Network Security Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Deployment (Cloud-based, On-premises), By Enterprise Size, By Industry Vertical, By Region, And Segment Forecasts, 2025 - 2033

Network Security Market Summary

The rising incidents of unsecured devices hampering organizational networks and affecting privacy laws demand that businesses invest significant costs and resources to ensure network security. It provides a higher level of authorization, authentication, and compliance policies across the users’ network. Furthermore, network security solutions also enable users to instantly identify and block devices, endpoints, and users from forming unwanted connections. Thus, network security solutions offer higher protection against security breaches, safeguard critical information, help minimize malicious activities, and provide greater visibility on the security positioning of connected devices.

The growing adoption of IoT devices, web applications, and industrial software across verticals such as IT and telecommunication, BFSI, and healthcare contains highly sensitive information related to vendors, customers, and employees. These organizations need to maintain strict security regulatory compliance and verification guidelines and spend a significant amount to install network security solutions. For instance, in June 2023, Fortinet, a networking and security solutions company, announced that its Secure SD-WAN solution was adopted by 11 renowned managed security service providers named as a solution by STC, Claro Empresas, KT Corporation, Globe Business, Kyndryl, InfiniVAN, Inc., SPTel, 11:11 Systems, Sify Technologies, Tata Teleservices, and Neurosoft S.A. to provide superior user experience and drive better security outcomes without compromising security positioning.

The rapid transition to cloud-based infrastructure is another significant driver of the network security market. As organizations migrate their operations to the cloud, they face new challenges in securing their data and applications. Cloud environments introduce multiple layers of complexity, particularly when organizations adopt hybrid and multi-cloud models. These environments create multiple points of entry that must be protected against unauthorized access and cyber threats. In response, cloud service providers and organizations leverage cloud-native security technologies, such as cloud firewalls, encryption, secure web gateways, and identity and access management (IAM) systems, to safeguard their digital assets.

Key companies in the market are undertaking various strategic initiatives, including new product launches, mergers and acquisitions, and partnerships to offer advanced solutions and service offerings. For instance, in May 2024, Palo Alto Networks, Inc. partnered with IBM Corporation to deliver AI-driven security solutions to customers. Palo Alto Networks acquired IBM’s QRadar Cloud-based assets as part of this collaboration. The two companies will work together to transition QRadar Cloud-based clients to Cortex XSIAM, Palo Alto Networks’ next-generation security operations platform, offering advanced AI-powered threat protection with support from 3,000 pre-configured detectors.

Component Insights

The solution segment dominated the network security market with a market share of 72.6% in 2024. The solution segment comprises network access control, unified threat defense, data loss prevention, IDS/IPS, firewall, antivirus, wireless security, DDoS, and VPN design to provide dynamic network security functionalities and high-performance capabilities. These advanced network security solutions offer network security, endpoint security, and web-based application security, enabling superior visibility, representation of real-time threats, and identity and access management across the users’ network. These are among the key factors anticipated to drive the growth of the solution segment in the market.

The services segment is projected to grow significantly from 2025 to 2033. Network services include deployment, maintenance, customer support, training, and consultation services. The rising demand for network security software, devices, and infrastructures is aimed at driving the service segments for an extended period, owing to the regular need for license renewal, support, and maintenance and customer support requirements. These are among the key factors anticipated to drive the market's growth of the service segment.

Deployment Insights

The cloud-based segment dominated the network security market in 2024. Cloud-based network security is primarily defined as a pay-per-use or subscription model. It allows organizations to utilize advanced network security solutions from the cloud infrastructure. Cloud-based network security offers a cost-effective and flexible way for organizations to ensure network security depending on demand, usage, and buying capabilities. Thus, the following factors will drive the cloud-based network security segment over the forecast period.

The on-premises segment is projected to grow significantly from 2025 to 2033. On-premise network security provides an in-house solution where an organization can maintain its network’s security with greater flexibility, depending upon its business goals, focus areas, demand, and customized security requirements. It also provides complete control over network security solutions. Thus, the following factors are anticipated to drive the growth of the on-premise segment in the market.

Enterprise Size Insights

The large enterprises segment dominated the network security market in 2024. The growing incidences of data theft, cyberattacks, and security breaches due to the rapid use of connected devices, remote work cultures, and application of unsecured networks to access organizational data are among the key factors driving cyber attackers toward large organizations such as IT companies, banking and financial institutions, healthcare businesses, and government organizations. Therefore, ensuring the safety and confidentiality of organizational networks is becoming a highly important aspect within large organizations.

The small and medium-sized enterprises segment is projected to be the fastest-growing segment from 2025 to 2033. The growth of smart homes and connected ecosystems propels the demand for domestic service robots integrated with cloud platforms. Robotic vacuum cleaners, lawnmowers, and home assistants are increasingly linked to cloud environments where they receive software updates, sync schedules across devices, and interact with broader smart home infrastructures. For consumers, this means greater convenience, continuous improvements to functionality, and the ability to manage their robots remotely via mobile apps or voice interfaces. Network security allows for detailed usage data collection for manufacturers and developers, which supports product improvements, predictive maintenance, and customer support automation.

Industry Vertical Insights

The BFSI segment dominated the network security market with a market share of over 20.0% in 2024. The banking and financial industries constantly witness higher risks of cybersecurity breaches, data theft, network hijackings, and device compromises. Meanwhile, these industries are significantly expanding their IT spending on the latest technologies, web-based applications, and IoT devices, making them highly vulnerable to security breaches. Thus, the demand for network security solutions, including network access control, Unified Threat Defense, Data Loss Prevention, IDS/IPS, Firewall, and antivirus solutions, is rapidly growing among banking and financial services organizations.

The IT and telecommunication segment is projected to be the fastest-growing segment from 2025 to 2033. The IT and Telecommunication sectors are witnessing a significant surge in data security breaches and cyberattacks owing to the availability of large customer data, the sharing of sensitive data through large networks, rapid use of digital technologies, and increased application of connected devices. Furthermore, the rising security concerns and growing awareness among organizations are aimed at driving the demand for network security solutions among the IT and telecommunications industries.

Regional Insights

North America dominated the network security market with a market share of 35.9% in 2024. The market is anticipated to grow due to the growing demand for network security solutions and services among key end-use industries, including BFSI, Government, Healthcare, Education, IT, and Telecom. Data theft and cybercriminals are constantly targeting these industries in the region to gain access to sensitive organizational networks and devices, compromising exorbitant organizational and personal data. These are the primary factors aimed at driving the North American market growth.

U.S. Network Security Trends

The U.S. network security industry is projected to grow considerably during the forecast period. The expansion of cloud computing across enterprises and government agencies in the U.S. drives the growth of cloud-native network security solutions. Companies are deploying containerized applications across multi-cloud environments, requiring scalable and dynamic security measures that adapt to fluctuating workloads. Network security in the cloud involves securing virtual networks, implementing micro-segmentation, and ensuring secure API communications, which are now essential components of enterprise security strategies. The shift toward DevSecOps and continuous security monitoring in cloud development pipelines further reinforces this demand.

Europe Network Security Trends

The network security industry in Europe is expected to grow during the forecast period. Another important factor is the strong emphasis on cybersecurity skill development and public-private collaboration in Europe. National cybersecurity centers and EU-funded initiatives foster innovation in threat detection, cryptographic protocols, and real-time response systems. Local cybersecurity startups also contribute to the competitive landscape by offering niche solutions tailored to regional compliance and threat environments. The presence of multinational security firms and partnerships with global technology providers ensures that the European market has access to cutting-edge tools and expertise, further supporting market growth.

The network security industry in the UK is expected to grow during the forecast period. The widespread adoption of hybrid and remote working models has intensified the need for secure network access across the UK enterprise landscape. As employees connect from various locations and devices, organizations are turning to solutions such as Zero Trust Network Access (ZTNA), Secure Access Service Edge (SASE), and virtual private networks (VPNs) to enforce access controls and protect data in transit. The rise in personal devices and home Wi-Fi networks introduces new vulnerabilities, requiring real-time monitoring and endpoint protection. These developments have created a surge in demand for integrated network security platforms capable of managing diverse and decentralized IT environments.

Asia Pacific Network Security Trends

The Asia Pacific network security industry is expected to be the fastest-growing segment, with a CAGR of 15.2% over the forecast period. The rising adoption of advanced technologies, including IoT-connected devices in major end-use industries, such as IT and Telecommunication, healthcare, BFSI, retail, manufacturing, and others, along with the growing regulatory policies and security compliance to safeguard customer data in BFSI and IT sectors is driving the demand for network security solutions in Asia Pacific. Furthermore, the significantly growing industrial infrastructure, large customer base, and rising awareness among organizations towards adopting network security solutions are anticipated to boost the adoption of network security solutions in the Asia Pacific region.

The network security industry in China is projected to grow during the forecast period. The China network security market is witnessing rapid growth, largely driven by the country's aggressive digital transformation efforts and the increasing complexity of cyber threats. As China advances in cloud computing, 5G deployment, artificial intelligence, and smart cities, its digital infrastructure becomes more extensive and complex, creating a broader attack surface for cybercriminals and state-sponsored actors. In response, the public and private sectors are investing significantly in securing network perimeters, internal communications, and cloud-based operations. This heightened focus on cybersecurity is particularly evident among financial institutions, telecom operators, and critical infrastructure providers that form the backbone of China's digital economy.

Key Network Security Company Insights

Some of the key companies operating in the market, Palo Alto Networks and Fortinet, are some of the leading participants in the network security market.

• Palo Alto Networks, Inc. is a cybersecurity company. Palo Alto's network security offering includes its Next‑Generation Firewall (NGFW) platform, Strata, which integrates deep packet inspection, advanced intrusion prevention, and machine-learning-driven threat detection in real-time. These firewalls, available both as hardware (PA-Series) and virtual/cloud-based versions (VM- and CN-Series), are designed to provide unified policy management across on-premises data centers, branch offices, and public cloud environments.

• Fortinet, Inc. is a cybersecurity company. Fortinet achieved prominence with its flagship product, the FortiGate next‑generation firewall, and expanded into a comprehensive security platform. Fortinet has accelerated its growth through Secure Access Service Edge (SASE) and Security Operations (SecOps) offerings. FortiSASE integrates SD‑WAN with cloud‑delivered security services, providing unified access and policy enforcement for hybrid workforces.

Trellix and Rapid7 are some of the emerging market participants in the network security market.

• Trellix is a cybersecurity company specializing in advanced network security solutions. Its offerings include next-generation firewalls, intrusion prevention systems (IPS), secure web gateways, and network traffic analysis tools. Trellix builds on the heritage of FireEye’s threat intelligence and McAfee’s endpoint security, creating a robust architecture against known and unknown threats.

• Rapid7 is a cybersecurity company that offers an innovative approach to network security, vulnerability management, and threat intelligence. One of its flagship offerings is InsightIDR, a cloud-native extended detection and response (XDR) solution that combines network traffic analysis, user behavior analytics, and endpoint detection to detect threats early in the attack chain. Using signature-based and behavioral analytics, this platform enables organizations to identify malicious activities across their networks, such as lateral movement, privilege escalation, and data exfiltration.

Recent Developments

• In April 2025, Proofpoint launched its Prime Threat Protection suite, an integrated solution that unifies email, cloud, and AI-based endpoint protection. This consolidation reduces complexity by orchestrating threat detection, response, and user awareness across all digital channels. Simultaneously, its unified data security offering merges DLP, data security posture management, and insider threat oversight, all powered by AI-driven classification to address the full lifecycle of sensitive data exposure.

• In April 2025, Vodafone Business expanded its partnership with Fortinet to deliver integrated networking and cybersecurity services across more countries in Europe, Asia, and the U.S. This collaboration leverages Fortinet’s advanced software-defined wide area network and FortiSASE cloud-based security solutions to help businesses protect their networks. The services ensure that employees can securely and reliably access work applications from any location, all while offering a unified view of network health, performance dashboards, and customizable reporting tools.

• In April 2025, CrowdStrike partnered with Wipro Limited to enhance next-generation security operations via integrating CrowdStrike Falcon Next-Gen SIEM. This collaboration strengthens Wipro’s CyberShield platform by incorporating Falcon’s advanced capabilities to modernize security operations, streamline complexity, and prevent breaches using AI-driven threat detection and response. With CrowdStrike’s proprietary data embedded directly within the Falcon platform, Wipro can provide accelerated time to value, reduced total cost of ownership (TCO), and significantly improved cybersecurity outcomes.

• In March 2025, Palo Alto Networks, Inc. announced a multi-year partnership in North America to deliver top-tier cybersecurity for the NHL. This collaboration reflects the mutual dedication of Palo Alto Networks and the NHL to uphold strong cybersecurity measures across the League, including within NHL arenas. As part of the agreement, Palo Alto Networks gains exclusive marketing rights and official designations, allowing the company to align its brand with the NHL and engage fans through the League’s extensive marketing platforms, digital presence, and social media channels throughout the partnership.

Network Security Market Report Scope

Global Network Security Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the network security market report based on component, deployment, enterprise size, industry vertical, and region.

• Component Outlook (Revenue, USD Billion, 2021 - 2033)

  • Solution

    • Network Access Control

    • Unified Threat Defense

    • Data Loss Prevention

    • IDS/IPS

    • Firewall

    • Antivirus

    • Others

  • Services

• Deployment Outlook (Revenue, USD Billion, 2021 - 2033)

  • Cloud-based

  • On-premises

• Enterprise Size Outlook (Revenue, USD Billion, 2021 - 2033)

  • Small & Medium Enterprises

  • Large Enterprises

• Industry Vertical Outlook (Revenue, USD Billion, 2021 - 2033)

  • BFSI

  • IT and Telecommunications

  • Retail & E-Commerce

  • Healthcare

  • Education

  • Manufacturing

  • Government

  • Others

• Regional Outlook (Revenue, USD Billion, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa