Next-generation Firewall Market Size, Share & Trends Analysis Report By Component, By Product Type, By Enterprise Size, By Industry Vertical, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global next-generation firewall market size was valued at USD 4.33 billion in 2021 and is expected to expand at a CAGR of 11.1% from 2022 to 2030. Next-generation firewall is a part of third generation of firewall technology, which is developed to protect organizations from advanced security threats at the application level through intellectual and context-aware security structures. It combines traditional firewall capabilities such as stateful inspection and packet filtering with other technologies that empowers individuals/businesses to make better decisions about what to access over the internet. Factors such as the rapid penetration of internet of things (IoT) and growing internal and external threats across devices are driving the demand for next-generation firewall solution and services.

The COVID-19 pandemic had a positive impact on the next-generation firewall market as lockdown lead to rise in internet access and usage of IoT devices, resulting in increased number of cyber-attacks. The work from home became mandatory for majority of the organizations during the pandemic, which further boosted the demand for robust security solutions. Therefore, to provide enhanced security to valuable data and information, enterprises adopted next-generation firewalls solutions to prevent their data from cyber threats and unsolicited data theft. For instance, in 2019, Check Point Software Technologies, a global cybersecurity provider, announced its partnership with Citrix Systems, Inc., a unified workspace, networking, and analytics solutions provider. The purpose of this partnership was to provide companies with additional next-generation firewalls within Citrix SD-WAD that provide extra level of security to protect their sensitive data and assets in the organization.

Component Insights

Based on components, the market is segmented into solution and services. The solution segment held the largest revenue share of 66.4% in 2021. The growth of this segment is mainly attributed to the increasing demand for cutting-edge security solutions from enterprises owing to the rise in number of cyber-attacks and increasing need to secure crucial data. For instance, according to 2022 Global Threat Report, published by CrowdStrike, number of ransomware-based data leaks have increased by 82% in 2021 from 2020.

The services segment is expected to witness the fastest growth rate of 12.7% during the forecast period. As cyber-threats and data security concerns keep rising the demand for firewall services is expected to increase in upcoming years.

Enterprise Size Insights

Based on enterprise size, the market is segmented into large size enterprises and small and medium sized enterprises (SMEs). The large size enterprises segment held the largest revenue share of 70.2% in 2021. The growth of this segment can be attributed to the factors such as increasing need to enhance productivity, increase flexibility & agility by ensuring firewall security and protecting organizations from cyber-attack that can potentially disrupt the business processes.

On the other hand, the small and medium sized enterprises (SMEs) segment is expected to witness the fastest growth rate of 12.3% during the forecast period. It can be attributed to the increasing inclination of small and medium sized enterprises toward cloud platform to ease time-consuming processes, enhance scalability, improves decision-making, and cost-efficiency without taking enough security precautions. For instance, according to a news conference conducted on 1^st March, 2021 by the Department of Homeland Security (DHS) secretary, Alejandro Mayorkas, stated that ransomware attacks have increased by nearly 300% in 2021 since 2020. Additionally, approximately 50-75% of the ransomware victims are small businesses.

Industry Vertical Insights

Based on industry vertical, the market is segmented into BFSI, retail, IT & telecommunication, healthcare, energy & utilities, manufacturing, government, and others. The other sub-segment further comprises education & academic research, aerospace & defense, and logistics. The BFSI segment accounted for the largest revenue share of 21.7% in 2021 and is projected to grow at a fastest CAGR of 12.9% over the forecast period. The increasing adoption of next-generation firewall solution and services to prevent cyber-attack on financial data on cloud or any virtual platform is likely to drive the demand for next-generation firewall in banking and finance industry.

The government segment is expected to witness significant growth rate of 12.5% during the forecast period. The market growth in this segment is attributed to the increasing adoption of cloud platforms by government agencies, thus increasing the demand for next-generation firewall to prevent fraudulent activities and data breach. According to Surfshark, a VPN service provider there were 71.7 million data breaches in Russia, 5.1 million in India, and 4.7 million in the U.S. between January and June 2022.

Regional Insights

North America dominated the market with a share of 34.5% in 2021 and is projected to expand at a CAGR of 10.7% over the forecast period owing to the factors such as rising cyber-attack cases and increasing banking frauds. Moreover, the presence of prominent market players such as Palo Alto Networks., Cisco Systems Inc., Barracuda Networks, Inc., Juniper Networks, Inc., Huawei Technologies Co., Ltd., Fortinet, Inc., and others, is likely to drive the growth for next-generation firewall market in the region.

Asia Pacific is anticipated to exhibit the fastest CAGR of 12.4% during the forecast period. Increasing government initiatives in adopting IoT devices, cloud platforms and the increasing regulations regarding cybersecurity are driving the growth of next-generation firewall in the region. For instance government of India launched Cyber Surakshit Bharat initiative in 2018 with the mission to spread awareness regarding cyber-attacks in the country. It was setup with the purpose of evaluating malware or cyber threats, providing information, and facilitating malware removal.

Key Companies & Market Share Insights

The next-generation firewall market has a fragmented competitive landscape, featuring several global and regional players. The market players are investing in research & development (R&D) to develop advanced solutions and gain a competitive edge in the market. Moreover, they are entering into partnerships and mergers & acquisitions as the market is characterized by innovation, disruption, and rapid change. For instance, in November 2022, Palo Alto Networks announced the acquisition of Cider Security, a software supply chain security and application security company. The acquisition aimed at helping Palo’s Prisma Cloud by empowering enterprises with supply chain security as part of code-to-cloud security platform. Some prominent players in the global next-generation firewall market include:

• Cisco Systems Inc.

• Barracuda Networks, Inc.

• Check Point Solution Technologies Ltd.

• Juniper Networks, Inc.

• Huawei Technologies Co., Ltd.

• Palo Alto Networks.

• Fortinet, Inc.

• Forcepoint LLC

• Sophos Ltd.

• Zscaler, Inc.

• WatchGuard Technologies, Inc.

• SonicWall

Next-generation Firewall Market Report Scope

Global Next-generation Firewall Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global next-generation firewall market report based on, component, product type, enterprise size, industry vertical, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Solution

  • Services

• Product Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

  • Virtual

  • Cloud

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Size Enterprises

  • Small and Medium Sized Enterprises (SMEs)

• Industry Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Retail

  • IT & Telecommunication

  • Healthcare

  • Energy & Utilities

  • Manufacturing

  • Government

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Italy

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Latin America

    • Brazil

    • Mexico

    • Chile

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa