Dell’Oro Group’s latest five-year forecast (2021-2025) for the Network and Security and Data Center Appliance (NSDCA) market said that the industry is about to bounce back from the COVID-19 pandemic.
The outfit said that the worst of the market turbulence appears behind us. Increased vaccination rates–albeit not fast enough for some countries and regions–have led to an unwinding of lockdown mandates and boosted economic activity. In addition, economic stimuli from central governments have provided additional market tailwinds.
The company said that after an anaemic 2020, where revenue growth was just three percent year-over-year, there will be a return to low double-digit growth in 2021 and 2022, and then high single-digit after that through the end of our forecast window (2025).
“This revenue growth slightly exceeds the historical revenue growth rate, averaging eight per cent, due to the pent-up demand created during 2020, the recent economic stimuli, and the continued high priority placed on security, creating favourable market conditions”, the company said.
Products sold in a cloud-delivered SaaS (Software-as-a-Service) form factor will grow at a 21 percent compound annual growth rate (CAGR), reaching nearly $10 billion in 2025. In contrast, the roughly $12 billion physical appliance market is anticipated to grow nearly three percent CAGR by 2025.
