Next-Generation Firewall Market Size, Share, Opportunities, And Trends By Type (Rugged Firewalls, Data Center Firewalls, Cloud Firewall-as-a-Service), By Enterprise Size (Small & Medium, Large), By End User (BFSI, Government, IT & Telecommunications, Retail, Others), And By Geography - Forecasts From 2023 To 2028

The next-generation firewall market is estimated to grow at a CAGR of 10.48% during the forecast period.

A next-generation firewall represents the third iteration of firewall technology. It incorporates the characteristics of a classic firewall and extends its capabilities with additional network device filtering features which include the use of an application firewall with in-line deep packet inspection and an intrusion prevention system. The next-generation firewalls can be categorized into rugged firewalls, data center firewalls, and cloud firewall-as-a-service. The escalation in cyberattacks, coupled with the burgeoning adoption of cloud services, constitutes the primary driving force propelling the growth of the next-generation firewall industry.

Increasing cyberattacks bolster the next-generation firewall market growth.

Next-generation firewalls are increasingly being used to counter the growing cybercrime due to their advanced capabilities, such as deep packet inspection, intrusion prevention systems, and application-level inspection. These features allow next-generation firewalls to detect and block complex threats more efficiently than traditional firewalls. The proliferation of Internet of Things (IoT) practices with a lack of cybersecurity measures has expanded the potential threat of cybercrimes.  For instance, according to the Australian Cyber Security Centre, in 2021-2022, a total of 76,000 reports of cybercrime were filed, marking a 13% surge from the numbers registered in the preceding year.

Growing cloud adoption drives the next-generation firewall market.

Next-generation firewalls are essential for cloud services due to their advanced capabilities in addressing the unique security challenges of cloud environments. These firewalls offer superior threat detection, application visibility, and control, which enables organizations to safeguard their cloud-based assets and data effectively. Cloud services continue to experience significant growth propelled by government initiatives promoting digital transformation and cloud adoption which has propelled the demand for next-generation firewalls. For instance, in November 2022, Google Cloud, in collaboration with the Data Security Council of India (DSCI), unveiled the 'Secure with Cloud' initiative. This program aims to demystify cloud security, facilitate cloud adoption, and digital transformation within India

The strategic acquisition has positively impacted the next-generation firewall market growth.

Strategic initiatives such as acquisitions and collaborations done by major companies have allowed them to broaden their technology portfolio and enhance their capabilities to provide advanced, robust security solutions. This, in turn, has increased their competitive edge which is driving the need for next-generation firewall solutions. For instance, in March 2023, Cisco acquired Valtix to boost its next-generation firewall capabilities across multiple clouds. Valtix's distinctive strategy offers a unified policy for multi-cloud environments and safeguards each specific workload, which may afford Cisco an edge over its competitors. Also, in May 2021, Aryaka acquired Secucloud GmbH, a company that offers an innovative all-in-one global platform, designed to deliver firewall-as-a-service functionality via the cloud.

North America is anticipated to dominate the next-generation firewall market.

North America will hold a significant share of the next-generation firewall market primarily due to the continuous introduction of cutting-edge firewall products by industry giants which has propelled the market's growth. For example, in March 2021, SonicWall broadened its next-generation firewall portfolio with the addition of a new enterprise-grade appliance, featuring specialized capabilities designed to enhance threat protection in closed-network government environments. Also, the rising prevalence of cybercrimes in the leading economies of the region has further necessitated the need for next-generation firewalls. For instance, according to the Check Point Software report, in 2022, there was a surge in cyberattacks in Canada, marking a significant increase of 20% compared to the previous year. Moreover,

Data privacy concerns may restrain the next-generation firewall market.

The function of next-generation firewalls, which involves closely monitoring and analyzing network traffic, can potentially lead to concerns related to data privacy. Particularly in regions with stringent privacy regulations, the extensive scrutiny of data passing through the network can evoke apprehension about the privacy and confidentiality of sensitive information. These firewalls inherently need access to a vast array of data to perform their duties effectively, and this aspect could be viewed as intrusive or overly invasive, sparking concerns over data misuse or unauthorized access. Businesses, wary of falling afoul of these privacy laws and incurring penalties, might hesitate to adopt next-generation firewalls, thereby restraining next-generation industry growth.

Key Developments

• May 2023: Palo Alto Networks' collaborative efforts with Microsoft enabled the former’s Cloud NGFW firewall service to be natively integrated into Azure. This service brings together the advanced security capabilities of Palo Alto Networks' next-generation firewall technology with the ease of use and scalable nature inherent to cloud-native management.
• May 2023: Aviatrix introduced its Distributed Cloud Firewall, designed to unify firewall infrastructure by simultaneously securing networks within both cloud and conventional enterprise networking environments. This innovative solution aims to streamline and enhance network security, bringing together various environments under a single, comprehensive security framework.
• February 2022: Juniper Networks, known for its secure, AI-driven networks, launched its newest product, Juniper Secure Edge. This novel offering presents Firewall-as-a-Service (FWaaS) features, delivered through a unified software architecture, under the management of Security Director Cloud. Its purpose is to bolster organizations' ability to secure their workforces, further enhancing their defensive capabilities against cyber threats.

Company Products

• Firepower 1000 Series: The Firepower 1000 Series from Cisco provides an intuitive firewall solution with significant benefits in blocking potential threats. Its user-friendly design simplifies configuration and management processes, making it accessible to users with varied levels of technical expertise. Beyond its ease of use, the Firepower 1000 Series is engineered to enhance threat defense capabilities and bolster intelligence, offering robust security features that fortify networks against a wide array of cyber threats.
• FortiGate: FortiGate, a product offered by Fortinet, stands out as the only next-generation firewall (NGFW) that features unified management for a hybrid mesh firewall system. FortiGate offers seamless integration capabilities, with the ability to scale and adapt to any location - be it a remote office, branch, campus, data center, or cloud environment. This adaptability ensures a streamlined, secure network regardless of the complexity or diversity of the infrastructure.

Next-Generation Firewall Market Scope:

Segmentation

• By Type
  • Rugged Firewalls
  • Data Center Firewalls
  • Cloud Firewall-as-a-Service
• By Enterprise Size
  • Small & Medium
  • Large
• By End User
  • BFSI
  • Government
  • IT & Telecommunications
  • Retail
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others