Network Security Firewall Market Size, Share, Forecast, & Trends Analysis by Component (Solutions, Services), Type (Unified Threat Management, Next-generation Firewall), Deployment Mode, Organization Size, and Sector (BFSI, Retail, and Healthcare) and Geography - Global Forecast to 2031

The N

etwork Security Firewall Market is expected to reach $19.8 billion by 2031, at a CAGR of 20.6% from 2024 to 2031. The growth of the network security firewall market is primarily driven by the rising government regulations encouraging the demand for network security firewalls, the growing significance of network security firewall solutions in the BFSI sector, the increasing demand for network security and privacy, and the advancement of digital transformation in the telecommunications industry. Moreover, the growing need for network security firewall solutions among SMEs and increasing adoption of network security firewall solutions in healthcare sector are expected to generate growth opportunities for the players operating in this market.

Growing Significance of Network Security Firewall Solutions in the BFSI Sector Driving Market Growth

The BFSI sector is highly dependent on IT infrastructure for delivering services, such as mobile, online, and core banking. Identity fraud is a major concern when conducting financial transactions through online banking portals and insurance apps. Due to ongoing technological advancements across BFSI channels, banks and other financial service institutions are increasingly vulnerable to business outages, system failures, data breaches, and cyber-attacks. The growing prevalence of advanced persistent threats further heightens the risk of malicious cyber activities within the financial sector. For instance, according to the SentinelOne, ransomware attacks on financial services have increased from 55% in 2022 to 64% in 2023, which is nearly double the 34% reported in 2021. Also, financial institutions in the U.S., Argentina, Brazil, and China were most affected. To overcome such challenges, network security firewall is an optimum solution for banks to use, such as a cloud computing environment for faster recovery time and data restoration. Hence, banks & financial institutions are investing heavily in incorporating network security firewall to improve work agility and customer experience.

Increasing Adoption of Network Security Firewall Solutions in the Healthcare Sector

The healthcare sector has undergone significant technological transformations. The digitization of medical records has resulted in a paradigm shift in the healthcare sector during the last decade. Advancements in technology have enabled the healthcare sector to use interconnected IoT, OT, IT, and medical devices to improve patient care and outcomes. Thus, cyberattacks & internet threats continue to rise in the healthcare sector due to the growing use of connected medical devices and remote patient mobile technology, making security and compliance a daunting task across distributed healthcare organizations. According to Check Point Software Technologies Ltd. (Israel), in 2022, healthcare organizations in the U.S. suffered an average of 1410 weekly cyberattacks per organization, which was 86% higher than in 2021. As a result, healthcare organizations have started implementing to network security firewall solutions for the safety of patients’ data, and for financial and operational success.

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Growing Need for Network Security Firewall Solutions Among SMEs

The digital transformation trend is not limited only to large enterprises, as small & medium-sized enterprises are also making the transition by incorporating digital technologies. The need to securely manage real-time business applications has also increased with growing technological advancements, subsequently driving the adoption of network security firewall among SMEs.

Network security firewall solutions offer packet filtering, stateful inspection, unified threat management, threat hunting, and compliance & vulnerability management. Furthermore, these solutions offer various capabilities, such as stronger scalable security coverage, lower operating costs, and improved workforce productivity. Thus, the adoption of network security firewall is gaining prominence among SMEs. Moreover, government agencies are making significant efforts to promote network security among small & medium-sized enterprises. For instance, in August 2018, the U.S. Government passed the NIST Small Business Cybersecurity Act, a law intended to help small businesses with resources to fend off cyber threats. Thus, SMEs are adopting network security firewall solutions for protection against cyberattacks and improved network infrastructure. These factors are expected to create growth opportunities for the network security firewall market.

By Component: The Solutions Segment to Dominate the Network Security Firewall Market in 2024

Based on component, the network security firewall market is segmented into the solutions and services. In 2024, the solutions segment is expected to account for the larger share of over 58.0% of the network security firewall market. The segment’s large share is attributed to the increasing focus on solution-centric security capabilities, growing cybercrime & cyber espionage, and growing investment in R&D to improve network security firewall solutions. In addition, the benefits associated with network security firewall solutions, such as advanced threat detection, monitoring network traffic, stopping virus attacks, stopping spyware, and preventing unauthorized access, further support the growth of this segment.

However, the services segment is expected to grow at a higher CAGR during the forecast period due to the wide adoption of network security firewall services across IT & telecommunications, BFSI, retail & healthcare sectors, resulting in the increased demand for consulting, training & support, and integration services.

By Type: The Unified Threat Management Segment to Dominate the Network Security Firewall Market in 2024

Based on type, the network security firewall market is segmented into packet filtering, stateful inspection firewall, next-generation firewall, and unified threat management. In 2024, the unified threat management segment is expected to account for the largest share of over 34.0% of the network security firewall market. The segment’s large share is attributed to the rising demand for UTM to counter increasing threats associated with unauthorized access and data thefts, the growing adoption of advanced security methods in the corporate sectors, and rising data security breaches. Also, this segment is expected to record the highest CAGR during the forecast period 2024–2031.

By Organization Size: The Large Enterprises Segment to Dominate the Network Security Firewall Market in 2024

Based on organization size, the network security firewall market is segmented into large enterprises and small & medium-sized enterprises. In 2024, the large enterprises segment is expected to account for the larger share of over 65.0% of the network security firewall market. This segment's large market share is attributed to its strong infrastructure and management of network security platforms by skilled IT personnel. Furthermore, large enterprises focus on desired security channels against cyber threats to retain customers, boost sales, and validate necessary steps to overcome market interruptions.

However, the small & medium enterprises segment is expected to grow at a higher CAGR during the forecast period. The increasing adoption of cybersecurity solutions & services among small & medium-sized enterprises (SMEs) to track, monitor, and manage assets, the growing digital transformation across industries, and the increasing number of cyberattacks on networks are expected to support the growth of this segment.

By Deployment Mode: The On-premise Deployment Segment to Dominate the Network Security Firewall Market in 2024

Based on deployment mode, the network security firewall market is segmented into on-premise deployments and cloud-based deployments. In 2024, the on-premise deployments segment is expected to account for the larger share of over 53.0% of the network security firewall market. The large market share of this segment is attributed to the greater control of network security infrastructure offered by on-premise solutions, the high preference for on-premise deployments among large enterprises, and the availability of trained IT professionals and supportive infrastructure.

However, the cloud-based deployments segment is slated to register the highest CAGR during the forecast period. The rapid evolution of new avenues for cloud-based deployments, the superior flexibility offered by cloud-based deployments, and the increasing incorporation of cloud-based solutions by small & medium-sized enterprises are expected to support the growth of this segment.

By Sector: The IT & Telecommunications Segment to Dominate the Network Security Firewall Market in 2024

Based on sector, the network security firewall market is segmented into the BFSI, retail, IT & telecommunications, government, healthcare, and other sectors. In 2024, the IT & telecommunications sector is expected to account for the largest share of over 22.0% of the network security firewall market. The large market share of this segment is attributed to the increasing demand for filtering & monitoring network traffic, the growing need for network security and privacy, the rising need to protect connected network infrastructure, and the advancement of digital transformation in the telecommunications industry.

However, the healthcare segment is projected to record the highest CAGR during the forecast period due to the rising need for effective network security firewall measures, a surge in patient data security & privacy concerns, and increasing demand for secure medical connected devices.

North America to Dominate the Network Security Firewall Market

Based on geography, the network security firewall market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the over 38.0% of the network security firewall market. The presence of prominent network security firewall players, including Juniper Networks, Inc. (U.S.), Mobileum Inc. (U.S.), and Cisco Systems, Inc. (U.S.), is expected to contribute to the high revenue share of this region. In addition, the high adoption rate of network security firewall solutions to enhance its IT infrastructure and the rising need to protect connected network infrastructure drive the demand for network security firewall solutions in the region.

However, Asia-Pacific is expected to witness the highest CAGR of 23.5% during the forecast period 2024-2031. The high market growth in Asia-Pacific is attributed to the rapid growth rate of developing economies, growing cybercrimes, and growing awareness regarding network security firewalls among small & medium-scale organizations driving the region's demand for network security firewalls. In addition, market players are investing in expanding their operations in the region. For instance, in April 2023, Imperva, Inc. (U.S.) opened its Network and Security Operations Centre in Singapore to better support APJ and global customers. This new center will enable the company to gain deeper insights into cyberattacks occurring in the region, allowing it to assist customers in promptly navigating the complex business risks associated with such attacks.

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the network security firewall market are Cisco Systems, Inc. (U.S.), Check Point Software Technologies Ltd. (Israel), Mobileum Inc. (U.S.), Juniper Networks, Inc. (U.S.), Palo Alto Networks, Inc. (U.S.), Fortinet, Inc. (U.S.), Openmind Networks Limited (Ireland), Anam Technologies Ltd. (Ireland), Cellusys Limited. (Ireland), Sophos Ltd. (U.K.), Route Mobile Limited (India), SonicWall Inc. (U.S.), Enea AB (Sweden), and Forcepoint LLC. (U.S.).

Network Security Firewall Industry Overview: Latest Developments from Key Industry Players

• In April 2023, Akamai Technologies, Inc. (U.S.) launched its Prolexic Network Cloud Firewall. This new capability of Akamai Prolexic allows customers to define and manage their own access control lists (ACLs) while enabling greater flexibility to secure their own network edge.
• In March 2022, Palo Alto Networks, Inc. (U.S.) partnered with Amazon Web Services, Inc. (U.S.) to unveil the new Palo Alto Networks Cloud NGFW for AWS, a managed Next-Generation Firewall (NGFW) service, designed to simplify securing AWS deployments enabling organizations to speed their pace of innovation while remaining highly secure.