Sluggish High-End Firewall Sales in 3Q 2023 Weigh Down Network Security Market, According to Dell'Oro Group
Robust Enterprise Sales Keep Palo Alto Networks at Number One for Twelfth Consecutive Quarter
REDWOOD CITY, Calif., Dec. 5, 2023 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the $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. Offsetting the decline was strong double-digit growth in the $5 billion midrange firewall market and the $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 midrage firewalls which helped weather the storm," added Sanchez.
Additional highlights from the 3Q 2023 Network Security Quarterly Report:
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SOURCE Dell'Oro Group