Next-Generation Firewall Market Report 2025

The next-generation firewall market size has grown strongly in recent years. It will grow from $5 billion in 2024 to $5.48 billion in 2025 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to transition from traditional firewalls, rise of advanced threats, increased emphasis on application security, mobile and remote access security needs, evolving network complexity.

The next-generation firewall market size is expected to see rapid growth in the next few years. It will grow to $9.23 billion in 2029 at a compound annual growth rate (CAGR) of 13.9%. The growth in the forecast period can be attributed to rise in cyber threats complexity, remote workforce security needs, cloud migration and hybrid environments, zero trust architecture implementation, IoT device security. Major trends in the forecast period include IoT security focus, machine learning and AI integration, SSL/TLS inspection capability, enhanced user identity management, zero trust architecture adoption, cloud-based security solutions.

The increasing demand for advanced cybersecurity solutions is anticipated to drive the growth of the next-generation firewall market in the future. Cybersecurity solutions encompass the technologies, procedures, and safeguards designed to protect systems, networks, applications, devices, and data from cyberattacks. Next-generation firewalls represent the third generation of firewall technology, specifically designed to tackle advanced security threats at the application level. For example, in November 2023, the 2023 ASD Cyber Threat Report released by the Australian Signals Directorate, a federal agency in Australia, highlighted that nearly 94,000 cybercrime reports were submitted to ReportCyber during the 2022-23 financial year, marking a 23% increase compared to the previous year. Additionally, the financial impact of cybercrime on businesses surged by 14%, with small businesses averaging losses of $46,000, medium businesses losing about $97,200, and large businesses facing losses of $71,600. Hence, the rising demand for advanced cybersecurity solutions is fueling 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.

Major companies in the next-generation firewall market are prioritizing the development of machine learning-powered firewalls to enhance threat detection, strengthen network security, and automate responses to emerging cyber threats. Machine learning (ML)-powered next-generation firewalls are advanced security solutions that incorporate ML technologies to improve their capability to identify and mitigate cyber threats. These firewalls utilize the latest PAN-OS 11 Nova, specifically engineered to counter highly evasive cyber threats effectively. For instance, in November 2022, Palo Alto Networks, Inc., a US-based firm, introduced the PA-5400 and PA-400 Series of ML-Powered Next-Generation Firewalls (NGFWs). The PA-5400 Series is tailored for high-performance environments, with models capable of achieving up to 61.5 Gbps in threat prevention throughput. In contrast, the PA-400 Series is designed for smaller businesses and distributed enterprises, offering flexible deployment options and a fanless design for quieter operation. Both series leverage advanced machine learning techniques for proactive threat detection and feature the Single Pass Parallel Processing (SP3) architecture to ensure consistent performance.

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 include Cisco Systems Inc., Barracuda Networks Inc., Check Point Solution Technologies Ltd., Juniper Networks Inc., Huawei Technologies Co. Ltd., Palo Alto Networks Inc., Forcepoint LLC, WatchGuard Technologies Inc., SonicWall Inc., Hillstone Networks Co, Sangfor Technologies, Fortinet Inc., Sophos Technologies Pvt. Ltd., Untangle Inc., GajShield Infotech Pvt. Ltd., SEQRITE, Stormshield SAS, AhnLab Inc., Comodo Group Inc., Netgate Inc., OPNsense, pfSense, Smoothwall Ltd.

North America was the largest region in the next-generation firewall market in 2024. 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.

A next-generation firewall (NGFW) is a type of deep-packet inspection firewall that goes beyond simple port or protocol inspection and blocking. It includes application-level inspection, intrusion prevention, and the use of external intelligence to enhance security measures. NGFWs operate at Layer 7, offering application filtering along with deep packet filtering, allowing them to track and prevent suspicious or malicious behavior.

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 next-generation firewall market includes revenues earned by entities by providing URL (uniform resource locator) filtering, malware detection, encryption and antivirus protection features. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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