Next-generation Firewall Market by Offering (Hardware, Software, Services), Deployment Mode (On-premises, Cloud/Virtual), Organization Size (Large Enterprises, SMEs), Vertical (BFSI, Government, Other Verticals) and Region - Global Forecast to 2028
Updated on : July 11, 2024
Next Generation Firewalls (NGFWs) Market Size
The Next Generation Firewalls Market size is expected to rise at a compound annual growth rate (CAGR) of 11.4%, from USD 5.0 billion to USD 8.6 billion between 2023 and 2028. The increasing emphasis on regulatory compliance in the evolving cybersecurity landscape propels NGFWs providers like Palo Alto Networks, Cisco, and Fortinet to integrate features such as application control and intrusion prevention. As global data protection laws, like GDPR and CCPA, become more stringent, the surge in demand for compliance-driven solutions places NGFWs providers at the forefront. They offer tailored solutions, addressing the complex regulatory landscape and securing enterprises against evolving cyber threats.
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Next Generation Firewall Market Dynamics
Driver: Surge in remote work drives demand for next-generation firewall solutions
The proliferation of remote work has spurred a heightened demand for advanced security solutions, particularly Next-Generation Firewalls. This shift has intensified the need for robust protection against evolving cyber threats in the decentralized workforce landscape. NGFWs, equipped with advanced threat detection and prevention mechanisms, play a pivotal role in safeguarding organizations' networks and data. With the surge in phishing attacks targeting remote employees, the imperative for sophisticated security measures has never been clearer. Notably, reports such as the March 2022 Alliance Virtual Offices report, which revealed a staggering 238% increase in cyberattacks during the COVID-19 pandemic, and a 2022 study by IBM indicating a 72% surge in cyberattacks targeting remote workers in the same year, underscore the heightened cybersecurity challenges associated with the global shift to remote work. To address these challenges, companies strategically deploy advanced NGFW solutions such as Barracuda CloudGen Firewall and Cisco Secure Firewall, ensuring secure remote access and data transmission in the evolving remote work environment.
Restraint: Traditional firewall loyalty challenges next-generation firewall adoption
In the realm of Next-Generation Firewalls, a significant barrier to widespread adoption lies in the resistance to change from conventional firewall solutions. Many organizations, deeply entrenched in familiar legacy firewall systems, exhibit hesitancy toward transitioning to newer technologies. This reluctance is fueled by concerns about potential risks, disruption to existing operations, and a lack of awareness regarding the enhanced capabilities of NGFWs in addressing modern cyber threats. For example, migrating from 'stateful' inspection firewalls to NGFWs may trigger uncertainties and reluctance due to perceived challenges in the transition process. Overcoming this resistance necessitates comprehensive education, clear demonstrations of benefits, and effective communication strategies to instill confidence in the superior efficacy of NGFWs solutions compared to traditional alternatives.
Opportunity: Cloud adoption drives demand for next-generation firewalls
The surge in cloud adoption across industries intensifies the need for Next-Generation Firewalls as organizations prioritize securing their cloud-based infrastructures. From Software as a Service (SaaS) to Infrastructure as a Service (IaaS), cloud services necessitate robust security measures to protect sensitive data and applications. NGFWs, equipped to inspect encrypted traffic, manage application usage, and identify advanced threats, emerge as vital components of cloud security strategies. Leading cloud providers like AWS and Microsoft Azure emphasize the integration of NGFWs for heightened protection. For instance, the shared responsibility model in cloud security underscores the importance of customers implementing NGFWs to fortify their security posture. As cloud adoption continues to accelerate for its efficiency and scalability, the demand for NGFWs intensifies to ensure secure and compliant cloud environments.
Challenge:Crucial Need for Robust Evaluation in Next-Generation Firewall Security
Ensuring the effectiveness of Next-Generation Firewalls (NGFWs) necessitates consistent and comprehensive testing and auditing procedures. The evolving landscape of cyber threats requires stringent evaluation protocols to ensure NGFWs can effectively counter sophisticated attacks. Without standardized testing frameworks, vulnerabilities may remain undetected, leaving organizations susceptible to breaches. For instance, while guidelines such as those provided by the OWASP exist for web application firewalls, a lack of uniform standards within the broader NGFW domain impedes the establishment of performance and security benchmarks. This absence of consistency poses risks, as organizations may deploy NGFW solutions without a clear understanding of their resilience in diverse threat scenarios.
Next Generation Firewall Market Ecosystem
By vertical, healthcare is expected to grow at the highest CAGR during the forecast period.
The healthcare segment is experiencing the fastest growth rate in the Next-Generation Firewall (NGFW) marke due to factors such as increased reliance on technology and stricter regulations. Healthcare organizations increasingly store and transmit sensitive patient data electronically, rendering them vulnerable to cyberattacks. NGFWs offer advanced security features like intrusion detection, deep packet inspection, and application control to safeguard this data. Moreover, regulations like HIPAA in the US and GDPR in Europe mandate strong data security measures, further emphasizing the need for NGFWs to ensure compliance.
With the rise of connected medical devices and wearables, more entry points for attackers emerge, underscoring the importance of NGFWs in securing these devices and associated networks. As healthcare organizations become more cognizant of cyber threats, they invest in cybersecurity solutions like NGFWs to fortify their defenses and protect patient information, thereby driving the significant growth witnessed in this sector.
By deployment mode, the cloud/virtual is expected to grow at the highest CAGR during the forecast period.
Cloud/Virtual deployment mode is poised to experience the most rapid growth, driven by its ability to address critical business needs within the next-generation firewall market. The agility and scalability offered by cloud-based NGFWs cater to dynamic environments and changing security requirements, ensuring adaptability to fluctuating network traffic. Significantly, eliminating dedicated hardware reduces upfront costs, ongoing maintenance expenses, and power consumption, enhancing affordability for organizations of all sizes. Cloud deployment's simplified management, facilitated by cloud providers, allows IT teams to focus on strategic security initiatives, streamlining deployment and configuration across distributed locations. The accessibility of cloud-based NGFWs from anywhere with an internet connection fosters secure remote access, which is particularly advantageous for organizations with dispersed workforces. Moreover, the rapid updates and threat detection capabilities delivered by cloud providers and seamless integration with other cloud-based security tools contribute to a comprehensive cybersecurity posture, making cloud/virtual deployment mode the fastest-growing segment in the NGFW market.
By region, North America accounts for the highest market size during the forecast period.
The North American region dominates the Next-Generation Firewall market, boasting the largest market share due to the presence of leading NGFW vendors, including Palo Alto Networks, Fortinet, and Check Point Software Technologies, which fosters a vibrant ecosystem for NGFW development and adoption. Moreover, stringent data security regulations such as HIPAA, GBLA, CISA, and GDPR are also driving the growth for advanced technologies like NGFWs in this region.
High IT spending capacity and mature cybersecurity awareness further contribute to the region's dominance, with businesses readily investing in sophisticated NGFW solutions to safeguard critical data against evolving cyber threats. Additionally, the high rate of cloud adoption in North America fuels the demand for cloud based NGFW deployments, solidifying the region's position as a key player in the NGFW market landscape.
The key players in the next generation firewall market are Palo Alto Networks (US), Cisco (US), Fortinet (US), Check Point (Israel), Juniper Networks (US), Barracuda Networks (US), SonicWall (US), Zscaler (US), Forcepoint (US), Hillstone Networks (US), and others.
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Report Metrics |
Details |
Market size available for years |
2017-2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Next-Generation Firewall Market value in 2028 |
USD 8.6 Billion |
Next-Generation Firewall Market value in 2023 |
USD 5.0 Billion |
Next-Generation Firewall Market Growth Rate |
11.4% CAGR |
Segments Covered |
Offering, Application, Organization Size, Deployment Mode, Vertical, And Region |
Geographies covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Companies covered |
Major vendors in the global next generation firewall market include Palo Alto Networks (US), Cisco (US), Fortinet (US), Check Point (Israel), Juniper Networks (US), Barracuda Networks (US), SonicWall (US), Zscaler (US), Forcepoint (US), Hillstone Networks (US), Versa Networks (US), NordLayer (US), Cato Networks (Israel), CrowdStrike (US), Trend Micro (Japan), Huawei (China), Sophos (UK), Atrity (India), Easi (Belgium), Zyxel Networks (India), Nomios (Netherlands), WatchGuard (US), Sangfor (China), GajShield (India), and H3C (China). |
The study categorizes the next generation firewall market by segments - offering, application, organization size, deployment mode, vertical, and region.
By Offering:
- Hardware
- Software
- Services
By Application:
- Application Visibility and Control
- Intrusion Detection & Prevention System (IDS/IPS)
- Content Filtering
- User And Identity Awareness
- SSL/TLS Inspection
- Advanced Threat Protection
- Other Applications
By Organization Size:
- Large Enterprises
- Small and Medium Enterprises (SMEs)
By Deployment Mode:
- On-Premises
- Cloud/Virtual
Vertical:
- BFSI
- Government
- Healthcare
- Telecommunications
- IT and ITeS
- Retail and eCommerce
- Energy and Utilities
- Manufacturing
- Other Verticals
By Region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
Recent Developments
- In September 2023, Cisco unveiled Secure Firewall 4200 Series appliances and Threat Defense 7.4 software, introducing cutting-edge capabilities for new-normal firewalling. Leveraging inference-based traffic classification and collaboration across the Cisco portfolio, it addresses the challenges of hybrid work and encrypted traffic profiles, offering enhanced threat visibility and streamlined operations.
- In May 2023, Palo Alto Networks launched Cloud NGFW for Azure, integrating its ML-powered next-generation Firewall as a fully managed Azure-native ISV service. This solution brings Advanced Threat Prevention, URL Filtering, WildFire, and DNS Security powered by AI and ML. It effectively halts known, unknown, and zero-day threats, facilitating secure and accelerated application migration to Microsoft Azure.
- In November 2022, Fortinet introduced the FortiGate 1000F series, a cutting-edge next-generation firewall (NGFW) boasting unparalleled performance and energy efficiency. Leveraging purpose-built security processing units, it offers 7.4x faster firewall throughput, 7x higher IPsec VPN performance, and advanced threat protection, ensuring robust security for enterprise data centers.
- In January 2022, Check Point and NVIDIA partnered to integrate Quantum Lightspeed hyper-fast firewalls with NVIDIA's advanced ASIC, achieving line-rate firewall performance at network speed. This partnership introduces a significant network security revolution, offering 10x lower latency and 5x faster security throughput, with 20x better price performance than competitors.
Frequently Asked Questions (FAQ):
What are the opportunities in the global next-generation firewall market?
The surge in cloud service adoption and the infusion of advanced technologies, such as zero trust and machine learning, are a few factors contributing to the growth and new opportunities for the next-generation firewall market.
What is the definition of the next-generation firewall market?
Cisco states, “A next-generation firewall (NGFW) is a network security device that provides capabilities beyond a traditional, stateful firewall. While a traditional firewall typically provides stateful inspection of incoming and outgoing network traffic, a next-generation firewall includes additional features like application awareness and control, integrated intrusion prevention, and cloud-delivered threat intelligence.
Which region is expected to show the highest market share in the next generation firewall market?
North America is expected to account for the largest market share during the forecast period.
What are the major market players covered in the report?
Major vendors, namely, include Palo Alto Networks (US), Cisco (US), Fortinet (US), Check Point (Israel), Juniper Networks (US), Barracuda Networks (US), SonicWall (US), Zscaler (US), Forcepoint (US), Hillstone Networks (US).
What is the current size of the global next generation firewall market?
The global next generation firewall market size is projected to grow from USD 5.0 billion in 2023 to USD 8.6 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 11.4% during the forecast period. .
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The study involved major activities in estimating the current market size for the next generation firewall market. Exhaustive secondary research was done to collect information on the next generation firewall industry. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Different approaches, such as top-down and bottom-up, were employed to estimate the total market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the next generation firewall market.
Secondary Research
The market for the companies offering next generation firewall solutions and services is arrived at by secondary data available through paid and unpaid sources, analyzing the product portfolios of the major companies in the ecosystem, and rating the companies by their performance and quality. Various sources were referred to in the secondary research process to identify and collect information for this study. The secondary sources include annual reports, press releases, investor presentations of companies, white papers, journals, certified publications, and articles from recognized authors, directories, and databases.
In the secondary research process, various secondary sources were referred to for identifying and collecting information related to the study. Secondary sources included annual reports, press releases, and investor presentations of next generation firewall vendors, forums, certified publications, and whitepapers. The secondary research was used to obtain critical information on the industry’s value chain, the total pool of key players, market classification, and segmentation from the market and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the next generation firewall market.
After the complete market engineering (calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. Primary research was also conducted to identify the segmentation types, industry trends, competitive landscape of next generation firewall solutions offered by various market players, and key market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key player strategies.
In the complete market engineering process, the top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform the market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list the key information/insights throughout the report.
Following is the breakup of the primary study:
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Market Size Estimation
Top-down and bottom-up approaches were used to estimate and validate the size of the global next generation firewall market and estimate the size of various other dependent sub-segments in the overall next generation firewall market. The research methodology used to estimate the market size includes the following details: key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of the top market players, and extensive interviews were conducted for key insights from the industry leaders, such as CEOs, VPs, directors, and marketing executives.
All percentage splits and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data is consolidated and added to detailed inputs and analysis from MarketsandMarkets.
Infographic Depicting Bottom-Up And Top-Down Approaches
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Data Triangulation
After arriving at the overall market size using the market size estimation processes explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
Cisco states, “A next-generation firewall (NGFW) is a network security device that provides capabilities beyond a traditional, stateful firewall. While a traditional firewall typically provides stateful inspection of incoming and outgoing network traffic, a next-generation firewall includes additional features like application awareness and control, integrated intrusion prevention, and cloud-delivered threat intelligence.”
Key Stakeholders
- 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)
Report Objectives
- To define, describe, and forecast the next generation firewall market based on - offering, application, organization size, deployment mode, vertical, and region.
- To define, describe, and forecast the next generation firewall market by – offering, application, organization size, deployment mode, vertical, and region.
- To forecast the market size of five main regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and Latin America
- To analyze the subsegments of the market concerning individual growth trends, prospects, and contributions to the overall market.
- To provide detailed information related to the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the next generation firewall market.
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the next generation firewall market.
- To profile the key players of the next generation firewall market and comprehensively analyze their market size and core competencies 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 next generation firewall market.
Customization Options
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 100% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern and African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Next-generation Firewall Market