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US Software-Defined Security Market

ID: MRFR/ICT/13420-HCR
100 Pages
Garvit Vyas
October 2025

US Software Defined Security Market Research Report: By Component (Solutions, Services), By Enforcement Point (Network Security Gateway, Others), By Deployment Mode (Cloud, On-Premise) and By End-Users (Telecom, Cloud Service Providers) - Forecast to 2035

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US Software-Defined Security Market Summary

As per MRFR analysis, the US software-defined security market size was estimated at 3000.0 USD Million in 2024. The US software defined-security market is projected to grow from 3835.8 USD Million in 2025 to 44800.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 27.86% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US The software-defined security market is experiencing robust growth driven by technological advancements and evolving security needs..

  • The largest segment in the US software defined-security market is cloud security solutions, reflecting a shift towards digital transformation.
  • AI and machine learning integration is rapidly becoming a focal point, enhancing threat detection and response capabilities.
  • Regulatory compliance remains a critical concern, influencing security strategies across various industries.
  • Rising cybersecurity threats and increased regulatory pressures are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 3000.0 (USD Million)
2035 Market Size 44800.0 (USD Million)

Major Players

Palo Alto Networks (US), Fortinet (US), Cisco Systems (US), Check Point Software Technologies (IL), VMware (US), Zscaler (US), McAfee (US), Trend Micro (JP), SonicWall (US)

US Software-Defined Security Market Trends

The The software-defined security market is experiencing a transformative phase., driven by the increasing need for advanced security solutions in a rapidly evolving digital landscape. Organizations are increasingly adopting software defined-security to enhance their cybersecurity posture, as traditional security measures often fall short in addressing sophisticated threats. This shift is largely influenced by the growing complexity of IT environments, where cloud computing, mobile devices, and IoT technologies are prevalent. As a result, businesses are seeking solutions that offer flexibility, scalability, and real-time threat detection capabilities. Furthermore, regulatory compliance requirements are pushing organizations to invest in more robust security frameworks, thereby propelling the demand for software defined-security solutions. In addition, the The software-defined security market is experiencing a surge in innovation., with vendors continuously developing new technologies to address emerging threats. The integration of artificial intelligence and machine learning into security solutions is becoming increasingly common, enabling organizations to automate threat detection and response processes. This trend not only enhances operational efficiency but also reduces the time taken to mitigate potential risks. As the market evolves, collaboration between technology providers and enterprises is likely to intensify, fostering the development of tailored security solutions that meet specific organizational needs. Overall, the software defined-security market is poised for significant growth as businesses prioritize cybersecurity in their strategic initiatives.

Increased Adoption of Cloud Security Solutions

Organizations are increasingly turning to cloud-based security solutions to protect their digital assets. This trend is driven by the need for scalable and flexible security measures that can adapt to the dynamic nature of cloud environments. As more businesses migrate to the cloud, the demand for integrated security solutions that can seamlessly operate across various platforms is likely to rise.

Integration of AI and Machine Learning

The incorporation of artificial intelligence and machine learning technologies into security frameworks is becoming more prevalent. These advanced technologies enable organizations to automate threat detection and response, thereby enhancing their ability to combat sophisticated cyber threats. This trend suggests a shift towards proactive security measures that can adapt to evolving attack vectors.

Focus on Regulatory Compliance

With the increasing complexity of regulatory requirements, organizations are prioritizing compliance in their security strategies. This focus on regulatory adherence is driving investments in software defined-security solutions that can help businesses meet legal obligations while safeguarding sensitive data. As regulations continue to evolve, the demand for compliant security solutions is expected to grow.

US Software-Defined Security Market Drivers

Emergence of IoT Devices

The proliferation of Internet of Things (IoT) devices is significantly impacting the software defined-security market. With an estimated 75 billion IoT devices expected to be in use by 2025, the potential attack surface for cyber threats has expanded dramatically. Organizations are increasingly recognizing the vulnerabilities associated with these devices, which often lack robust security features. As a result, there is a growing demand for software defined-security solutions that can effectively manage and secure IoT ecosystems. This trend suggests that companies will invest in comprehensive security frameworks that encompass IoT devices, thereby driving growth in the software defined-security market. The integration of IoT security measures is likely to become a critical component of overall cybersecurity strategies.

Shift Towards Remote Work

The software defined-security market is being driven by the ongoing shift towards remote work arrangements. As organizations adapt to flexible work environments, the need for secure access to corporate networks and data has become paramount. In 2025, it is projected that remote work will account for approximately 30% of the workforce in the US, necessitating the implementation of software defined-security solutions that can safeguard remote connections. This transition has led to increased investments in virtual private networks (VPNs), secure access service edge (SASE) technologies, and other security measures that ensure data protection regardless of location. Consequently, the The software-defined security market is expected to experience substantial growth. as companies seek to enhance their security posture in a distributed work environment.

Rising Cybersecurity Threats

The software defined-security market is experiencing heightened demand due to the increasing frequency and sophistication of cyber threats. Organizations across various sectors are investing heavily in advanced security solutions to protect sensitive data and maintain operational integrity. In 2025, it is estimated that cybercrime will cost businesses globally over $10 trillion annually, prompting a shift towards software defined-security solutions that offer real-time threat detection and response capabilities. This trend indicates a growing recognition of the need for robust security measures, as companies seek to mitigate risks associated with data breaches and ransomware attacks. The software defined-security market is thus positioned to grow significantly as businesses prioritize cybersecurity in their strategic planning.

Growing Demand for Automation

The software defined-security market is witnessing a surge in demand for automation technologies. As cyber threats become more complex, organizations are seeking solutions that can automate security processes, thereby enhancing efficiency and reducing response times. In 2025, it is anticipated that automated security solutions will account for over 40% of the total security market. This shift towards automation is driven by the need to streamline security operations and minimize human error. Software defined-security solutions that incorporate automation capabilities are increasingly favored, as they enable organizations to respond swiftly to threats and maintain a proactive security posture. This trend suggests that the software defined-security market will continue to evolve, with automation playing a pivotal role in shaping future security strategies.

Increased Regulatory Pressures

The The software-defined security market is shaped by the rising regulatory pressures. that organizations face in the US. With the implementation of stringent data protection laws, such as the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA), companies are compelled to adopt advanced security measures to ensure compliance. Failure to adhere to these regulations can result in substantial fines, which may reach millions of dollars. As a result, organizations are increasingly turning to software defined-security solutions that facilitate compliance through automated monitoring and reporting capabilities. This trend indicates a growing recognition of the importance of regulatory compliance in shaping security strategies, thereby driving demand within the software defined-security market.

Market Segment Insights

By Component: Solutions (Largest) vs. Services (Fastest-Growing)

In the US software defined-security market, the component segment is predominantly driven by solutions, commanding a significant share of the market. These solutions are preferred due to their robustness and the comprehensive security features they offer to organizations of varying sizes. Conversely, the services segment, while smaller, is rapidly gaining traction as businesses recognize the necessity of ongoing support and customization for their security needs. The growth trends for this segment indicate a shifting focus towards service-based offerings, with an increasing number of enterprises opting for managed security services. This rise is fueled by the complexities of evolving cyber threats and the need for specialized expertise. Furthermore, innovations in security technologies are enhancing the appeal of service solutions, positioning them for considerable growth in the coming years.

Solutions (Dominant) vs. Services (Emerging)

Solutions within the US software defined-security market are characterized by their comprehensive capabilities that address a wide array of security challenges. Dominantly positioned, these solutions are instrumental in establishing a firm foundation for organizations aiming to bolster their cybersecurity defenses. On the other hand, services represent an emerging force, reflecting the growing demand for tailored security strategies and expert guidance. This duality signifies a shift, where businesses not only rely on products but also on extensive service offerings. As cyber threats continue to evolve, the ability to customize and adapt security services will be pivotal, ensuring that the service segment becomes increasingly vital for organizational resilience.

By Enforcement Point: Network Security Gateway (Largest) vs. Others (Fastest-Growing)

In the enforcement point segment of the US software defined-security market, Network Security Gateway holds the largest market share, characterized by its robust protection capabilities and broader adoption across enterprises. In contrast, the Others category, which includes emerging solutions and niche offerings, is gaining traction rapidly, capturing significant interest due to their innovative features and adaptability to specific user needs. The growth trends in this segment reflect a shift in focus among businesses towards integrated security solutions, emphasizing the importance of comprehensive threat management. Network Security Gateway continues to benefit from its established reputation, while the Others segment is fueled by advancements in technology, offering unique advantages and catering to a more diverse set of security challenges, thereby enhancing their market positioning.

Network Security Gateway (Dominant) vs. Others (Emerging)

Network Security Gateway represents the cornerstone of enforcement point solutions within the US software defined-security market, catering primarily to large enterprises that require extensive security measures. Its dominance stems from features such as real-time traffic monitoring and integrated threat intelligence, facilitating proactive defense mechanisms. Conversely, the Others segment embodies diverse and emerging solutions, often tailored for specific industries or applications, providing flexibility and adaptability. These solutions are rapidly evolving, spurred by demand for specialized features and the increasing awareness of cybersecurity risks. This dynamic landscape fosters innovation, allowing newer entrants to disrupt traditional models and gain market share.

By Deployment Mode: Cloud (Largest) vs. On-Premises (Fastest-Growing)

The deployment mode segment in the US software defined-security market showcases a distinct distribution of share between cloud and on-premises solutions. Cloud deployment continues to dominate due to its scalability, flexibility, and lower upfront costs, making it the preferred choice for many organizations. In contrast, on-premises solutions are gaining traction, primarily among enterprises with stringent data security requirements or regulatory obligations that favor in-house data management. Growth trends in this segment indicate a significant shift towards cloud solutions as organizations increasingly adopt digital transformation strategies. However, on-premises deployments are not far behind, experiencing rapid growth driven by the need for enhanced control and security over sensitive data. The hybrid approach is also rising, combining the benefits of both deployment modes, thus influencing overall market dynamics.

Deployment Mode: Cloud (Dominant) vs. On-Premises (Emerging)

Cloud deployment is viewed as the dominant force in the US software defined-security market due to its inherent advantages such as cost-effectiveness, ease of maintenance, and rapid implementation. Organizations prefer cloud solutions for their ability to offer real-time updates and scalability, accommodating the evolving needs of businesses. On the other hand, on-premises deployment is classified as an emerging trend, appealing to entities that prioritize control over their IT environments. These organizations are motivated by compliance and security concerns, thus increasing their investment in on-premises solutions. While cloud dominates the current landscape, the growing awareness around data sovereignty and security is propelling the on-premises market, creating a competitive balance between these two deployment modes.

By End-Users: Telecom (Largest) vs. Cloud Service Providers (Fastest-Growing)

In the US software defined-security market, the telecom segment holds the largest share, characterized by a robust need for secure data transmission and enhanced network protection. This sector is embracing advanced security measures to safeguard its infrastructure from increasingly sophisticated cyber threats, maintaining a leading position in the market. On the other hand, cloud service providers are emerging as the fastest-growing segment, driven by the escalating demand for cloud-based solutions and remote work scenarios. With organizations continually shifting to cloud environments, the need for comprehensive security frameworks has surged, making this segment vital for overcoming potential vulnerabilities associated with cloud technologies.

Telecom (Dominant) vs. Cloud Service Providers (Emerging)

The telecom sector is dominant within the US software defined-security market, primarily due to its extensive infrastructure and the critical nature of its services. Telecom companies are implementing sophisticated security solutions to protect against data breaches and cyber attacks, ensuring uninterrupted service delivery. Conversely, cloud service providers represent the emerging force in this market, as they innovate rapidly to address security challenges associated with cloud computing. Their growth is propelled by increased adoption of cloud technologies across various industries, and they focus on deploying elastic security measures that adapt to the dynamic nature of cloud environments, thus making security an integral aspect of their offerings.

Get more detailed insights about US Software-Defined Security Market

Key Players and Competitive Insights

The software defined-security market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and an increasing demand for integrated security solutions. Major players such as Palo Alto Networks (US), Fortinet (US), and Cisco Systems (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Palo Alto Networks (US) emphasizes innovation through continuous product development, focusing on AI-driven security solutions that adapt to evolving threats. Fortinet (US), on the other hand, leverages its extensive portfolio of security appliances and services, aiming for comprehensive coverage across various sectors. Cisco Systems (US) is strategically investing in partnerships and acquisitions to bolster its security offerings, particularly in cloud security, which is becoming increasingly critical in the current digital landscape. Collectively, these strategies contribute to a competitive environment that is both collaborative and adversarial, as companies seek to differentiate themselves while also addressing shared challenges in cybersecurity.

In terms of business tactics, companies are increasingly localizing their operations to enhance responsiveness to regional market demands. This approach not only optimizes supply chains but also allows for tailored solutions that meet specific regulatory requirements. The market structure appears moderately fragmented, with a mix of established players and emerging startups, each vying for market share. The collective influence of key players is significant, as they set industry standards and drive innovation, thereby shaping the overall market dynamics.

In October 2025, Palo Alto Networks (US) announced a strategic partnership with a leading cloud service provider to enhance its security offerings for cloud environments. This collaboration is expected to integrate advanced threat detection capabilities into the cloud provider's infrastructure, thereby expanding Palo Alto's reach and reinforcing its position as a leader in cloud security solutions. The strategic importance of this partnership lies in its potential to address the growing concerns around cloud security, which is paramount for organizations migrating to cloud-based operations.

In September 2025, Fortinet (US) launched a new line of security appliances designed specifically for small to medium-sized enterprises (SMEs). This move is indicative of Fortinet's strategy to penetrate underserved market segments, providing robust security solutions that are both affordable and scalable. The introduction of these appliances is likely to enhance Fortinet's market share among SMEs, a sector that is increasingly targeted by cyber threats but often lacks the resources for comprehensive security measures.

In August 2025, Cisco Systems (US) completed the acquisition of a cybersecurity startup specializing in AI-driven threat intelligence. This acquisition is poised to enhance Cisco's existing security portfolio by integrating cutting-edge AI capabilities, thereby improving its threat detection and response times. The strategic significance of this acquisition lies in Cisco's commitment to staying ahead of the curve in an increasingly competitive market, where AI integration is becoming a critical differentiator.

As of November 2025, the competitive trends in the software defined-security market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the landscape, as companies recognize the value of collaboration in addressing complex security challenges. Looking ahead, competitive differentiation is likely to evolve, with a pronounced shift from price-based competition to a focus on innovation, technological advancement, and supply chain reliability. This transition underscores the necessity for companies to not only offer competitive pricing but also to deliver superior value through advanced security solutions.

Key Companies in the US Software-Defined Security Market market include

Industry Developments

In recent developments within the US Software Defined Security Market, companies like Zscaler, VMware, and Palo Alto Networks have reported significant growth, with market opportunities expanding due to the increasing demand for cloud security solutions, driven by the rise in remote work and digital transformation efforts. Notably, in October 2023, Fortinet announced its strategic partnership with IBM to enhance their cybersecurity protocols, aligning their software-defined security solutions with advanced AI technologies. Additionally, Microsoft has been making strides in integrating security features into its Azure platform, reflecting a market trend toward enhancing cloud security functionalities.

Merger and acquisition activities have also been prominent, with Cisco Systems acquiring a cybersecurity firm in September 2023 to bolster its security portfolio and address growing consumer needs for comprehensive solutions. In the past few years, the market has seen accelerated investments, with the US government emphasizing cybersecurity resilience, particularly following significant breaches, which has created an urgency among businesses to adopt software-defined security measures. Overall, the landscape is evolving rapidly, with significant players adapting their strategies to meet market demands and navigate regulatory changes.

Future Outlook

US Software-Defined Security Market Future Outlook

The software defined-security market is projected to grow at 27.86% CAGR from 2024 to 2035, driven by increasing cyber threats and demand for flexible security solutions.

New opportunities lie in:

  • Development of AI-driven security analytics platforms
  • Integration of security solutions with IoT devices
  • Expansion of managed security service offerings for SMEs

By 2035, the market is expected to achieve substantial growth, reflecting evolving security needs.

Market Segmentation

US Software-Defined Security Market Component Outlook

  • Solutions
  • Services

US Software-Defined Security Market End-Users Outlook

  • Telecom
  • Cloud Service Providers

US Software-Defined Security Market Deployment Mode Outlook

  • Cloud
  • On-Premises

US Software-Defined Security Market Enforcement Point Outlook

  • Network Security Gateway
  • Others

Report Scope

MARKET SIZE 2024 3000.0(USD Million)
MARKET SIZE 2025 3835.8(USD Million)
MARKET SIZE 2035 44800.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 27.86% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Palo Alto Networks (US), Fortinet (US), Cisco Systems (US), Check Point Software Technologies (IL), VMware (US), Zscaler (US), McAfee (US), Trend Micro (JP), SonicWall (US)
Segments Covered Component, Enforcement Point, Deployment Mode, End-Users
Key Market Opportunities Integration of artificial intelligence enhances threat detection in the software defined-security market.
Key Market Dynamics Rising demand for adaptive security solutions drives innovation in the software defined-security market.
Countries Covered US

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