Next-Generation Firewall Market

[136 Pages Report] The Next-Generation Firewall Market expected to grow from $2.39 billion in 2017 to $4.27 billion by 2023 at a CAGR of 12.3% from 2017 to 2022.  NGFW (Next-Generation Firewall) is a process of collecting, archiving, managing, and reporting the logs, which are generated from various devices, such as firewalls, routers, servers, and switches. NGFW solutions deal with a huge amount of computer-generated log data. The main objective is to track the security events and network activities. With proper NGFW solutions, an organization can effectively manage logs while ensuring the integrity and improved business continuity. The sophistication level in the cyberattacks is increasing and creating demands for more comprehensive NGFW services that would enable the protection of complex network infrastructure. The base year considered for the next-generation firewall market study is 2017, and the forecast has been provided for the period between 2017 and 2022.

Next-Generation Firewall Market Dynamics

Drivers

• Increasing IoT Trend
• Increasing internal and external threats
• High functionalities of the NGFW solutions

Restraints

• High cost of  systems
• High adoption of UTM solution in SMEs and SOHO’s

Opportunities

• Single vendor firewall deployment
• High growth opportunities in virtual NGFW

Challenges

• Presence of traditional firewalls
• Low level of awereness about advanced cyber threats.

Increasing IoT trend drives the global Next-Generation Firewall Market

As the world is becoming connected, the trend of IoT is also increasing. This has given the awareness and need to protect the network infrastructure. More devices are getting connected to the internet, including the TVs, mobile devices, and printers. According to a study conducted by Cisco, it has been stated that more than 15 billion devices are connected to the internet and are expected to grow to 500 billion by 2030. Many small organizations use such equipment in their premises to make their business processes more convenient. With the increase in the number of devices, a variety of cyber-attacks are also getting added to the threat landscape. For instance, on October 21st, 2016, a series of DDoS attacks affected the internet activities in the US. The attack was specifically targeted at the Domain Name System (DNS), which affected all the activities associated with the online transactions, including online shopping and social media interactions. Moreover, a recent survey from ESET stated that more than 40% of the Americans are not sure if their IoT devices are safe and secure from advanced cyber-attacks. Therefore, most of the SMEs are deploying advanced security solutions, such as NGFW and UTM for securing their business infrastructure; all such factors are driving the demand for the Next-Generation Firewall market. Security vendors such as Fortinet, SonicWall, Zscaler, and Palo Alto Networks offer solutions for any size of organization.

The following are the major objectives of the study.

• To define, describe, and forecast the NGFW market by component, organization size, vertical, and region
• To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
• To analyze the micromarkets1 with respect to the individual growth trends, prospects, and contributions to the total market
• To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market
• To forecast the market size of the market segments with respect to 5 main regions, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America
• To profile the key players of the Next-Generation Firewall market and comprehensively analyze their market size and core competencies2 in the market
• To track and analyze competitive developments, such as new product launches; mergers and acquisitions; and partnerships, agreements, and collaborations in the global market

During this research study, major players operating in the NGFW market in various regions have been identified, and their offerings, regional presence, and distribution channels have been analyzed through in-depth discussions. Top-down and bottom-up approaches have been used to determine the overall market size. Sizes of the other individual markets have been estimated using the percentage splits obtained through secondary sources such as Hoovers, Bloomberg BusinessWeek, and Factiva, along with primary respondents. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the Next-Generation Firewall Market. The figure below shows the breakdown of the primaries on the basis of the company type, designation, and region considered during the research study.

To know about the assumptions considered for the study, download the pdf brochure

The Next-Generation Firewall Market comprises a cybersecurity solution vendors involved in the research and product development; firewall providers; managed security service provides; and post-sales services providers. Key players considered in the analysis of the market are Cisco Systems (California, US), Fortinet, Inc. (California, US), Check Point Software (California, US), Palo Alto Networks (California, US), Barracuda Networks (California, US), Forcepoint (Texas, US), Zscaler (California, US), Juniper Networks (California, US), WatchGuard Technologies (California, US), and Sophos Ltd. (Abingdon, UK).

Major Developments in Next-Generation Firewall Market

• In February 2017, Cisco launched Cisco Firepower 2100 Series Next-Generation Firewall which provides threat defense and protects the critical data of banks and retail sector which have a huge volumes of business data.
• In February 2017, Palo Alto Networks launched a new availability in NGFW offerings with new hardware and virtual appliances. This will enable the customers to deploy these solutions from cloud and secure their data from various attacks and vulnerabilities. The company has launched these enhancements in New PA-5200 Series, New PA-800 Series, New PA-220 and VM-Series virtual firewall models of their NGFW products.
• In February 2017, Fortinet launched a new NGFW solution in its product portfolio named FortiGate 3980E and FortiGate 7060E. These appliances are chassis-based enterprise firewalls and provide highest performance by providing enhanced security.

Key Target Audience for Next-Generation Firewall Market

• Government agencies
• Cybersecurity vendors
• NGFW vendors
• Network solution providers
• Independent software vendors
• Consulting firms
• System integrators
• Value-Added Resellers (VARs)
• Information Technology (IT) security agencies
• Managed Security Service Providers (MSSPs)

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Scope of the Report

Report Metrics	Details
Market size available for years	2017–2022
Base year considered	2016
Forecast period	2017–2022
Forecast units	Value (USD)
Segments covered	Component, Organization size, Vertical and Region
Geographies covered	North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America
Companies covered	Cisco Systems (California, US), Fortinet, Inc. (California, US), Check Point Software (California, US), Palo Alto Networks (California, US), Barracuda Networks (California, US), Forcepoint (Texas, US), Zscaler (California, US), Juniper Networks (California, US), WatchGuard Technologies (California, US), and Sophos Ltd. (Abingdon, UK).

The research report segments the Next-Generation Firewall market into the following submarkets:

By Solution

• Hardware
• Virtual
• Cloud

Next-Generation Firewall Market By Service

• Professional Service
• Consulting Service
• Support and Maintenance
• Training and Education
• System Integration
• Managed Service

By Organization Size:

• Small and Medium Enterprises (SMEs)
• Large Enterprises

Next-Generation Firewall Market By Vertical:

• Banking, Financial Services, and Insurance (BFSI)
• Retail
• IT and Telecom
• Government and Public Utilities
• Healthcare
• Energy and Utilities
• Education
• Others (Travel, Transport, and Manufacturing)

Next-Generation Firewall Market By Region:

• North America
• Europe
• Asia Pacific (APAC)
• Middle East and Africa (MEA)
• Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Geographic Analysis

• Further breakdown of the North American Next-Generation Firewall market
• Further breakdown of the European market
• Further breakdown of the APAC market
• Further breakdown of the MEA market
• Further breakdown of the Latin American market

Company Information

Detailed analysis and profiling along with vendor DIVE matrix to get detailed information regarding their competitors on the basis of their product offerings and business strategies. The report reviews the major players who offer services. Additionally, the report will outline the findings and analysis on how well each vendor performs within MarketsandMarkets criteria.

The overall Next-Generation Firewall market is expected to grow from USD 2.39 billion in 2017 to USD 4.27 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 12.3%. Increasing IoT trend and increasing internal and external threats are the key factors driving the growth of this market.

Next-generation firewall is a process of collecting, archiving, managing, and reporting the logs, which are generated from various devices, such as firewalls, routers, servers, and switches. NGFW solutions deal with a huge amount of computer-generated log data. The main objective is to track the security events and network activities. With proper NGFW solutions, an organization can effectively manage logs while ensuring the integrity and improved business continuity.

The Next-Generation Firewall Market has been segmented, on the basis of solution, into hardware, virtual and cloud-based. The market for cloud-based solutions is expected to grow at the highest CAGR between 2017 and 2022. The market for cloud-based solutions is growing as more and more companies are adopting NGFW solutions and services to secure their business infrastructure from advanced threats such as, ransomware, APTs, zero day attacks, malware, and unauthorized accesses.

SMEs segment is expected to grow at the highest CAGR during the forecast period, owing to the increasing incidences of cyber-attacks on these enterprises as well as to deploy advanced security solutions by eliminating the traditional ones. However, the large enterprise's segment accounts for the largest share of the Next-Generation Firewall market in 2017.

NGFW solutions and services have been deployed across various industry verticals, including Banking Financial Services, and Insurance (BFSI); education; energy and utilities; government and public utilities; healthcare; IT and telecom; manufacturing; retail, and others. The BFSI vertical is expected to grow at the highest CAGR during the forecast period. However, the government and public utilities vertical is estimated to have the largest market size in 2017.

The global Next-Generation Firewall Market has been segmented on the basis of regions into North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America to provide a region-specific analysis in the report. The North American region, followed by Europe, is expected to become the largest revenue-generating region for NGFW service vendors in 2017. This is mainly due to the developed economies of the US and Canada, there is a high focus on innovations obtained from R&D and security technologies. The APAC region is expected to be the fastest-growing region in the market. The growth in this region is primarily driven by the increasing adoption of IoT devices and BYOD technologies within organizations.

Adoption of NGFW platform in BFSI, government and public utilities, and IT & Telecom industry verticals drive the growth of Next-Generation Firewall market

BFSI

Organizations in the BFSI vertical need security products and services that can protect employees, customers, assets, offices, branches, and operations. New and improved financial products and services are frequently introduced by organizations to enhance business operations and expand customer base, making the industry a lucrative target for fraudsters. With facilities such as smart banking, internet banking, and mobile banking, BFSI companies need to prioritize NGFW security solutions. Attacks such as DDoS, ransomware, advanced APTs, and other sophisticated attacks have been experienced in the BFSI vertical. To meet the evolving security demands of the BFSI vertical, network security industry players are coming up with innovative solutions to replace traditional solutions and provide additional features.

Government and public utilities

The implementation of eGovernance by the government agencies in several countries across the globe has led to an increased adoption of NGFW solutions in the government and defense segment. Government and public utilities agencies handle highly-secure and private data of individuals, departments, processes, and agencies. A large chunk of the content generated in this sector is undisclosed and highly classified. Government agencies are subject to stringent security policies and regulations, owing to the critical nature of the data. Thus, the deployment of NGFW solutions and services can minimize the risks associated with potential attacks on the government and public utilities vertical.

IT & Telecom

The IT and telecommunications vertical includes IT solutions and services providers, consulting companies, Internet Service Providers (ISPs), and communication companies. The companies in this industry are constantly evolving in terms of technology. The vertical is also an early adopter of innovative technological solutions. The IT and telecommunications companies are deploying large numbers of services through the web and mobile applications. Thus, major network security solutions providers are focusing on offering NGFW security solutions for IT and telecommunications companies. These solutions help organizations to align business strategies with email security plans and create awareness programs for employees and customers.

Critical questions the report answers:

• What are the new opportunities which the NGFW vendors are exploring?
• Who are the key players in the market and how intense is the competition?

Key players in the Next-Generation Firewall market include Cisco Systems (California, US), Fortinet, Inc. (California, US), Check Point Software (California, US), Palo Alto Networks (California, US), Barracuda Networks (California, US), Forcepoint (Texas, US), Zscaler (California, US), Juniper Networks (California, US), WatchGuard Technologies (California, US), and Sophos Ltd. (Abingdon, UK). These players are increasingly undertaking mergers and acquisitions, and product launches to develop and introduce new technologies and products in the market.

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