Omdia: The cybersecurity market is expected to grow by 5.1% compared to the fourth quarter of 2024.

According to Omdia's estimates and forecasts for the 2029 market, the network security market in the fourth quarter of 2024 grew by 5.1% year-on-year, with a full-year growth of 3.1%. Driven by stable demand for security equipment and increased adoption of software and SASE components, Palo Alto Networks maintained its market leadership in 2024 with a 28.4% share. Omdia's report covers key segments of the network security market, including integrated security appliances, security routers, SSL VPN gateways, VPN and firewall software, and network-based IDS/IPS. Ketaki Borade, Omdia's Senior Analyst for Infrastructure Security, said, "Palo Alto Networks, Fortinet, Cisco, and Check Point continue to lead the network security market, each maintaining double-digit shares over the past five years. The increasing popularity of SASE architecture is driving network security growth, accelerating software integration. As the threat landscape evolves, next-generation firewalls must seamlessly integrate with other security solutions. Artificial intelligence and machine learning (ML) will continue to play a key role in achieving more predictive and proactive security approaches." Rik Turner, Omdia's Senior Analyst for Network Security, added, "The dominance of the top four firewall vendors not only clearly indicates a mature market, but also suggests that if they position themselves well in the still early-stage SASE market, they may strengthen their control of network security in the coming years. Two of the four companies (Check Point and Cisco) have abandoned internal cloud-native security (CNAPP) development and have opted for OEM/white-label products from Wiz, indicating their intention to compete with market leader Palo Alto Networks. Their focus on SASE aligns with their firewall expertise and the rapid expansion of SaaS usage in enterprises." The chart illustrates the ranking of major vendors in the entire network security market over the past five years. Palo Alto has maintained its top position since 2021 with its platform-based strategy emphasizing AI-driven product integration. Meanwhile, Cisco has risen to third place, and Fortinet, with its clear goals for secure networks, unified SASE, and security operations, has jumped to second place. With 25% of FortiGate devices set for upgrades soon, Fortinet's revenue could soar in the next two years. Looking ahead, Borade predicts strong growth for firewall vendors due to upcoming refresh cycles over the next two years. "However, compared to last year, all four top vendors have lowered their guidance for 2025, indicating concerns about market growth." Factors contributing to this cautious outlook may include cost-cutting by enterprises, prioritization of core services, and shifts towards cloud and SASE solutions. This transition could affect demand for traditional hardware firewalls, while software firewalls and firewall-as-a-platform solutions may see development. Overall, Omdia predicts that from 2024 to 2029, the annual compound growth rate for the entire network security market will be 2.8%, with the annual compound growth rate for firewalls expected to be 5.0% during the same period. Borade concludes, "While the market is still growing, increased product integration and adoption of SASE will continue to impact market development."