The next-gen firewall market revenue totalled USD 3.3 Billion in 2022. The sales in the next-gen firewall market are expected to reach USD 8.5 billion by 2033, at 9.1% CAGR between 2023 and 2033.
| Report Attributes | Details |
|---|---|
| Next-Gen Firewall Market Value (2022) | USD 3.3 Billion |
| Next-Gen Firewall Market Value (2033) | USD 8.5 Billion |
| Next-Gen Firewall Market Value (2023) | USD 3.5 Billion |
| Next-Gen Firewall Market Growth Rate (2023 to 2033) | 9.1 % CAGR |
| Top 5 Vendor Market Share | Around 35% |
Next-gen firewall market currently represents about 20% of sales of total network security market. Demand in the next-gen firewall market is gaining traction as it offers multi-layered protection by inspecting network traffic and understanding the nature of data transfer.
The next-gen firewall includes ransomware protection, spam protection, and antivirus along with endpoint security capabilities for the protection of enterprise data. Increasing modern cyber-attacks and advanced hacking methods are driving the demand for next-gen firewalls among enterprises for better security.
The next-gen firewall includes an intrusion protection system and intrusion detection system that helps in detecting attacks based on threat signatures, anomalous activities, and traffic behavioural analysis.
| Market Statistics | Details |
|---|---|
| Jan - Jun (H1), 2021 (A) | 8.8% |
| Jul - Dec (H2), 2021 (A) | 9.0% |
| Jan - Jun (H1),2022 Projected (P) | 9.1% |
| Jan - Jun (H1),2022 Outlook (O) | 9.3% |
| Jul - Dec (H2), 2022 Outlook (O) | 9.5% |
| Jul - Dec (H2), 2022 Projected (P) | 9.3% |
| Jan - Jun (H1), 2023 Projected (P) | 9.6% |
| BPS Change: H1,2022 (O) - H1,2022 (P) | (+)20 |
| BPS Change: H1,2022 (O) - H1,2021 (A) | (-) 49 |
| BPS Change: H2, 2022 (O) - H2, 2022 (P) | (+)20 |
| BPS Change: H2, 2022 (O) - H2, 2022 (A) | (+)50 |
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The next-gen firewall demand is estimated to grow at 9.1% CAGR between 2022 and 2033 in comparison to 7.0% CAGR recorded during historic period of 2018 to 2022. Growth is underpinned with the adoption of advanced firewall over traditional firewall.
Traditional firewalls were limited to data link layer and transport layer in OSI model. In addition to this, traditional firewall typically blocks common application ports or service on a network for controlling application access and monitor specific network security threats.
With complex network connectivity and multiple ports usage for various applications it is difficult for traditional firewalls to identify the targeted port. To overcome this challenge, the adoption of next-gen firewall is increasing as it includes intrusion detection system and protection system for improved packet-content filtering of network traffic.
Physical NGFW appliance segment in global next-gen firewall market is estimated to have dominating market share of 66.7% in 2022. Regionally, North America is currently dominating the global market owing to high adoption of network security solutions among enterprises.
The adoption of security solutions for the next generation helps to improve the company’s product and operational efficiencies. Next-generation endpoint security uses machine learning, artificial intelligence (AI), and tighter integration of networks to offer more comprehensive and adaptive protection.
Next-gen security solutions incorporate real-time analysis of user and system behavior to analyse executables. Existing security technologies moving in the direction of context-aware computing technology, allows companies to identify advanced threats.
System failures in IT infrastructure can cause a payment failure that interrupts global business, while network connection loss affects government services like law enforcement. This factor is expected to create potential opportunities for next-gen firewall vendors over the forecast period.
Principal Consultant
Internet-based cybersecurity tools can be accessed and are widely used for protecting cloud-based applications. More usage of the internet increases the possibility of data breaches and simple manipulation of data, which is not possible in the internal security system.
As a result, businesses are not adopting internet-based security solutions or disclosing internet tools for firewall management. Clear and multifactor safety solutions are offered by providers for an adequate level of protection.
It is also necessary for businesses to consider future DoS (Denial-of-Service) attacks. However, without proper protective measures and solutions, it is relatively difficult to identify these attacks by security analytics solutions.
Hence, demand for next-gen firewall systems is expected to increase to maintain robust and efficient security systems.
Burgeoning Need for Defense Against Cyber-Attacks to Boost Next-Gen Firewall System Demand
The next-gen firewall demand in the USA is expected to account for nearly 78.6% of North America market share through 2033. In the USA, next-gen firewall providers are focusing on offering intrusion detection and prevention system for identifying and analysing irregular deviation from cyber-attacks.
These players are focusing on small and medium organizations for securing their applications on the cloud at a considerably low cost. These players also offer network security solutions and various strong authentication systems.
They are also offering integration services for existing platforms for managing and centralizing data related to emails, access and other business assets.
Next-Gen Firewall Providers Offers Security Compliance Solutions to Enterprises to Gain Revenue
Europe is predicted to remain one of the most attractive markets during the forecast period. According to the study, the United Kingdom is estimated to grow by 3.2X during the forecast period.
Countries in Europe are aggressively adopting security solutions in order to ensure the safety and integrity of critical information related to citizens. In the United Kingdom enterprises are implementing encryption solutions along with the adoption of security compliance to reduce potential data breaches with regard to emails.
Moreover, companies are regularly updating security solutions such as network security, data loss prevention, and other security measures to improve data integrity over the cloud.
Booming IT Sector in Japan to Create Conducive Environment for Next-Gen Firewall Market
Sales in Japan are estimated to grow at an impressive rate of around 12.4% CAGR between 2023 and 2033. In Japan, the adoption of network security solutions is growing at a high rate. Dependence on networks is rising and this has led to a surge in adoption of network security solutions.
Due to businesses growing at a robust pace, complexity in IT infrastructure is also increasing. Hence, companies are unable to manage and control. As a result, large and small & medium enterprises in the Japan are adopting network security solutions to combat cyber threats.
| Countries | BPS Change (H2'22 (O) - H2'22 (P)) |
|---|---|
| India | (+)26 |
| Singapore | (+)25 |
| France | (+)23 |
| UAE | (+)21 |
| Germany | (+)19 |
The rapidly increasing adoption of cloud services in India drove the BPS change of (+)26 BPS units for H2’22(O)-H2’22(P). Singapore saw a BPS change of (+)25 units because as cyber threats continue to evolve, organizations in Singapore are investing in NGFWs to protect their networks and data from cyber attacks
France witnessed a BPS change of (+)23 units because of the increasing need for advanced network security, regulatory compliance, and the growth of cloud computing and Internet of Things (IoT) deployments.
As UAE has made significant investments in cybersecurity in recent years due to the increasing number of cyber-attacks targeting the region allowed the market to witness a BPS change of (+)21 units.
The strict data privacy regulations such as the General Data Protection Regulation (GDPR) in Europe drove the BPS change of (+)19 market in Germany.
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Virtual Next-Gen Firewall Appliance to Remain Highly Sought-After
In terms of type, the virtual NGFW appliance segment is expected to showcase a higher market share in the coming years. This segment is predicted to create an absolute $ opportunity of USD 1,717.0 billion by the end of 2033.
The adoption of virtual appliances is witnessing high growth in private and public cloud deployments due to their scalability, automated provisioning, and security policy management in private clouds.
Virtual appliance inspects traffic and security enforcement for all traffic within the cloud environment. Hence, these factors will drive the demand for virtual appliances during the forecast period.
Limited Budget in SMEs to Push the Adoption of Next-Gen Firewall Systems due to its Cost-Effectiveness
The small and medium-sized enterprises (SMEs) segment is expected to grow by 3.0X during the forecast period. As per FMI, the segment is expected to showcase a strong CAGR growth over the upcoming years owing to rapid digitization.
SMEs are adopting network security solutions as these companies have a limited budget to manage business applications and other business activities. Hence, small companies generally use cloud-based applications for their businesses.
These cloud-based applications are sometimes prone to risk due to a lack of authentication. This encourages small and medium enterprises to use network security solutions for securing their cloud-based identities.
Growing Rate of Cyber-Attacks in Healthcare Sector to Propel the Demand for Next-Gen Firewall Systems
The healthcare industry is estimated to grow at the highest CAGR of 11.5% during the forecast period. The healthcare industry is the top most targeted industry among others by cyber-attacker due to the availability of personal and confidential data related to patients.
Information stolen includes data medical history data of patients, bills, and other important documents. These can be used by cybercriminals for creating fake IDs to claim insurance or gain other benefits.
Moreover, due to the rising trend of BYOD in the healthcare industry, employees or staff are making use of their own devices for performing a task and saving data on cloud-based applications. As these applications are less secure and more prone to cyber threats and viruses, demand for next-gen firewall systems is increasing.
Next-gen firewall market players are focusing on various strategies such as investments in research and development to support future technologies. In addition, several companies are adopting inorganic growth strategies such as acquisition and entering into partnership with other companies to develop their own next-gen firewall to reduce the churn rate.
| Attribute | Details |
|---|---|
| Market value in 2022 | USD 3.3 Billion |
| Market CAGR 2023 to 2033 | 9.1% |
| Share of top 5 players | Around 35% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Malaysia, Indonesia, Singapore, Australia & New Zealand, GCC Countries, Turkey, North Africa and South Africa |
| Key Segments Covered | Type, Enterprise Size, Industry and Region |
| Key Companies Profiled | Cisco; Checkpoint Software Technologies; Barracuda; Fortinet; Sophos; Juniper Networks; Palo Alto Networks; Cloudflare; Sonicwall; Hillstone Networks; Sangfor Technologies; Zscaler |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The overall market is estimated to accrue USD 3.5 billion as of 2023.
The virtual NGFW appliance segment is estimated to witness a growth opportunity of USD 1,717 billion by 2033.
The market in the last 5 years expanded by a CAGR of 7.0% between 2018 and 2022.
The physical NGFW appliance segment is expected to dominate the market over the forecast period
Demand for flight tracking systems in Japan may exhibit a 12.4% CAGR till 2033.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Pricing Analysis 5. Global Market Demand (Value in USD Million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Market Background 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 7.1. Physical NGFW Appliance 7.2. Virtual NGFW Appliance 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Enterprise Size 8.1. Large Enterprises 8.2. Small and Medium-sized Enterprises (SMEs) 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Industry 9.1. IT & Telecom 9.2. BFSI 9.3. Healthcare 9.4. Manufacturing 9.5. Retail 9.6. Government 9.7. Others 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. East Asia 10.5. South Asia Pacific 10.6. Middle East and Africa 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. South Asia & Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Key Countries Analysis-Market 18. Market Structure Analysis 19. Competition Analysis 19.1. Cisco 19.2. Checkpoint Software Technologies 19.3. Barracuda 19.4. Fortinet 19.5. Sophos 19.6. Juniper Networks 19.7. Palo Alto Networks 19.8. Cloudflare 19.9. Sonicwall 19.10. Hillstone Networks 19.11. Sangfor Technologies 19.12. Zscaler 20. Assumptions and Acronyms Used 21. Research Methodology
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Next-Gen Firewall Market
