Virtual Next-Generation Firewall Market Size, Share, Opportunities, And Trends By Deployment (Private, Public), By Enterprise Size (Small, Medium, Large), By End-User (BFSI, IT & Telecommunication, Government, Healthcare, Clinics, Others), And By Geography - Forecasts From 2023 To 2028

The virtual next-generation firewall market is estimated to grow at a CAGR of 9.68% during the forecast period.

A virtual firewall is a specialized security solution designed to protect and manage network traffic within virtualized environments, such as data centers, cloud computing platforms, or virtual private networks (VPNs). This technology is crucial for maintaining the security and integrity of virtual machines (VMs) and the data they handle in these dynamic and highly scalable environments. The virtual next-generation firewall (NGFW) industry is experiencing significant growth due to several key drivers like the increasing adoption of IoT devices, and a rising number of data breaches.

Growing Cyber Threats Drives Virtual Next-Generation Firewall Market Growth

Businesses need to be vigilant about future Denial-of-Service (DoS) attacks. Identifying these attacks using security analytics solutions can be challenging without proper protective measures and solutions in place. This growing need for protection against evolving threats is expected to drive the demand for virtual next-generation firewall systems, as they are essential for maintaining robust and efficient security systems. In September 2020, the Solicitor Regulatory Authority (SRA) produced a thematic review on cyber security by reviewing 30 law firms and 23 out of them experienced a loss amounting to over £4 million due to a cyberattack. New product launches are being witnessed in the market. For instance, in November 2022, Palo Alto Networks launched five fourth-generation ML-powered Next Generation Firewalls that would enable network defenders to counter cyber threats for their organizations.

Emerging security needs in the financial sector drive the Virtual Next-Generation Firewall market expansion.

The BFSI sector, due to its vast customer base and valuable financial data, is a prime target for cyberattacks, with threats including Trojans, ransomware, data breaches, and fiscal breaches. According to the BBC News article published in 2020, New Zealand's Exchange (NZX) experienced a distributed denial of service (DDoS) attack that paralyzed its website for a significant duration. As a result, NZX was forced to suspend trading in various financial instruments for nearly two days in a row, impacting access to price information for assets exclusively traded on its platform. Such an attack on a major, interconnected financial exchange justifies the rising demand for a Virtual Next-Generation Firewall.

Increasing reliance on IoT technology drives the Virtual Next Generation Market growth.

The virtual next-generation firewall market is experiencing substantial growth, primarily fueled by the increasing reliance on IoT technology. The proliferation of internet-connected devices in various sectors, including industrial, commercial, and residential, has created a heightened demand for robust cybersecurity solutions. This trend underscores the critical need for advanced virtual next-generation firewalls to protect against evolving cyber threats in an increasingly connected world.

North- America to dominate the Virtual Next-Generation Firewall Market.

North America is projected to hold a dominant position in the Virtual Next Generation Firewall (NGFW) market. The region enjoys technological excellence, with a thriving cybersecurity sector that readily embraces advanced security solutions, including virtual NGFWs, to safeguard networks and data. Additionally, North American enterprises have exhibited a high adoption rate of virtual NGFWs, recognizing the evolving cyber threat landscape and the need for proactive protection. In the fiscal year 2023, the President's Budget allocated approximately $10.9 billion in budget authority for civilian cybersecurity-related activities. This represents a notable 11 percent increase compared to the budget reported for the previous year in 2022.

Key Developments

Segmentation

• By Deployment
  • Private
  • Public
• By Enterprise Size
  • Small
  • Medium
  • Large
• By End-User
  • BFSI
  • IT & Telecommunication
  • Government
  • Healthcare
  • Clinics
  • 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
    • Other