The Enterprise Firewall Market is expected to grow at a CAGR of 9.69% over the forecast period (2021 - 2026). Earlier used enterprise firewalls have lost their feasibility in the current market scenario, as the high level of threats posed by modern hacking methods cannot be handled by conventional systems.
- Enterprise firewalls are the basic units of network security. They examine the flow of inbound and outbound data packets in an enterprise network against a set of predefined values to detect any malicious activity in the network.
- With the emergence of cloud technology, firewalls are now being deployed which offers a bundled solution that ensures availability of firewall on any device, addresses any traffic workload and enforces similar policies across the organization.
- According to the Identity Theft Resource Center (ITRC), in the United States in 2017, the commercial networks witnessed 1,013 breaches, exposing more than 166 million records, out of which 98% belonged to various organizations operating in the business sector.
- Covid-19 accelerated the adoption of cloud infrastructure and services as well which has made the businesses to shift to loud-based firewall and firewall-as-a-service. For instance, In June 2020, MrOwl, a Social Cloud Storage platform that combines search, social, and digital organization, started offering comprehensive resources and tools to enable the users to safeguard themselves and continue being productive in the era of work from home (WFH).
- Additionally, various venture capitalists and investors are keeping an eye for investments as the Covid-19 has provided new growth opportunities for the vendors in the market. For instance, In April 2020, Palo Alto content firewall business scored USD 120 million and plans on expanding further through acquisitions.
Key Market Trends
Cloud Services to have High Growth Rate due to enhanced adoption of Industry 4.0
- Cloud computing is increasing day by day, owing to the flexible work environment, data distribution, and efficient data storage that cloud computing provides is unmatched by any other traditional computing and data storage systems.
- Consequently, numerous companies are heading toward cloud computing, placing their data and communications in the cloud. Security issues are one of the most important factors hampering the growth of cloud adoption.
- The increasing demand for network security, especially in the manufacturing sector is primarily due to the rapid adoption of Industry 4.0 policies, also IoT applications are expected to create a huge demand for enterprise firewall systems.
- With the emergence of cloud technology, firewalls are now being deployed which offers a bundled solution that ensures availability of firewall on any device, addresses any traffic workload and enforces similar policies across the organization
- Furthermore, cloud computing is estimated to grow at a robust rate during the forecast period. The increased adoption of cloud-based software has provided a number of benefits for companies from various industries, including the ability to use software from any device, either through a native app or through a browser. The growth of cloud computing is directly driving the growth of the enterprise firewall market, as, without a security layer, valuable data of the organizations is at stake as data breaches are increasing.
North America Occupies the Largest Market Share
- The North American region currently has the highest market share, due to the high preference of businesses for security, and continuous adoption of high performing network security solutions by organizations.
- Cloud solutions are playing a vital role in propelling the growth of enterprise firewall in this region, due to its attributes that include cost-effectiveness, automatic integrations, minimum IT investment, and easy accessibility.
- The latest technological breakthroughs have also assisted the advancement of the enterprise firewall market. These advancements can make the overall processes more efficient and can significantly improve accuracy in numerous applications. There have been a series of new product launches, mergers, and acquisitions in the North American region to take advantage of this opportunity.
- According to cybersecurity company Lumu, in 2020, 69 % of North American companies said they were the victim of a ransomware attack. Over the last year, 15.4 % of North American local, state, and federal governments also reported having suffered from a ransomware attack, the highest of any other category. Businesses most targeted include manufacturing (13.9%), construction (13.2%), utilities (11.1%), service (10.4%), retail (7.4%), real estate (7.1%), and hospitality (6.1%).
- In October 2020, US payments processor Visa revealed that two North American hospitality merchants were hacked and had their system infected with point-of-sale (POS) malware earlier this year. Visa said it found three different strains of POS malware on the victim network — namely RtPOS, MMon (aka Kaptoxa), and PwnPOS.
The enterprise firewall market is highly competitive in nature and is mildly concentrated due to the presence of several international and national players. Major players in the enterprise firewall market include Cisco Systems, Juniper Networks, Palo Alto Networks, Cisco systems among others.
- March 2020 - Sophos, a provider of Firewall announced schemes such as Sophos Home Commercial Edition Program for enterprise protection and free access for 90 days.
- May 2020 - Fortinet launched the world’s first Hyperscale enterprise network firewall, Fortinet 4200F which received a performance boost which is credited to a seventh-generation network processor that enables higher scalability and performance. FortiGate 4200F behaves as an integral part of the Fortinet Security fabric. It is engineered to enable an innovative, security-driven networking approach that seamlessly integrates networking with security.
- August 2020 - Infinity Labs launched Infinxt Secure SD WAN, a software-defined solution with Inbuilt next-generation firewall (NGFW). The Infinxt SD WAN offers enterprise security with rapid and easy deployment, optimized cloud infrastructure, with inbuilt NGFW. The solution focuses on delivering high-quality experience with business-centric applications without any compromise on security.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Introduction to Market Drivers and Restraints
4.4 Market Drivers
4.4.1 Increasing Security Threats
4.5 Market Restraints
4.5.1 Laggard Attitude Towards Security by Some Enterprises
5 TECHNOLOGY SNAPSHOT
6 MARKET SEGMENTATION
6.1 Type of Deployment
6.3 Size of the Organization
6.3.1 Small and Medium Organizations
6.3.2 Large Organizations
6.4 End-user Industry
6.4.6 Financial Services
6.4.9 Other End-user Industries
6.5.1 North America
6.5.4 Latin America
6.5.5 Middle East & Africa
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Fortinet Inc.
7.1.2 Palo Alto Networks
7.1.3 McAfee (Intel Security Group)
7.1.4 Dell Inc.
7.1.5 Cisco Systems Inc.
7.1.6 The Hewlett-Packard Company
7.1.7 Juniper Networks
7.1.8 Check Point Software Technologies
7.1.9 Huawei Technologies Inc.
7.1.10 Sophos Group plc.
7.1.11 Netasq SA
7.1.12 WatchGuard Technologies
7.1.13 SonicWall Inc.
8 INVESTMENT ANALYSIS
9 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.