Global Next-Generation Firewall Market Segmentation, By Solution (Hardware, Virtual, and Cloud-based), Service (Professional Service and Managed Service), Organization Size (Small and Medium-sized Enterprises and Large Enterprises), Vertical (BFSI, Retail, IT and Telecom, Government and Public Utilities, Healthcare, Energy and Utilities, Education, and Others) – Industry Trends and Forecast to 2031.
Next-Generation Firewall Market Analysis
The next-generation firewall (NGFW) market has seen significant advancements in methods and technology, driven by the need for enhanced security against sophisticated cyber threats. NGFWs now integrate machine learning (ML) and artificial intelligence (AI) to detect and mitigate zero-day vulnerabilities and advanced persistent threats (APTs). Features such as deep packet inspection (DPI) and intrusion prevention systems (IPS) are now standard, enabling a more comprehensive view of network traffic and real-time threat detection.
Cloud-based firewalls are gaining traction as businesses increasingly adopt cloud infrastructure, providing scalable and flexible security. Integration with Security Information and Event Management (SIEM) systems allows for streamlined management and analysis of security incidents. Moreover, advancements in 5G technology are anticipated to drive growth by increasing the demand for advanced security solutions for IoT network. This demand is leading to widespread adoption of these technologies globally.
Next-Generation Firewall Market Size
The global next-generation firewall market size was valued at USD 4.90 billion in 2023 and is projected to reach USD 12.05 billion by 2031, with a CAGR of 11.9% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Next-Generation Firewall Market Trends
“Increasing Adoption of Cloud-Based Firewalls”
One significant trend driving the growth of the next-generation firewall (NGFW) market is the increasing adoption of cloud-based firewalls. As businesses shift more operations to cloud environments, the demand for advanced, scalable security solutions has risen. Cloud-based NGFWs offer improved flexibility, seamless integration, and enhanced protection against evolving cyber threats in hybrid cloud networks. For instance, Fortinet's FortiGate NGFW provides cloud-native protection with real-time threat intelligence, catering to businesses that rely on cloud infrastructure. This trend is expected to boost market growth as more companies invest in cloud-centric security strategies to safeguard their data in an increasingly digital world.
Report Scope and Next-Generation Firewall Market Segmentation
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Attributes
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Next-Generation Firewall Key Market Insights
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Segments Covered
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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Fortinet, Inc. (U.S.), Check Point Software Technologies Ltd. (Israel), Cisco Systems, Inc. (U.S.), Palo Alto Networks, Inc. (U.S.), Barracuda Networks, Inc. (U.S.), Forcepoint (U.S.), Zscaler, Inc. (U.S.), Juniper Networks, Inc. (U.S.), WatchGuard Technologies, Inc. (U.S.), Sophos Ltd. (U.K.), GajShield Infotech (I) Pvt. Ltd. (India), Hillstone Networks (China), Huawei Technologies Co., Ltd. (China), SonicWall (U.S.), NVIDIA Corporation (U.S.), Untangle (U.S.), and Alibaba Cloud (China)
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Market Opportunities
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Value Added Data Infosets
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In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
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Next-Generation Firewall Market Definition
A Next-Generation Firewall (NGFW) is an advanced security system that goes beyond traditional firewalls by offering deeper packet inspection and intelligent threat detection. NGFWs integrate features such as intrusion prevention, application awareness, and cloud-delivered threat intelligence to provide a more comprehensive defense against modern cyber threats. They analyze data at multiple levels, including application, protocol, and user, allowing for more granular control and improved detection of malware, ransomware, and zero-day exploits. By combining firewall capabilities with additional security functions, NGFWs are crucial for organizations seeking enhanced protection in today’s increasingly complex digital environments.
Next-Generation Firewall Market Dynamics
Drivers
- Rising Network Virtualization and SD-WAN
The growing adoption of Software-Defined Wide Area Networks (SD-WAN) and network virtualization technologies is significantly driving the next-generation firewall (NGFW) market. As businesses move towards decentralized and cloud-based operations, securing distributed networks becomes a priority. NGFWs provide robust security controls, ensuring secure traffic flow and protection across multiple network branches. For instance, companies using SD-WAN can benefit from NGFWs by enabling centralized security policies, deep packet inspection (DPI), and real-time threat detection. This combination enhances overall network visibility and security, making NGFWs essential for modern virtualized environments, thus propelling their market growth.
- Rising Demand for High-Performance Security
Businesses today require high-performance security solutions that do not compromise network speed. Next-generation firewalls (NGFWs) are designed to meet this demand by offering optimized security with hardware acceleration, deep packet inspection, and intelligent traffic handling. This ensures that security measures are enforced without creating bottlenecks, making them essential for enterprises with high-speed data transfer requirements. For instance, financial institutions processing large volumes of transactions need to maintain both security and efficiency. NGFWs help by providing robust protection against threats while ensuring smooth operations, driving the market growth as businesses prioritize both speed and cybersecurity in their operations.
Opportunities
- Need for Advanced Threat Detection
The growing complexity of cyberattacks has increased demand for advanced threat detection capabilities, creating opportunities in the next-generation firewall (NGFW) market. NGFWs offer integrated intrusion detection and prevention systems (IDS/IPS), malware protection, and deep packet inspection (DPI), making them essential for businesses seeking robust security. For instance, companies in sectors such as finance and healthcare, which handle sensitive data, increasingly rely on NGFWs to mitigate the risk of data breaches and targeted cyberattacks. As threats evolve, the need for real-time, sophisticated detection and response capabilities boosts NGFW adoption, driving market growth as organizations prioritize proactive cybersecurity measures.
- Growing Remote Workforce Growth
The post-pandemic rise in remote working has created significant opportunities for the next-generation firewall (NGFW) market. With more employees accessing corporate networks from various locations, the need for secure remote connections has intensified. NGFWs, equipped with features such as secure VPN integration, multi-factor authentication, and encrypted traffic inspection, are increasingly adopted to protect remote workers from cyber threats. For instance, in 2023, companies such as Cisco and Fortinet saw a surge in demand for their NGFW solutions, driven by the shift to hybrid work models. This trend presents a growing market opportunity for NGFW vendors to provide robust security solutions for remote and virtual workspaces.
Restraints/Challenges
- High Deployment Costs
High deployment costs significantly hinder the next-generation firewall (NGFW) market, particularly for small to medium-sized enterprises (SMEs). Implementing NGFWs involves substantial investment in advanced hardware and software, which can strain budgets. Additionally, organizations often require skilled professionals for proper configuration and management, leading to increased operational expenses. Many SMEs may find these costs prohibitive, causing reluctance to adopt NGFW solutions. As a result, potential customers might opt for less expensive, traditional firewalls, limiting the growth and penetration of NGFWs in the market. This financial barrier not only restricts access but also slows down overall market expansion.
- Complex Configuration and Management
Complex configuration and management pose significant challenges for the next-generation firewall (NGFW) market. These advanced firewalls require highly skilled IT personnel to set up and maintain, which increases operational complexity. Organizations often struggle to find qualified experts, leading to potential misconfigurations. Such errors can create vulnerabilities, exposing networks to cyber threats. Additionally, the steep learning curve associated with NGFWs can result in longer deployment times and increased operational costs. As companies prioritize efficient and effective security solutions, the difficulty in managing NGFWs may deter adoption, hindering overall market growth in a competitive cybersecurity landscape.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Next-Generation Firewall Market Scope
The market is segmented on the basis of solution, service, organization size and vertical. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Solution
- Hardware
- Virtual
- Cloud-based
Service
- Professional Service
- Managed Service
Organization Size
- Small and Medium-sized Enterprises
- Large Enterprises
Vertical
- BFSI
- Retail
- IT and Telecom
- Government and Public Utilities
- Healthcare
- Energy and Utilities
- Education
- Others
Next-Generation Firewall Market Regional Analysis
The market is analyzed and market size insights and trends are provided by solution, service, organization size and vertical as referenced above.
The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
North America is expected to dominate the next-generation firewall market, driven by the advanced economies of the U.S. and Canada. The region's strong emphasis on innovation, backed by substantial investments in research and development, enhances security technologies. Furthermore, the increasing threat landscape compels businesses to adopt robust cybersecurity solutions, positioning North America at the forefront of next-generation firewall advancements and implementations.
Asia-Pacific is expected to witness significant growth in the next-generation firewall market due to the rapid adoption of IoT devices and BYOD (Bring Your Own Device) technologies. Organizations are increasingly focusing on enhancing cybersecurity measures to protect sensitive data from evolving threats. The demand for robust network security solutions is driving investments in next-generation firewalls, fostering a secure digital environment across various industries in the region.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Next-Generation Firewall Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Next-Generation Firewall Market Leaders Operating in the Market Are:
- Fortinet, Inc. (U.S.)
- Check Point Software Technologies Ltd. (Israel)
- Cisco Systems, Inc. (U.S.)
- Palo Alto Networks, Inc. (U.S.)
- Barracuda Networks, Inc. (U.S.)
- Forcepoint (U.S.)
- Zscaler, Inc. (U.S.)
- Juniper Networks, Inc. (U.S.)
- WatchGuard Technologies, Inc. (U.S.)
- Sophos Ltd. (U.K.)
- GajShield Infotech (I) Pvt. Ltd. (India)
- Hillstone Networks (China)
- Huawei Technologies Co., Ltd. (China)
- SonicWall (U.S.)
- NVIDIA Corporation (U.S.)
- Untangle (U.S.)
- Alibaba Cloud (China)
Latest Developments in Next-Generation Firewall Market
- In November 2023, Palo Alto Networks unveiled Strata Cloud Manager, a new zero-trust management solution. This innovative tool is designed to tackle critical issues such as insufficient predictive and actionable insights, along with the lack of seamless integration among security tools. By addressing these challenges, Strata Cloud Manager aims to close security gaps and ensure consistent policy enforcement across the organization’s security landscape
- In October 2023, GajShield launched its Next Generation Firewall with Advanced Data Security on Microsoft Azure, specifically engineered to safeguard both cloud-native and migrated applications. This cutting-edge solution provides in-depth insights into virtual environments, significantly enhancing threat prevention capabilities. By fortifying defenses against zero-day vulnerabilities, GajShield aims to ensure comprehensive security for enterprises leveraging cloud technologies, addressing the evolving threat landscape effectively
- In March 2022, Palo Alto Networks announced a strategic partnership with Amazon Web Services (AWS) to seamlessly integrate its next-generation firewall into AWS public cloud environments. This collaboration aims to enhance cloud security by providing organizations with advanced threat detection and prevention tools. The integration allows businesses to manage security policies more effectively while ensuring robust protection for applications deployed in the cloud, addressing growing security concerns
- In January 2022, Check Point Software Technologies introduced its Quantum Light Speed Firewalls, marking a significant revolution in network security. This new firewall technology is designed to provide unparalleled protection against advanced cyber threats. By leveraging innovative capabilities, Quantum Light Speed Firewalls enhance threat prevention, streamline security management, and improve overall network performance, empowering organizations to defend against increasingly sophisticated attacks in real time
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