Enterprise Firewall Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The enterprise firewall market is expected to grow at a CAGR of 9.8% over the forecast period. In the current market scenario, used enterprise firewalls have lost their viability because traditional systems cannot handle the high level of threats posed by modern hacking methods.

Key Highlights

• Enterprise firewalls are the basic units of network security. They examine the flow of inbound and outbound data packets in an enterprise network against a set of predefined values to detect any malicious activity in the network.
• The ongoing secular trend of increasing network capacity, specialization for 5G core, operational technology (OT), and IoT security, and the evolution of malware and threat detection are driving demand for the firewall market.
• With the rise of cloud technology, firewalls are now being put in place. These firewalls offer a bundled solution that makes sure a firewall is available on any device, handles any traffic load, and makes sure the same policies are followed across the organization.
• The cost factor is the major restraining factor for enterprise firewalls and their users. Acquiring firewalls can be costly for organizations. The cost varies according to the type of firewall an organization wants to deploy. Hardware firewalls will cost more than software firewalls due to their installation and maintenance charges.
• COVID-19 accelerated the adoption of cloud infrastructure and services, which made businesses shift to cloud-based firewalls and firewall-as-a-service. During the pandemic, many companies had to let people work from home. This increased the need for strong security solutions.

Key Market Trends

Cloud Services to have High Growth Rate due to enhanced adoption of Industry 4.0

• Every day, the number of people using cloud computing grows. This is because cloud computing offers a flexible work environment, easy data sharing, and efficient data storage, which no other traditional computing or data storage system can match.
• Consequently, numerous companies are heading toward cloud computing, placing their data and communications in the cloud. One of the most significant factors slowing the growth of cloud computing is security concerns.
• The increasing demand for network security, especially in the manufacturing sector, is primarily due to the rapid adoption of Industry 4.0 policies. Also, IoT applications are expected to create a huge demand for enterprise firewall systems.
• With the rise of cloud technology, firewalls are now being put in place. These firewalls offer a bundled solution that makes sure a firewall is available on any device, handles any traffic load, and makes sure the same policies are followed across the organization.
• Furthermore, cloud computing is estimated to grow robustly during the forecast period. The increased adoption of cloud-based software has provided a number of benefits for companies from various industries, including the ability to use software from any device, either through a native app or a browser. The growth of cloud computing is directly driving the growth of the enterprise firewall market, as, without a security layer, the valuable data of organizations is at stake as data breaches are increasing.

North America Occupies the Largest Market Share

• The North American region has the largest market share right now because businesses there care a lot about security and continue to use high-performing network security solutions.
• Cloud solutions are very important to the growth of enterprise firewalls in this region because they are cost-effective, automatically integrate, require little IT investment, and are easy to access.
• The latest technological breakthroughs have also assisted in the advancement of the enterprise firewall market. These advancements can make overall processes more efficient and significantly improve accuracy in numerous applications. There have been a series of new product launches, mergers, and acquisitions in the North American region to take advantage of this opportunity.
• Moreover, cyberattacks in the North American region, especially in the United States, are rising rapidly. They have reached an all-time high, primarily owing to the rapidly increasing number of mobile devices in the region. According to IBM, in the United States, the average cost of a data violation amounted to 9.44 million U.S. dollars in 2022, up from 9.05 million U.S. dollars in 2021.
• In November 2022, Microsoft Azure announced the launch of DDoS IP protection for SMBs. DDoS IP Protection for SMBs is designed to provide enterprise-grade DDoS (distributed denial of service) protection. The new product can help companies defend against L3/L4 DDoS attacks with always-on monitoring and adaptive tuning designed to ensure the application is always protected.

Competitive Landscape

The enterprise firewall market is highly competitive due to the presence of several international and local players. Cisco Systems, Juniper Networks, Palo Alto Networks, and Cisco Systems are all big names in the enterprise firewall market.

In November 2022, Sophos, a global cybersecurity service provider, announced the launch of new Sophos Firewall capabilities to meet the complex and demanding needs of distributed and enterprise edge computing. The updated firewalls would have better performance that speeds up the inspection of encrypted traffic, dynamic traffic routing for Internet Protocol version 6 (IPv6), more resilience with software-defined wide area network (SD-WAN) load balancing and high-availability improvements, and seamless integration with Microsoft Azure Active Directory.

In March 2022, Palo Alto Networks and Amazon Web Services (AWS) announced that they would be working together to launch the new Palo Alto Networks Cloud NGFW for AWS. This is a managed Next-Generation Firewall (NGFW) service that is meant to make it easier to secure AWS deployments and allow organizations to innovate faster while staying safe.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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