According to market information firm Dell’Oro Group, the US$4 billion market for high-end firewalls suffered its third consecutive quarter of year-on-year (Y/Y) declines, which brought down the entire network security market to single-digit Y/Y revenue growth after eleven straight quarters of double-digit growth.
However there was strong double-digit growth in the US$5 billion midrange firewall market and the US$1 billion virtual firewall market.
“Across many technology markets we track, whether security, networking, or servers, we saw a substantial jump in investment by services providers in the year or two following the worst of the pandemic in 2020, which led to massive technology vendor backlogs,” said Mauricio Sanchez, Sr. research director, enterprise networking and security at Dell’Oro Group.
“All that gear has finally been delivered in the past year, and service providers are now suffering indigestion to deploy. Fortunately, enterprise spending remained robust in midrange firewalls which helped weather the storm.”
