The next-generation firewall market is expected to witness significant growth in the coming years, with a projected Compound Annual Growth Rate (CAGR) of 10.48% between 2021 and 2028, according to a recent study by Knowledge Sourcing Intelligence. This growth can be attributed to the rising number of cyber attacks globally, which have become more sophisticated and frequent over time. As a result, the need for next-generation firewalls (NGFW) to counter potential digital security breaches is increasing.
Statistical reports from the Indian Crime Coordination Center further reinforce this trend, highlighting a significant increase in cybercrime complaints. For instance, instances of UPI Fraud rose from 62,350 in Q1 2022 to 84,145 in Q2 2022. Additionally, the number of complaints related to Debit, Credit, and Sim Swap Fraud increased from 24,270 in Q1 2022 to 26,793 in Q2 2022. Furthermore, there were 19,267 Internet Banking Fraud complaints reported in the second quarter of 2022 alone. These figures emphasize the growing threat of cyber attacks and the urgent need for robust security measures.
Next-generation firewalls are designed to be more sophisticated than their traditional counterparts, offering multi-layered security and advanced features. They encompass various types of firewalls, including data centre firewalls, firewalls-as-a-service, and rugged firewalls, all aimed at combating the escalating cyber threats. These advanced features provide enhanced protection against evolving attack techniques and help organizations stay ahead of potential security breaches.
The growth prospects of the next-generation firewall market have been further boosted by numerous market collaborations and product launches. For example, in November 2023, Palo Alto Networks introduced five new machine learning-powered NGFWs, including the industry’s first firewall with a 1.5 Tbps App-ID performance capacity. Similarly, in November 2022, Fortinet announced the launch of its FortiGate Cloud-Native Firewall, specifically designed for Amazon Web Services environments. These advancements in NGFW technology contribute to the overall growth and effectiveness of digital security solutions.
When examining the next-generation firewall market by type, it can be categorized into rugged firewalls, data centre firewalls, and cloud firewalls-as-a-service. Among these, data centre firewalls hold a substantial market share due to their advanced security solutions tailored for protecting sensitive data and critical infrastructure. These firewalls are designed to provide comprehensive protection within data centres, ensuring the security and integrity of valuable information.
Furthermore, the market for next-generation firewalls is segmented by enterprise size, with large enterprises holding a major share. This can be attributed to the fact that large organizations often have more complex and extensive networks, making them prime targets for cyber attacks. As a result, they require robust security measures, such as next-generation firewalls, to safeguard their systems and data.
In terms of end-users, the next-generation firewall market caters to various sectors, including Banking, Financial Services, and Insurance (BFSI), government, IT, and more. These sectors handle a vast amount of sensitive data and are thus highly susceptible to cyber threats. Therefore, implementing next-generation firewalls is crucial for protecting critical information and ensuring the continuity of operations.
In conclusion, the next-generation firewall market is witnessing substantial growth due to the increasing frequency and sophistication of cyber attacks. Next-generation firewalls offer advanced security features and multi-layered protection, making them indispensable in countering potential digital security breaches. Collaborations and product launches by industry leaders further contribute to the growth prospects of the market. As organizations strive to enhance their cybersecurity measures, next-generation firewalls will continue to play a vital role in safeguarding valuable data and ensuring the integrity of digital systems.