Next-Generation Firewall Global Market Report 2024

The next-generation firewall market size has grown rapidly in recent years. It will grow from $4.62 billion in 2023 to $5.12 billion in 2024 at a compound annual growth rate (CAGR) of 10.7%. The expansion observed during the historical period can be attributed to several factors, including the transition from traditional firewalls to next-generation firewalls (NGFWs), the rise of advanced and sophisticated cyber threats, an increased emphasis on application security, the growing need for mobile and remote access security, and the continuous evolution of network complexity.

The next-generation firewall market size is expected to see rapid growth in the next few years. It will grow to $8.01 billion in 2028 at a compound annual growth rate (CAGR) of 11.9%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing complexity of cyber threats, the heightened security needs for remote workforces, the migration to cloud and hybrid environments, the implementation of zero trust architecture, and the focus on securing Internet of Things (IoT) devices. Key trends expected in the forecast period include a heightened emphasis on IoT security, the integration of machine learning and artificial intelligence, enhanced SSL/TLS inspection capability, improved user identity management, widespread adoption of zero trust architecture, and the implementation of cloud-based security solutions.

The anticipated surge in demand for advanced cybersecurity solutions is set to drive the future growth of the next-generation firewall market. Cybersecurity solutions encompass the use of technologies, procedures, and safeguards to defend against cyberattacks targeting systems, networks, programs, devices, and data. Positioned as the third generation of firewall technology, a next-generation firewall addresses advanced security threats at the application level. For instance, a report from Tech Target in December 2022 revealed 3,932 publicly disclosed breach events during the year. By the end of September 2021, there had already been a 17% increase in breaches compared to the total for 2020. Thus, the rising demand for advanced cybersecurity solutions is a key driver propelling the growth of the next-generation firewall market.

The growing proliferation of Internet of Things (IoT) devices is expected to fuel the expansion of the next-generation firewall market. IoT devices, equipped with sensors, software, and other technologies to connect and exchange data over the Internet, play a crucial role in enhancing security measures within interconnected IoT ecosystems. Next-generation firewalls are designed to address the unique challenges presented by diverse and interconnected IoT environments, ensuring comprehensive protection against evolving cyber threats and unauthorized access. A report from IoT Analytics in May 2022 indicated a significant increase, with 12.2 billion active endpoints in 2021, marking an 8% rise in total IoT connections. The IoT industry is projected to witness an 18% increase, reaching 14.4 billion active connections in 2022. Therefore, the growing number of IoT devices is a driving force behind the expansion of the next-generation firewall market.

Product innovation emerges as a prominent trend gaining traction in the next-generation firewall market, with major companies focusing on developing new products to fortify their market position. For instance, Fortinet Cybersecurity Corporation, a US-based company specializing in cybersecurity solutions, introduced FortiGate 3500F in August 2021. This latest next-generation firewall caters to the needs of hybrid data centers, offering automatic threat protection post-decryption, zero trust network access (ZTNA), and proxy capabilities. FortiGate 3500F introduces additional security features, including anti-virus, mail security, anti-DDoS, IPS, and anti-malware solutions. It represents an industry-first by natively interacting with FortiGuard Security Services.

Major companies in the next-generation firewall market are intensifying their focus on introducing innovative cybersecurity solutions, such as the Cloud Next-Generation Firewall (NGFW), to gain a competitive edge. The Cloud NGFW is an advanced cybersecurity solution designed to secure cloud environments by delivering advanced threat detection, application visibility, and granular access controls. For example, Palo Alto Networks, a US-based computer and network security company, launched the Cloud Next-Generation Firewall (NGFW) for Microsoft Azure customers in May 2023. This groundbreaking offering is the first ISV next-generation firewall service natively integrated into Azure, developed through collaboration between Microsoft and Palo Alto Networks. The Cloud NGFW for Azure provides top-notch security and seamless integration with native Azure services, offering easy management and scalability within the Azure ecosystem.

In March 2023, Cisco Systems, Inc., a US-based technology company, acquired Valtix Inc. for an undisclosed amount, aiming to expand its product portfolio of cloud-native security solutions. Valtix Inc. is a US-based software development company offering a multi-cloud network security platform as a service.

Major companies operating in the next-generation firewall market report are Cisco Systems Inc., Barracuda Networks Inc., Check Point Solution Technologies Ltd., Juniper Networks Inc., Huawei Technologies Co. Ltd., Palo Alto Networks Inc., Forcepoint LLC, Zscaler Inc., WatchGuard Technologies Inc., SonicWall Inc., Cloudflare Inc., Hillstone Networks Co, Sangfor Technologies, Fortinet Inc., Sophos Technologies Pvt. Ltd., Dell Technologies Inc., Untangle Inc., FireEye Inc., McAfee LLC, Trend Micro Inc., F5 Networks Inc., GajShield Infotech Pvt. Ltd., SEQRITE, Stormshield SAS, AhnLab Inc., Comodo Group Inc., Darktrace Ltd., Netgate Inc., OPNsense, pfSense, Smoothwall Ltd.

North America was the largest region in the next-generation firewall market in 2023. Asia-Pacific is expected to be the fastest-growing region in the next-generation firewall market report during the forecast period. The regions covered in the next-generation firewall market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the next-generation firewall market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The major components of next-generation firewalls are solutions and services. Solutions refer to computer programs or information technology systems owned or purchased by the Department of Revenue to carry out specific tasks. These solutions can be hardware-based, virtual, or cloud-based. The associated services include professional services, managed services, support and maintenance, training and education, consulting services, system integration, and others. These services find application in large as well as small and medium-sized enterprises (SMEs). Various industry verticals benefiting from NGFWs include BFSI, retail, IT and telecommunications, healthcare, energy and utilities, manufacturing, government, and others.

The next-generation firewall market research report is one of a series of new reports that provides next-generation firewall market statistics, including next-generation firewall industry global market size, regional shares, competitors with a next-generation firewall market share, detailed next-generation firewall market segments, market trends and opportunities and any further data you may need to thrive in the next-generation firewall industry. This next-generation firewall market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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