Firewall As A Service Market Size, Share & Trends Analysis Report By Service Type, By Deployment Model, By Enterprise Size, By Industry Vertical, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global firewall as a service market size was valued at USD 2.53 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 22.3% from 2023 to 2030. Firewall as a service is a type of cloud-based security service where a third-party provider manages and maintains firewall protection for an organization. This service offers centralized control, ease of use, and flexibility for enterprises to protect their network against security threats.

It eliminates the need for enterprises to invest in and manage physical firewalls, allowing them to focus on their core business. Factors such as a surge in data breaches in the cloud environment and the proliferation of NGFW across devices are driving the demand for firewall as a service solutions and services.

The COVID-19 outbreak had a positive impact on the firewall as a service market since the lockdown led to a rise in the usage of IoT devices and internet access, resulting in an increased number of cyber-attacks. Due to the widespread shift to remote working models, demand for secure and reliable network protection has increased, driving growth in the firewall as a service market.

Many organizations have opted for firewall as a service as a cost-effective and scalable solution to secure their remote workforces. Additionally, the increase in cyber-attacks targeting remote workers has further increased the need for effective network security. Moreover, COVID-19 has accelerated the trend towards cloud-based security services, including firewall as a service, and is expected to drive continued growth in the market in the coming years.

Service Type Insights

Based on service types, the market is segmented into traffic monitoring & control, compliance & audit management, reporting & log management, automation & orchestration, security management, managed services, professional services, and others. The other segment includes connectivity & configuration management, unified threat management (UTM), and backup & recovery.

The compliance & audit management segment held the largest revenue share of 21.7% in 2022. The growth of this segment is mainly attributed to the increasing demand for network security policies, practices, and systems to meet regulatory requirements and industry standards from enterprises, owing to the rise in the number of cyber-attacks and the increasing need to secure crucial data.

The managed services segment is expected to witness the fastest growth rate of 26.5% during the forecast period. The demand for this segment has been growing in recent years as organizations increasingly pursue outsourcing their network security to managed service providers.

Deployment Model Insights

Based on the deployment model, the market is segmented into public, private, and hybrid. The public segment held the largest revenue share of 48.4% in 2022. The growth of this segment is mainly attributed to the increasing adoption of cloud-based solutions by enterprises of all sizes, who seek to reduce their security risks and focus on their core business activities. Some of the factors responsible for the rise in demand for public deployment models include flexibility, scalability, cost-effectiveness, ease of deployment, and improved security.

The hybrid segment is expected to witness the fastest growth rate of 24.8% during the forecast period. Due to the rise in the adoption of virtual private networks, the demand for firewall services is expected to increase in the coming 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 69.5% in 2022. The growth of this segment can be attributed to factors such as increased flexibility, increasing need to enhance productivity, & agility by ensuring firewall security and protecting organizations from cyber-attacks that can potentially disrupt business processes.

On the other hand, the small and medium-sized enterprises (SMEs) segment is expected to witness the fastest growth rate of 23.6% during the forecast period. It can be attributed to the increasing inclination of small and medium-sized enterprises toward hybrid platforms to enhance scalability, ease time-consuming processes, introduce cost-efficiency, and improve decision-making 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 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, education, and others. The other sub-segment further comprises travel & hospitality, and transportation. The BFSI segment accounted for the largest revenue share of 18.2% in 2022. The increasing adoption of firewall as a service to prevent cyber-attacks on financial data on hybrid or any private-cloud platform is likely to drive the demand for firewall as a service in the banking and finance industry.

The retail segment is expected to witness the fastest growth rate of 28.6% during the forecast period. The market growth in this segment is attributed to the increasing adoption of hybrid platforms by retail industries, thus increasing demand for firewall as a service to prevent fraudulent activities and data breaches.

Regional Insights

North America dominated the market with a share of 34.4% in 2022 and is estimated to expand at a CAGR of 21.8% during the forecast period, owing to factors such as rising cyber-attack cases and increasing banking fraud. Moreover, the presence of prominent market players such as Palo Alto Networks., Cisco Systems Inc., Barracuda Networks, Inc., Juniper Networks, Inc., Fortinet, Inc., and others, is likely to drive the growth for the firewall as a service market in the region.

The market within Asia Pacific is anticipated to expand at the fastest CAGR of 23.7% during the forecast period. Increasing government initiatives in adopting IoT devices and hybrid platforms, along with the increasing regulations regarding cyber security, are factors driving the growth of the firewall as a service industry in the region. For instance, the Government of India launched the Cyber Surakshit Bharat initiative in 2018 with the mission to spread awareness regarding cyber-attacks in the country. It was set up with the purpose of evaluating malware or cyber threats, providing information, and facilitating malware removal.

Key Companies & Market Share Insights

The firewall as a service market has a fragmented and 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 changes.

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 was aimed at helping Palo’s Prisma Hybrid by empowering enterprises with supply chain security as part of a code-to-hybrid security platform. Some prominent players in the global firewall as a service market include:

• Cisco Systems Inc.

• Barracuda Networks, Inc.

• Check Point Solution Technologies Ltd.

• Juniper Networks, Inc.

• Cato Networks Ltd.

• Palo Alto Networks.

• Fortinet, Inc.

• Force point LLC

• Sophos Ltd.

• Zscaler, Inc.

• Watch Guard Technologies, Inc.

• Sonic Wall

Firewall As A Service Market Report Scope

Global Firewall As A Service Market Segmentation

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

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

  • Traffic Monitoring & Control

  • Compliance & Audit Management

  • Reporting & Log Management

  • Automation & Orchestration

  • Security Management

  • Managed Services

  • Professional Services

  • Others

• Deployment Model Outlook (Revenue, USD Million, 2017 - 2030)

  • Public

  • Private

  • Hybrid

• 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

  • Government

  • Manufacturing

  • Education

  • 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