Firewalls Shake Off Pandemic with Nine Percent Growth in 4Q 2020, According to Dell'Oro Group

Palo Alto Networks New Firewall Leader in 2020 Over Cisco

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Mar 16, 2021, 08:00 ET

REDWOOD CITY, Calif., March 16, 2021 /PRNewswire/ -- 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 $10 B Firewall market reignited as projects postponed during the depths of the COVID-19 pandemic restarted in 4Q 2020.

"Many enterprises postponed Firewall projects at the onset of the pandemic, particularly those employing physical appliances in data centers," said Mauricio Sanchez, Research Director, Network Security and Data Center Appliances. "This depressed the market during most of 2020, but created pent-up demand that we saw loosen in 4Q 2020 as enterprises felt more comfortable investing for the future."

Additional highlights from the 4Q 2020 Network Security & Data Center Appliance Quarterly Report:

Physical Firewall appliance revenue accelerated 8 percent year-over-year (Y/Y) to $2.7 B. By comparison, prior quarterly growth during 2020 ranged between 1 to 3 percent.
Virtual Firewall revenue accelerated 34 percent Y/Y, to $141 M.
For full-year 2020, Palo Alto Networks became the Firewall leader by revenue with 20 percent share. This is the first change in market leadership since Dell'Oro Group coverage of the Firewall market started in 2008.
The $2.5 B Secure Web Gateway and the $1.5 B Web Application Firewall markets continued to aggressively grow in 4Q 2020 with 18 percent and 30 percent Y/Y growth, respectively.

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, Email Security, IDS and IPS, Web Application Firewall, and Application Delivery Controller product segments. The report also splits each product segment by form factor: physical appliance, virtual appliance, and software-as-a-service (SaaS). To purchase this report, please contact us at [email protected].

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit https://www.delloro.com.

SOURCE Dell'Oro Group