Network Security Revenue Reaches $6.2 Billion in Q1 2025

Network security revenue reached $6.2 billion in the first quarter of 2025, marking a 12% year-over-year increase, announced in a press release by Dell'Oro Group. This growth was largely driven by a 21% surge in the Application Security & Delivery (AS&D) submarket, which includes Web Application Firewalls (WAF) and Application Delivery Controllers (ADCs).

The rise in AS&D revenue is attributed to organizations strengthening their defenses against AI-centric threats by adopting virtual and SaaS-based solutions. Dell'Oro Group noted that virtual ADC revenue increased by 49% year-over-year, while SaaS WAF saw a 21% rise.

The report also highlighted a rebound in firewall revenue, which grew 8% year-over-year, with physical appliances up 5% and virtual firewalls advancing 27%. Meanwhile, Security Service Edge (SSE) revenue climbed 15%, although Secure Web Gateway (SWG) appliance sales declined by 5%, indicating a shift towards SSE suites. Virtual and SaaS-based network security solutions accounted for 78% of new spending.