East-West Threat Detection Appliance Global Market Report 2025

The east-west threat detection appliance market size has grown rapidly in recent years. It will grow from $2.61 billion in 2024 to $3.06 billion in 2025 at a compound annual growth rate (CAGR) of 17.5%. The growth in the historic period can be due to increasing regulatory compliance demands, rising focus on internal traffic visibility, growing enterprise network sizes, surge in lateral attack incidents, expansion of corporate data centers, and rising concerns about insider driven breaches.

The east-west threat detection appliance market size is expected to see rapid growth in the next few years. It will grow to $5.75 billion in 2029 at a compound annual growth rate (CAGR) of 17.1%. The growth in the forecast period can be due to increasing adoption of zero trust security policies, rising awareness of internal breach risks, growing investment in cyber incident resilience, surge in security focused governance mandates, expansion of interconnected digital business partnerships, and increasing emphasis on real time breach response. Major trends in the forecast period include technological advancements in cross segment traffic analytics, advancements in encrypted traffic inspection methods, innovations in automated lateral threat detection, developments in artificial intelligence assisted incident response, research and development in behavioral detection models, and innovations in micro segmentation driven security orchestration.

The increasing sophistication of network-level attacks is expected to drive the growth of the east-west threat detection appliance market in the near future. Network-level attacks involve cyber intrusions that exploit vulnerabilities in interconnected systems, allowing attackers to move laterally across internal networks to steal data or disrupt operations. These attacks are on the rise due to the growing adoption of interconnected cloud and hybrid networks, which provide attackers with more entry points and pathways for lateral movement within enterprise environments. East-west threat detection appliances monitor and analyze lateral traffic between systems within data centers or cloud environments, helping detect and prevent network-level attacks such as lateral movement, malware propagation, and insider threats. They offer deep visibility, real-time anomaly detection, and automated response capabilities across internal network segments. For example, in April 2025, the Federal Bureau of Investigation (FBI) reported that internet crime losses in the U.S. exceeded $16 billion in 2024, a 33% increase from the previous year. This rise in network-level threats is driving the demand for east-west threat detection appliances.

Leading companies in the east-west threat detection appliance market are focusing on integrating technologies such as artificial intelligence (AI) to enhance network visibility, monitoring, and threat prevention. AI network security solutions use artificial intelligence and machine learning to monitor, detect, and respond to cyber threats in real time, improving protection against malware, intrusions, and abnormal network behavior. For instance, in September 2025, Huawei Technologies Co. Ltd., a China-based telecommunications and enterprise network infrastructure provider, launched the upgraded Xinghe AI Network Security Solution. This AI-powered zero-trust platform is designed to secure enterprise branches, campuses, and data centers, offering east-west application-layer threat detection, automatic policy generation, and unified AI-driven security management. The solution enhances real-time detection, automated response, and prevention of internal attacks.

In October 2024, Thoma Bravo, a U.S.-based private equity firm specializing in software and technology investments, acquired Darktrace for $5.3 billion. This acquisition gives Thoma Bravo access to Darktrace’s AI-driven cybersecurity platform, which includes network detection and response capabilities for monitoring internal (east-west) traffic. This strengthens Thoma Bravo’s position in the east-west threat detection appliance market and expands its operational scale across enterprise networks. Darktrace is a UK-based company, specializes in east-west threat detection appliances.

Major players in the east-west threat detection appliance market are Cisco Systems Inc., Broadcom Inc., Palo Alto Networks Inc., Arista Networks Inc., Fortinet Inc., Akamai Technologies Inc., Check Point Software Technologies Ltd, Nutanix Inc., Zscaler Inc., Trend Micro Incorporated, Sangfor Technologies Inc., Netskope Inc., Rapid7 Inc., Bitdefender LLC, ExtraHop Networks Inc., Vectra AI Inc., Illumio Inc., Corelight Inc., ColorTokens Inc., and Tigera Inc.

North America was the largest region in the east-west threat detection appliance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in east-west threat detection appliance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the east-west threat detection appliance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The east-west threat detection appliances market research report is one of a series of new reports that provides east-west threat detection appliances market statistics, including east-west threat detection appliances industry global market size, regional shares, competitors with a east-west threat detection appliances market share, detailed east-west threat detection appliances market segments, market trends and opportunities, and any further data you may need to thrive in the east-west threat detection appliances industry. This east-west threat detection appliances market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

An east west threat detection appliance is a security tool that monitors and inspects traffic moving inside a data centre or cloud network, specifically between internal servers, workloads, and applications. It works by analyzing internal communication in real time, using deep inspection, analytics, or behavioral techniques to identify hidden malware, lateral movement, and other suspicious activities that traditional perimeter tools often miss. These appliances are important because they help organizations detect stealthy attacks early, prevent internal spread, and strengthen zero trust security across complex environments.

The primary components of east west threat detection appliances are hardware, software, and services. Deployment modes include on premises and cloud based models. Hardware refers to the physical components such as sensors, processing units, detection modules, and network connectivity units that enable the monitoring, analysis, and prevention of lateral threats within an organization’s internal network. These appliances are adopted by organizations of various sizes, including small and medium enterprises and large enterprises. They are used for multiple applications such as network security, data centre security, cloud security, and other related applications. They cater to various end users, including banking, financial services, and insurance (BFSI), healthcare, information technology and telecom, government, retail, manufacturing, and other industries.

The east-west threat detection appliance market consists of revenues earned by entities by providing services such as risk assessment services, incident response services, forensic investigation services, compliance auditing services, vulnerability assessment services, and threat hunting services. The market value includes the value of related goods sold by the service provider or included within the service offering. The east-west threat detection appliance market also includes sales of packet capture appliances, flow monitoring appliances, sandboxing appliances, intrusion detection appliances, log collection appliances, and anomaly detection appliances. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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