Deep Packet Inspection and Processing Market

Global Deep Packet Inspection and Processing Market:

The global deep packet inspection and processing market size reached USD 29.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 175.1 Billion by 2033, exhibiting a growth rate (CAGR) of 20.24% during 2025-2033. The rising need for enhanced quality of service (QoS), copyright enforcement, lawful interception, targeted advertising, policy definition, tiered services, etc., is one of the primary factors stimulating the market.

Deep Packet Inspection and Processing Market Analysis:

• Major Market Drivers: The rising instances of cybercrimes are stimulating the market. In line with this, as governing agencies deal with confidential data, there is a rise in the demand for this technique to strengthen censorship security and surveillance, which is acting as another significant growth-inducing factor.
• Key Market Trends: The inflating popularity of the remote working models and the elevating network traffic are increasing the need for DPI to improve QoS and reduce network congestion, which is positively influencing the market. Besides this, the expanding data-intensive applications are further catalyzing the market.
• Competitive Landscape: Some of the prominent companies in the global market include Bivio Networks Inc., Cisco Systems Inc., Extreme Networks, Huawei Technologies Co. Ltd., IBM Corporation, Juniper Networks Inc., LogRhythm Inc., Netscout Systems Inc., Sandvine Inc., and Viavi Solutions, among many others.
• Geographical Trends: North America exhibits a clear dominance in the market, owing to the proliferation of cloud services. Moreover, the introduction of advanced network management solutions will continue to fuel the market in the coming years.
• Challenges and Opportunities: One of the primary challenges hindering the market is the growing concerns about comprehensive data analysis. However, the implementation of robust encryption protocols is expected to fuel the global market over the forecasted period.

Deep Packet Inspection and Processing Market Trends:

Integration of 5G Networks

The rising need for higher data speeds and increasing data volumes is fueling the market. In February 2024, NEC Corporation launched a new user plane function (UPF) product for telecom operators that can be utilized to process user data traffic in 5G core networks. It also offers an enhanced built-in deep packet inspection function, thereby enabling the visualization of communications quality and the collection of data. Besides this, DPI solutions handle the unique demands of 5G, such as low latency and massive device connectivity, thereby ensuring secure data and seamless transmission. For example, in February 2024, ipoque, a Rohde & Schwarz company and provider of next-gen deep packet inspection (DPI) software, introduced DPI and encrypted traffic intelligence (ETI) solutions that leverage machine learning (ML) and deep learning (DL) techniques to minimize network blind spots and enhance traffic monitoring. These launches are positively influencing the deep packet inspection and processing market outlook.

Increasing Need for Security

With the rising concerns about cybersecurity threats, there is an elevating demand for DPI solutions that provide advanced threat intelligence and detection capabilities, which is acting as a significant growth-inducing factor. For instance, in September 2023, Enea developed the Enea Qosmos Threat Detection SDK that enables the integration of Enea's flagship deep packet inspection (DPI) engine, Qosmos ixEngine, with core IDS capabilities drawn from Suricata. Additionally, it also facilitates easy integration into third-party software launched by large organizations, cybersecurity solution vendors, managed service providers, etc., and allows improved accessibility, simplified licensing, and optimized operating costs. This is bolstering the deep packet inspection and processing market revenue. Similarly, Netscout's Omnis Cyber Intelligence (OCI) represents an advanced network detection and response solution that uses scalable DPI to identify threats at the packet source. Furthermore, the expanding data-intensive applications are expected to fuel the overall market in the coming years. In March 2024, XipLink Inc., a technology leader in secure, optimized, and intelligent multi-path hybrid networking, unveiled XipACE. This XipLink application classification engine uses the deep packet inspection (DPI) engine R&S®PACE 2 from ipoque.

Rising Adoption of AI

The widespread usage of artificial intelligence and machine learning to detect and respond to threats more efficiently is augmenting the market. For example, in August 2023, Protean eGov Technologies (Protean), one of the providers of universal, citizen-centric, and population-scale e-governance solutions, announced a partnership with Google Cloud, which aimed to accelerate deep packet inspection deployment and the adoption of Generative AI as well as cloud in both public and private sectors in multiple ways. Apart from this, the AI-driven DPI is gaining traction, as it can identify patterns, analyze vast amounts of network data, predict potential security breaches before they occur, etc., which is escalating the deep packet inspection and processing market demand. For instance, in May 2024, Secureworks introduced Secureworks Taegis NDR to stop nefarious threat actors from traversing the network. In addition, it can continuously analyze network telemetry with deep packet inspection (DPI) and is usually powered by an AI engine.

Global Deep Packet Inspection and Processing Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the deep packet inspection and processing market forecast at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on the component, product, deployment mode, solution, organization size, and vertical.

Breakup by Component:

• Solutions
• Services
   

Among these, solutions currently exhibit a clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the component. This includes solutions and services. According to the report, solutions represented the largest market segmentation.

Solutions represent the largest segment in the market due to their critical role in enhancing network security, optimizing traffic management, and ensuring regulatory compliance. For instance, Netscout Systems offers the Omnis Cyber Intelligence (OCI) platform, which utilizes scalable DPI for real-time threat detection and historical investigation. Similarly, Enea's launch of the Qosmos Threat Detection SDK integrates core intrusion detection system (IDS) capabilities, enhancing performance and scalability for large-scale cybersecurity applications. As per the deep packet inspection and processing market overview, these developments underscore the importance of DPI solutions in adapting to the evolving landscape of cybersecurity threats and the growing demand for robust, scalable network management tools​.

Breakup by Product:

• Standalone
• Integrated
   

Currently, integrated holds the largest deep packet inspection and processing market share

The report has provided a detailed breakup and analysis of the market based on the product. This includes standalone and integrated. According to the report, integrated represented the largest market segmentation.

Integrated solutions are gaining traction, as they offer comprehensive and all-in-one capabilities that address multiple network security and management needs efficiently. Besides this, they combine various functionalities, such as intrusion detection, traffic management, and regulatory compliance, into a single platform, making them highly attractive to organizations seeking streamlined and cost-effective network management. For example, Viavi Solutions' NITRO AIOps on Google Cloud merges advanced network analytics with cloud-native services, offering an integrated solution that enhances network intelligence and optimization. These innovations highlight the shift towards integrated solutions that provide robust, versatile, and scalable network security and management capabilities, thereby expanding the deep packet inspection and processing industry.

Breakup by Deployment Mode:

• On-Premises
• Cloud-Based
   

Currently, on-premises exhibits a clear dominance in the deep packet inspection and processing market value

The report has provided a detailed breakup and analysis of the market based on the deployment mode. This includes on-premises and cloud-based. According to the report, on-premises represented the largest market segmentation.

On-premises are installed and managed within an organization's data centers, providing robust security and privacy by keeping data local. On-premises DPI solutions offer enhanced customization, allowing organizations to tailor the system to their unique network environments and security requirements. For example, in June 2023, Netscout Systems launched the Visibility Without Borders (VWB) platform, an on-premises solution that integrates performance, security, and availability management into a unified platform. This solution helps organizations proactively identify and mitigate risks within their networks by providing deep insights into network traffic and potential threats. Similarly, Cisco's acquisition of Lightspin in February 2023 highlighted its commitment to strengthening on-premises security capabilities. Lightspin's technology enhances Cisco's existing on-premises DPI solutions by providing end-to-end security from development through runtime, which is crucial for organizations managing sensitive data on their premises.​

Breakup by Solution:

• Hardware
• Software
   

Software currently holds the largest market share

The report has provided a detailed breakup and analysis of the market based on the solution. This includes hardware and software. According to the report, software represented the largest market segmentation.

The software can analyze data packets at a granular level, thereby allowing for detailed inspection and control of network traffic. Moreover, DPI software can identify, categorize, and manage traffic based on predefined rules, which increases the deep packet inspection and processing market statistics in this segmentation. For instance, Enea's introduction of the Qosmos Threat Detection SDK in September 2023 integrated the Qosmos ixEngine with core IDS capabilities from Suricata. This integration boosts the performance and scalability of cybersecurity solutions by enabling detailed packet-level inspection and threat detection within large-scale networks.​

Breakup by Organization Size:

• Small and Medium-Sized Enterprises
• Large Enterprises
   

Large enterprises exhibit a clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the organization size. This includes small and medium-sized enterprises and large enterprises. According to the report, large enterprises represented the largest market segmentation.

Large enterprises represent the largest segment in the market due to their extensive and complex network infrastructures, which require robust security, detailed traffic management, and regulatory compliance. These organizations handle vast amounts of sensitive data and face sophisticated cyber threats, necessitating advanced DPI solutions that can provide comprehensive network visibility and protection. Large enterprises have the financial resources to invest in cutting-edge DPI technologies and the operational needs that justify such investments. This is one of the deep packet inspection and processing market price trends in this segmentation.

Breakup by Vertical:

• Banking, Financial Services and Insurance
• Government and Defense
• Healthcare
• IT and Telecom
• Retail and Ecommerce
• Manufacturing
• Others
   

IT and telecom exhibit a clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes banking, financial services and insurance, government and defense, healthcare, IT and telecom, retail and ecommerce, manufacturing, and others. According to the report, IT and telecom represented the largest market segmentation.

The rising requirement for enabling telecom operators to analyze network packets, detect and mitigate security threats, optimize bandwidth usage, and ensure adherence to service-level agreements (SLAs) is bolstering the segment's growth. For example, Cisco's acquisition of Israeli cloud security company Lightspin in February 2023 aimed to enhance its DPI capabilities, providing comprehensive security and observability from construction to runtime in IT and telecom networks​.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America currently dominates the market

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share. 

The rising security requirements are primarily driving the market in North America. According to IMARC, the United States security market size is projected to exhibit a growth rate (CAGR) of 9.8% during 2024-2032. Moreover, continuous collaborations and partnerships are also acting as significant growth-inducing factors. For instance, in January 2023, ipoque GmbH, a Rohde & Schwarz company, and APCON, Inc., a U.S.-based network visibility and security services provider for data centers, partnered to advance deep packet inspection (DPI) software as a licensable add-on software tool for the IntellaView HyperEngine hardware platform from APCON. Apart from this, as per the deep packet inspection and processing market segmentation, the wide presence of prominent players who continuously expand their product portfolios to meet the evolving security needs of enterprises will continue to fuel the regional market over the forecasted period.

Competitive Landscape:

The deep packet inspection and processing market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include:

• Bivio Networks Inc.
• Cisco Systems Inc.
• Extreme Networks
• Huawei Technologies Co. Ltd.
• IBM Corporation
• Juniper Networks Inc.
• LogRhythm Inc.
• Netscout Systems Inc.
• Sandvine Inc.
• Viavi Solutions
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Deep Packet Inspection and Processing Market Recent Developments:

• May 2024: Secureworks introduced Secureworks Taegis NDR, which can continuously analyze network telemetry with deep packet inspection (DPI) and is usually powered by an AI engine.
• February 2024: NEC Corporation launched a new user plane function (UPF) product for telecom operators with an enhanced built-in deep packet inspection and processing function.
• February 2024: ipoque, a Rohde & Schwarz company and provider of next-gen deep packet inspection (DPI) software, developed DPI and encrypted traffic intelligence (ETI) solutions that leverage machine learning (ML) and deep learning (DL) techniques to minimize network blind spots and enhance traffic monitoring.

Deep Packet Inspection and Processing Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the deep packet inspection and processing market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global deep packet inspection and processing market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the deep packet inspection and processing industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.