Cloud-driven security market set to reach $38B by 2029

A Dell’Oro Group report forecasts 10% annual growth for the global network security market, which is expected to reach $38 billion by 2029, Security Boulevard reports.

The growth is being driven by cloud-first security approaches, hybrid work models, and artificial intelligence-powered solutions, according to the report, which pointed to cloud security as the greatest driver. The sector is expected to account for over half of all market revenue by 2026 as enterprises increasingly shift away from traditional hardware-based security.

Virtual firewalls, security service edge, and web application firewalls were identified as key areas of growth, with virtual firewalls projected to expand by 15% annually. Meanwhile, SSE integrating cloud access security brokers, zero-trust network access, and secure web gateways is gaining interest as businesses replace traditional perimeter-based security with unified, cloud-native models. AI-powered security is also improving threat detection with its ability to reduce false positives and automate tasks. Amid the benefits, transitioning to cloud security also presents challenges including hidden costs such as cloud infrastructure expenses and metered pricing models that can lead to unexpected fees.