billion Q1 2025 revenue, highlighting VMware Cloud Foundation wins in federal and enterprise accounts, underscoring the pivot toward integrated software-defined stacks
  • April 2025: Cisco unveiled Instant Attack Verification and automated XDR forensics at RSAC 2025, alongside a ServiceNow partnership that links security alerts to enterprise risk dashboards
  • April 2025: Darktrace expanded autonomous response features within its Network Detection and Response product and added integrations with Netskope and Zscaler for unified hybrid-work visibility

Table of Contents for Software Defined Security Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 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 Requirement for quicker incident response and policy automation
    • 4.2.2 Rising adoption of multi-cloud and hybrid cloud architectures
    • 4.2.3 Surge in container/Kubernetes security spend
    • 4.2.4 Shift toward zero-trust and SASE convergence (under-reported)
    • 4.2.5 AI-driven threat-hunting reducing dwell time (under-reported)
    • 4.2.6 National cyber-resilience mandates after critical-infrastructure attacks (under-reported)
  • 4.3 Market Restraints
    • 4.3.1 Shortage of DevSecOps talent
    • 4.3.2 Legacy-system interoperability issues
    • 4.3.3 Hidden performance overhead in east-west micro-segmentation (under-reported)
    • 4.3.4 Concentration risk from single-vendor policy controllers (under-reported)
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porters Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitute Products
    • 4.7.5 Intensity of Competitive Rivalry

5. MARKET SIZE & GROWTH FORECASTS (VALUE)

  • 5.1 By Component
    • 5.1.1 Software
    • 5.1.2 Services
  • 5.2 By Deployment Model
    • 5.2.1 On-premises
    • 5.2.2 Public Cloud
    • 5.2.3 Private Cloud
    • 5.2.4 Hybrid Cloud
  • 5.3 By Security Type
    • 5.3.1 Network Security
    • 5.3.2 Endpoint Security
    • 5.3.3 Application Security
    • 5.3.4 Cloud / Container Security
    • 5.3.5 Others
  • 5.4 By Organization Size
    • 5.4.1 Small and Medium Enterprises
    • 5.4.2 Large Enterprises
  • 5.5 By End User
    • 5.5.1 BFSI
    • 5.5.2 Telecommunications and IT
    • 5.5.3 Healthcare
    • 5.5.4 Government and Defense
    • 5.5.5 Retail and eCommerce
    • 5.5.6 Energy and Utilities
    • 5.5.7 Others
  • 5.6 By Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
    • 5.6.2 Europe
    • 5.6.2.1 United Kingdom
    • 5.6.2.2 Germany
    • 5.6.2.3 France
    • 5.6.2.4 Italy
    • 5.6.2.5 Rest of Europe
    • 5.6.3 APAC
    • 5.6.3.1 China
    • 5.6.3.2 Japan
    • 5.6.3.3 India
    • 5.6.3.4 South Korea
    • 5.6.3.5 Rest of APAC
    • 5.6.4 Middle East
    • 5.6.4.1 Israel
    • 5.6.4.2 Saudi Arabia
    • 5.6.4.3 United Arab Emirates
    • 5.6.4.4 Turkey
    • 5.6.4.5 Rest of Middle East
    • 5.6.5 Africa
    • 5.6.5.1 South Africa
    • 5.6.5.2 Egypt
    • 5.6.5.3 Rest of Africa
    • 5.6.6 South America
    • 5.6.6.1 Brazil
    • 5.6.6.2 Argentina
    • 5.6.6.3 Rest of South America

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 Palo Alto Networks
    • 6.4.2 Cisco Systems
    • 6.4.3 Fortinet
    • 6.4.4 Juniper Networks
    • 6.4.5 VMware (Broadcom)
    • 6.4.6 Check Point Software
    • 6.4.7 IBM
    • 6.4.8 Oracle
    • 6.4.9 Microsoft
    • 6.4.10 Trend Micro
    • 6.4.11 Huawei
    • 6.4.12 Sophos
    • 6.4.13 McAfee
    • 6.4.14 Splunk
    • 6.4.15 Illumio
    • 6.4.16 Akamai Technologies
    • 6.4.17 Netskope
    • 6.4.18 Zscaler
    • 6.4.19 Forcepoint
    • 6.4.20 Darktrace
    • 6.4.21 Proofpoint

7. MARKET OPPORTUNITIES & FUTURE OUTLOOK

  • 7.1 White-space and Unmet-Need Assessment
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Global Software Defined Security Market Report Scope

  • Software-defined security enables the implementation of dynamic security in the network through a controller driven by software or an application. Such a security model helps shield several security-related issues, such as network segmentation, threat detection, intrusion alert, and access control, which are regulated and managed by security software. The Software-defined Security Market is segmented by Type (Block, File, Object, and Hyper-converged Infrastructure), Size of Enterprise (Small and Medium Enterprise, and Large Enterprise), End-user Industries (BFSI, Telecom, IT, Government, Other), and Geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
By Component Software
Services
By Deployment Model On-premises
Public Cloud
Private Cloud
Hybrid Cloud
By Security Type Network Security
Endpoint Security
Application Security
Cloud / Container Security
Others
By Organization Size Small and Medium Enterprises
Large Enterprises
By End User BFSI
Telecommunications and IT
Healthcare
Government and Defense
Retail and eCommerce
Energy and Utilities
Others
By Geography North America United States
Canada
Mexico
Europe United Kingdom
Germany
France
Italy
Rest of Europe
APAC China
Japan
India
South Korea
Rest of APAC
Middle East Israel
Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Egypt
Rest of Africa
South America Brazil
Argentina
Rest of South America
By Component
Software
Services
By Deployment Model
On-premises
Public Cloud
Private Cloud
Hybrid Cloud
By Security Type
Network Security
Endpoint Security
Application Security
Cloud / Container Security
Others
By Organization Size
Small and Medium Enterprises
Large Enterprises
By End User
BFSI
Telecommunications and IT
Healthcare
Government and Defense
Retail and eCommerce
Energy and Utilities
Others
By Geography
North America United States
Canada
Mexico
Europe United Kingdom
Germany
France
Italy
Rest of Europe
APAC China
Japan
India
South Korea
Rest of APAC
Middle East Israel
Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Egypt
Rest of Africa
South America Brazil
Argentina
Rest of South America
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Key Questions Answered in the Report

What is the current size of the software defined security market?

It is valued at USD 12.9 billion in 2025 and is projected to reach USD 26.91 billion by 2030.

Which component segment grows fastest?

Services, expanding at a 15.60% CAGR as firms seek external expertise to operationalize zero-trust and multi-cloud policies.

Why is Asia–Pacific the fastest-growing region?

Manufacturing digitalization, national cyber-security strategies, and rapid cloud adoption lift regional demand, driving a 14.90% CAGR.

How does zero-trust architecture influence purchasing decisions?

It requires continuous verification and granular segmentation, both of which favor programmable security platforms over traditional appliances.

What skills gap challenges deployment?

A shortage of DevSecOps professionals raises project costs and slows rollouts, prompting many organizations to hire managed service providers.

Which vertical is expected to see the highest growth through 2030?

Healthcare, at a 16.40% CAGR, as hospitals harden defenses after high-profile breaches.

Software Defined Security Market Report Snapshots