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Robust Growth in Network Security and Data Center Appliances Market Rising by Nine Percent in 1Q21, According to Dell’Oro Group

June 2021 by Dell’Oro Group

According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the nearly $18 B Network Security and Data Center Appliance market experienced robust growth as the COVID-19 pandemic continued to loosen its grip. However, the new market headwind is the ongoing semiconductor supply crunch that has also ensnared the Network Security and Data Center Appliance market.

“This quarter’s growth reflects increasing enterprise confidence and the need to invest in critical network-based security technologies,” said Mauricio Sanchez, Research Director, Network Security and Data Center Appliances. “While the worst of the pandemic appears behind us, we are tracking the effects of the chip crunch. We estimate an impact of $300 M in 1Q 2021 caused by some product lead times tripling to eighteen weeks.”

Additional highlights from the 1Q 2021 Network Security & Data Center Appliance Quarterly Report:
• Web Application Firewall maintained strong growth by shooting up 27 percent year-over-year (Y/Y), driven by the continued priority to protect Internet-facing web apps.
• Firewall revenue accelerated 14 percent Y/Y. By comparison, a year ago, growth was just three percent.
• Secure Web Gateway/Zero Trust Network Architecture rose 18 percent Y/Y as enterprises continued to focus on moving away from legacy VPN architectures.


About the Report

The Dell’Oro Group Network Security & Data Center Appliance Quarterly Report includes manufacturers’ revenue, unit shipments, and average selling price projections for the Network Security and Application Security & Delivery markets covering the Firewall, Secure Web Gateway/Zero Trust Network Architecture (SWG/ZTNA),
Email Security, Web Application Firewall (WAF), and Application Delivery Controller (ADC) product segments. The report also splits each product segment by form factor: physical appliance, virtual appliance, and software-as-a-service (SaaS).




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