Network Security Firewall Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, India, UK, Germany - Size and Forecast 2024-2028

Network Security Firewall Market Forecast 2024-2028 

The network security firewall market size is projected to increase by USD 4.73 billion, at a CAGR of 13.27% between 2023 and 2028. Market growth hinges on several key factors, notably the rising uptake of cloud computing and the implementation of Bring Your Own Device (BYOD) policies. Moreover, there's an escalating demand for enhanced network security and privacy measures in response to evolving cyber threats. Additionally, the emergence of next-generation network security technologies, which integrate Artificial Intelligence (AI), Machine Learning (ML), and big data analytics, further drives market expansion. These factors collectively underscore the imperative for robust and innovative solutions to safeguard digital assets in an increasingly interconnected and data-driven landscape.

Moreover, the market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Barracuda Networks Inc., Dell Technologies Inc., Forcepoint LLC, Fortinet Inc., Hewlett Packard Enterprise Co., International Business Machines Corp., Juniper Networks Inc., Mavenir Systems Inc., Palo Alto Networks Inc., SAP SE, Sinch AB, Tata Sons Pvt. Ltd., Telefonica SA, WatchGuard Technologies Inc., Cellusys ltd, Huawei Technologies Co. Ltd., Infobip Ltd., and Omobio Pvt. Ltd . Additionally, Check Point Software Technologies Ltd. company offers network security firewall such as SS7 FIREWALL, DIAMETER FIREWALL, SIP FIREWALL, GTP FIREWALL, and SMS FIREWALL.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics 

In today's digital landscape, safeguarding networks against cyber threats is paramount. Network firewalls serve as the frontline defense, protecting against Distributed Denial of Service (DDoS) attacks and securing corporate emails. Enhanced by A2P messaging solutions, network security firewall solutions bolster cyber resiliency practices and ensure business continuity. Leveraging Network Function Virtualization (NFV), these firewalls offer scalability and flexibility. Professional services ensure seamless installation and ongoing maintenance, fostering a robust network safety infrastructure. With real-time streaming analysis, threats are identified swiftly, ensuring cybersecurity solutions are proactive and effective. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market  Driver

The increasing need for network security and privacy is the key factor driving the market. Enterprises from different industries, such as BFSI, healthcare, retail, telecommunications, and manufacturing, are deploying technologies, such as IoT and big data analytics, to increase productivity and reduce operational complexity. The deployment of advanced technologies, such as the cloud and IoT, is increasing the risk of cyberattacks. Some security challenges of the deployment of such technologies include distributed denial-of-service (DDoS) as well as malicious controllers and applications. Hence, enterprises are focusing on network security and data privacy. 

Moreover, emerging players in the market are innovating with next-generation firewall technologies, such as AI-driven threat detection and zero-trust security architectures, to cater to evolving customer needs and preferences. Further, the need for network security and data privacy, owing to the risk of cyberattacks, is increasing the demand for network security firewalls, which will drive market growth during the forecast period.

Significant Market Trends

Strategic partnerships and acquisitions among companies are the primary trends shaping the market. The competition among the existing market players is intense. Market players are entering into strategic partnerships and acquisitions with market players, technology service providers, and platform providers. Strategic partnerships and acquisitions help vendors in geographical expansion and enable them to gain access to technological expertise. For instance, in August 2022, Comcast Business and Fortinet, the world's leading provider of integrated, fully featured, and fully automated cybersecurity solutions, announced a strategic collaboration to provide enterprises with a new suite of Secure Access Service Edge and Security Service Edge-based security policy enforcement solutions.

Consequently, such a new set of solutions will enable enterprises to protect distributed workforces with a cloud-based security policy enforcement approach. Additionally, acquisitions enable market players to explore potential markets and generate revenue from a wider customer base. For instance, in June 2021, Cisco acquired Kenna Security Inc. to simplify protection, accelerating prioritization and remediation of risks. Such factors will drive the growth of the market during the forecast period.

Major Market Restrain

Shortage of skilled workforce and lack of knowledge about threats is the major challenge that affects the market expansion. The rising volume of sensitive data, such as financial transaction data, health records, and enterprise-related data, is causing concerns about cybersecurity. The number of cyberattacks has increased in the past decade. In 2021, approximately 447 million consumer records that contained sensitive information were accessed by hackers, which was an increase of 126% compared with 2020. In some cases, the identification of cybersecurity lapses is delayed. Further, enterprises are adopting next-generation security solutions, such as network security firewalls, with advanced capabilities to address safety concerns.

However, firewalls have certain limitations. Firewalls also cannot stop internal users from accessing websites with malicious codes. Hence, the education of users is critical. In addition, firewalls cannot prevent the misuse of passwords. The lack of a skilled workforce is also a challenge for the deployment of advanced security solutions in enterprises. The demand for professionals who are well-versed in the tools, techniques, and procedures (TTPs) used by hackers to perform behavior matching is growing. Thus, such factors may impede market growth during the forecast period.

Market Segmentation 

In the dynamic realm of cybersecurity, network firewalls play a pivotal role in fortifying digital infrastructures. By safeguarding corporate emails and A2P messaging solutions, they ensure robust email security. Integrated with Business Continuity Plan (BCP), they bolster cyber resiliency practices and provide fire protection against cyber threats. With an emphasis on speed and hardware compatibility, these preventive firewall maintenance infrastructure offer swift and seamless operation. Additionally, they enhance telecommunication security, facilitating secure VPN and SMS firewall connections for comprehensive cyber security solutions.

By Deployment

The market share growth by the on-premises segment will be significant during the forecast period.  In 2023, the on-premises segment dominated the market due to the ownership control it offers to organizations. Enterprises manage both hardware and system compatibility, providing complete control over their network security firewalls. On-premises deployment ensures resources are accessed solely through dedicated client servers, enhancing security compared to cloud-based models.

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The on-premises segment showed a gradual increase in the market share of USD 2.42 billion in 2018. Further, market players like Cisco, Juniper, and Dell Technologies provide on-premises firewall solutions. Benefits include enhanced internal network security, end-to-end VPNs, and multi-layered defense. Industries like BFSI, healthcare, and government sectors, driven by regulatory requirements like HIPAA, prioritize data protection, fostering the growth of the market during the forecast period. 

Market Segmentation By Type

The solutions?segment will account for the largest share of this segment.?In the ever-evolving realm of cybersecurity, network firewalls play a vital role in safeguarding organizations from diverse cyber threats. They encompass various types like traditional firewalls, next-generation firewalls (NGFWs), unified threat management (UTM) appliances, and cloud-based firewall services, each tailored to specific protection needs. Traditional firewalls provide basic traffic monitoring and control, while NGFWs offer advanced features like deep packet inspection and application awareness. UTM appliances consolidate multiple safety functions, ensuring comprehensive protection against cyber threats, and driving the growth of the market during the forecast period.

Regional Overview

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North America is estimated to contribute 39% to the growth of the global market during the forecast period. 
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market in North America is poised for steady growth, propelled by the surging demand for such solutions and the widespread adoption of BYOD policies and IoT devices. Heightened concerns, stemming from escalating cyberattacks and data breaches, are driving organizations to bolster their infrastructure. Regulatory mandates, like the National Cyber Strategy in the US, are compelling firms to invest in advanced safety measures.

Additionally, the region's digital transformation across BFSI, healthcare, IT, and retail sectors is fostering the uptake of IoT, AI, and cloud computing, further fueling demand for integrated safety solutions. As enterprises increasingly embrace the BYOD policy, the need for robust protection solutions, including firewalls, intensifies, leading to a burgeoning market landscape. Furthermore, the presence of key vendors like Cisco, Fortinet, and Palo Alto Networks is expected to bolster market expansion in the region during the forecast period 

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

Global Market Customer Landscape

Market Companies

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Cisco Systems Inc.: The company offers network security firewall gateways such as Data Center Firewalls, VPN Remote Access, Small or Medium Business Firewall, Industrial or Ruggedized Firewalls OT ICS, and others.

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028

• Deployment Outlook
  • On-premises
  • Cloud-based

• Type Outlook
  • Solutions
  • Services

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview:

The network firewall market is witnessing robust growth, driven by the increasing demand for security services to combat cyber risks and network intrusions. With the proliferation of telecom service providers and the evolution of signaling network technologies like SS7 signaling system and IPv6 protocols, the need for firewall-as-a-service (FWaaS) and SASE platforms is on the rise. Security Operations Centers (SOCs) play a crucial role in monitoring external and internal networks to detect and prevent malware and denial-of-service (DoS) attacks. Additionally, cloud firewall solutions and SMS firewall solutions offer consistent firewall coverage to safeguard against phishing emails, spam messages, and Diameter attacks. This market's trajectory underscores the importance of network security providers in safeguarding against emerging threats in the digital landscape.

Further, the network firewall market is witnessing significant growth amidst the evolving signaling network evolution and increasing reliance on Web applications and Cloud technologies. As cyber threats like scams and ransomware attacks become more sophisticated, organizations are prioritizing robust security protocols and security components such as cloud firewall solutions and SASE platforms. These solutions are essential for detecting and preventing malware, Distributed denial-of-service (DDoS) attacks, and account hijacking. Additionally, with the proliferation of Internet of Things devices, user location tracking and protection against Denial of Service (DoS) attacks are paramount. Mobile security technologies play a crucial role in safeguarding against emerging threats like coin mining and ensuring comprehensive network security.

Market Scope
Report Coverage	Details
Page number	166
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 13.27%
Market Growth 2024-2028	USD 4.73 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	12.29
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 39%
Key countries	US, China, India, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Barracuda Networks Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., Dell Technologies Inc., Forcepoint LLC, Fortinet Inc., Hewlett Packard Enterprise Co., International Business Machines Corp., Juniper Networks Inc., Mavenir Systems Inc., Palo Alto Networks Inc., SAP SE, Sinch AB, Tata Sons Pvt. Ltd., Telefonica SA, WatchGuard Technologies Inc., Cellusys ltd, Huawei Technologies Co. Ltd., Infobip Ltd., and Omobio Pvt. Ltd
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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