The next-generation firewall is a high-performance firewall that can adequately respond to application-layer threats. Through in-depth insight into users, applications, and content in network traffic, and with the help of a new high-performance single-path heterogeneous parallel processing engine, NGFW can provide users with adequate application-layer integrated security protection. It helps users safely conduct business and simplify users of network security architecture. The next-generation firewall has made a qualitative leap in performance, security, ease of use, and manageability to meet users’ new defense and management needs.
Global next-generation firewall market size was stood at USD 3.23 billion in 2019, which likely to reach USD 6.29 billion by 2027, growing at a CAGR of 8.26 % during 2020–2027. The next-generation firewall market is driven by rising IoT trends and the growing number of internal and external cyber threats. Further, the increasing adoption of bring your own device in organizations requires an advance level of network security features; these factors estimated to fuel the growth of the market. Additionally, the surge in the number of electronic devices are getting connected to the internet, including, smart TVs, mobile devices, etc. will augment the demand for next-generation firewall over the coming years. The growing demand for dedicated networks offering additional functions such as centralized data management, user identification, web & deep packet filtering, and enhanced application control is projected to propel the growth of the market in the future.
Moreover, the upsurge in the next-generation firewall’s adoption for the rising internal and external threats to an organization is expected to witness remarkable growth in the forecast periods. Also, the growing concerns of companies related to network security and devices lead to demand for the next-generation firewall in the analysis periods. Furthermore, the increasing number of web applications and deployment of virtual machines and applications will demand the next-generation firewall to the requirement for enhanced cybersecurity in the projected periods. The growing applications of next-generation firewalls in the organization to effectively manage logs and ensure the integrity and improved business continuity are expected to trigger the growth of the market.
The Internet of Things can increase productivity by reducing human error. Therefore, more and more companies are seeking to use technology to achieve growth. The concept of using the Internet of Things better in the supply chain and medical and retail industries will be further developed to explore its applications in various fields. The IoT helps in self-driving cars, and this driverless technology is still being tested. In the next ten years, higher speeds, better bandwidth, and the least waiting time will reveal the possibility of IoT in the telecommunications industry. Sensors are affordable and useful technologies that can control everything from pacemakers to car fluid levels and IoT help in multilingual or bilingual support to the voice assistant.
Internal threats are more difficult to detect than external threats and challenging to manage with traditional security tools alone. External attacks usually require initial exploits or intrusions to gain access to the target network. Insider threats are often associated with malicious employees who intend to damage the enterprise through theft or sabotage directly. The threat posed by external attacks is getting bigger, and bigger-they are always looking for security holes, trying to enter the system, or trying to break an organization’s network defense.
Based on solutions, the global next-generation firewall market classified into hardware, virtual, and cloud. The cloud segment is expected to witness a higher growth rate during the forecast period. It is attributable to the growing adoption of next-generation firewall solutions by organizations to secure their business infrastructure from threats such as ransomware, APTs, zero-day attacks, malware, and unauthorized accesses.
The virtual segment will grow at a significant rate in the forecast period. It is owing to the virtual NGFW provide security posture and protects connectivity across public and private clouds, while high-speed VPN connections safeguard data.
Based on services, the global next-generation firewall market segregated into professional services (consulting, support and maintenance, system integration, training and education, and system integration), and managed service. The professional services are expected to gain higher by 2027. It is primarily attributed to organizations using NGFW to secure their business infrastructure from cyber threats. The professional services include consulting, support and maintenance, system integration, training and education, and system integration.
Based on organization size, the global next-generation firewall market bifurcates into small and medium enterprises, and large enterprises. The large enterprises dominated the next-generation firewall market in 2018. It is due to the rising adoption of advanced security by large enterprises to manage and secure a large volume of data.
The SME held a significant market share in 2019 based on the growing demand for the NGFW to secure the organizations’ data along with the rise in spending on IT security.
Based on the end-user industry, the global next-generation firewall market is categorized into banking, financial services, insurance (BFSI), retail, and telecom, government and public utilities, healthcare, energy and utilities, education and others. The banking, financial services, and insurance segment will hold higher market potential by 2027. It is due to the rise in digital identities in all businesses of the banking sector, and the increasing trend of BYOD and IoT results in massive growth in advanced cyberattacks.
The government and public utilities are estimated to grow at the highest rate during the forecast period. It is due to the ongoing digitalization of government offices and the increase in security threats related to government records, and documents.
Based on geography, the global next-generation firewall market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America is slated to account for a significant share by 2027 in the next-generation firewall market. The growth in the region can be attributed to the presence of key players of NGFW across this region, growing adoption of NGFW by businesses to secure the high volume of sensitive and vital data and continuously performing network security solutions.
The Asia Pacific is expected to provide significant growth opportunities due to the surge in the number of SMEs, growing cyber threats, and the focus of the governments of regional countries on data security.
Companies such as Cisco Systems, Fortinet, Inc, Check Point Software, Palo Alto Networks, Barracuda Networks, Forcepoint, Zscaler, Juniper Networks, WatchGuard Technologies, Sonicwall Inc., Sophos Ltd., and Hillstone Networks are the key players in the global next-generation firewall market.
By Organization Size
By End-User Industry