Next-Generation Firewall Market Report by Type (Solutions, Services), Deployment Type (Cloud-based, On-premises), Security Type (Firewall, Unified Threat Management, Network Security, Identity Based Security, and Others), Organization Size (Small and Medium Enterprises (SMEs), Large Enterprises), Vertical (Banking, Financial Services and Insurance (BFSI), IT and Telecom, Government and Public Utilities, Retail, Education, Healthcare, Energy and Utilities, and Others), and Region 2024-2032

Next-Generation Firewall Market Report by Type (Solutions, Services), Deployment Type (Cloud-based, On-premises), Security Type (Firewall, Unified Threat Management, Network Security, Identity Based Security, and Others), Organization Size (Small and Medium Enterprises (SMEs), Large Enterprises), Vertical (Banking, Financial Services and Insurance (BFSI), IT and Telecom, Government and Public Utilities, Retail, Education, Healthcare, Energy and Utilities, and Others), and Region 2024-2032

Report Format: PDF+Excel | Report ID: SR112024A2139
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Market Overview:

The global next-generation firewall (NGFW) market size reached US$ 5.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 14.3 Billion by 2032, exhibiting a growth rate (CAGR) of 10.68% during 2024-2032. The increasing incidences of cybersecurity threats, the widespread adoption of remote work culture, and the growing awareness about the benefits of NGFWs in providing holistic network security solutions are some of the major factors propelling the market.

Report Attribute
Key Statistics
Base Year
2023
Forecast Years
2024-2032
Historical Years
2018-2023
Market Size in 2023 US$ 5.7 Billion
Market Forecast in 2032 US$ 14.3 Billion
Market Growth Rate 2024-2032 10.68%


A next-generation firewall (NGFW) is a sophisticated cybersecurity solution developed to protect networks from advanced threats and unauthorized access. It offers a higher level of security by combining traditional firewall capabilities with advanced features such as intrusion detection and prevention, application layer filtering, and deep packet inspection. It is equipped with the ability to identify and control applications running on the network, allowing organizations to enforce granular policies. Additionally, it provides insight into user and device activity, enhancing security monitoring and incident response. Nowadays, it is gaining immense popularity for protecting digital assets across the globe.

Next-Generation Firewall Market

The market is primarily driven by the increasing number of cyber threats and the evolving needs of organizations to protect their digital assets effectively. In addition, the rise in cyberattacks, such as malware, ransomware, and advanced persistent threats led to the adoption of NGFWs to enhance their network security, thus influencing the market growth. Along with this, NGFWs offer advanced threat detection and prevention capabilities, including deep packet inspection, intrusion prevention, and application control, making them indispensable tools for safeguarding networks. Moreover, the proliferation of cloud computing and remote work expanded the attack surface for cybercriminals, thus representing another major growth-inducing factor. As businesses adopt cloud-based services and employees access company networks from various locations and devices, NGFWs provide the necessary security controls to monitor and secure these connections, ensuring data protection and regulatory compliance. Besides this, the increasing adoption of Internet of Things (IoT) devices in consumer and industrial sectors due to the growing concerns about network vulnerabilities is accelerating the market growth.

Next-Generation Firewall Market Trends/Drivers:

Increasing incidences of cybersecurity threats

The market is driven by the escalating trend of reshaping the landscape of cybersecurity solutions as organizations recognize the imperative need for enhanced defense mechanisms. In addition, the proliferation of cyberattacks, ranging from ransomware and data breaches to sophisticated malware, poses a grave risk to businesses and critical infrastructure, resulting in the adoption of next-generation firewalls is influencing market growth.  Moreover, NGFWs, with their advanced capabilities such as intrusion prevention, deep packet inspection, and application control, provide a proactive defense against these evolving threats, representing another major growth-inducing factor. Besides this, the increasing awareness of the numerous cyber threats and their potential impact has encouraged organizations to invest in NGFWs as a proactive defense strategy, thus accelerating market growth. Furthermore, several organizations migrate their applications and data to the cloud and require NGFWs to secure cloud-based assets for maintaining security and control over data in cloud environments, thus propelling the market growth.

Widespread adoption of remote work culture

The market is driven by the transformation in work dynamics, accelerated by numerous factors including the coronavirus disease (COVID-19) pandemic, which has reshaped the way organizations approach network security. In addition, the increasing number of employees working from various locations is escalating the demand for secure remote access solutions, thus influencing the market growth. Moreover, NGFWs ensure remote employees connect to corporate networks securely and provide virtual private network (VPN) capabilities and other security features to safeguard data during transmission, representing another major growth-inducing factor. Along with this, NGFWs employ advanced threat detection mechanisms such as intrusion prevention systems (IPS) and behavioral analysis to identify and curb evolving cyber threats that are essential in defending against attacks that target remote workers and their devices, thus propelling the market growth.

Growing awareness about the benefits of NGFWs among individuals

The growing awareness about the benefits of next-generation firewalls (NGFWs) in providing holistic network security solutions is driving the market growth. In addition, the rising number of high-profile cyberattacks on organizations across numerous industries and widespread attention to the essential need for enhanced network security is influencing the market growth. Moreover, industry associations, cybersecurity organizations, and government agencies are launching educational initiatives to inform businesses about the evolving threat and the effectiveness of NGFWs in countering these threats represents another major growth-inducing factor. Besides this, the implementation of industry-specific regulations and standards emphasizing the importance of comprehensive network security is accelerating the market growth. Also, many sectors require organizations to implement advanced security measures, including NGFWs, to remain compliant, which is augmenting market growth. Furthermore, media coverage of cyber threats and data breaches resulted in the adoption of next-generation firewalls for safeguarding sensitive information is propelling the market growth.

Next-Generation Firewall Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global next-generation firewall market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on type, deployment type, security type, organization size and vertical.

Breakup by Type:

Next-Generation Firewall Market by Type

  • Solutions
    • Hardware Solutions
    • Software Solutions
  • Services
    • System Integration Services
    • Consulting Services
    • Support and Maintenance Services
    • Training and Education Services
    • Managed Services
       

Solutions represent the most common type

The report has provided a detailed breakup and analysis of the market based on the type. This includes solutions (hardware solutions, and software solutions), and services (system integration services, consulting services, support and maintenance services, training and education services, and managed services). According to the report, solutions accounted for the largest market share.

The solutions market is subdivided into hardware solutions and software solutions. In addition, hardware-based NGFW solutions are dedicated appliances specifically designed to perform the complex tasks associated with firewall security. They are equipped with powerful processors, ample memory, and specialized hardware components to efficiently handle network traffic. This hardware-centric approach ensures high-performance security without taxing the organization's existing IT infrastructure.

Moreover, Hardware NGFWs are favored for their enhanced reliability and can effectively process and inspect vast volumes of network traffic, making them suitable for large enterprises and data centers where network performance and security are important, thus representing another major growth-inducing factor.

Besides this, software-based NGFW solutions, offer a more flexible and scalable approach to network security. They are typically deployed on standard server hardware or within virtualized environments, allowing organizations to adapt their security infrastructure to changing needs which is valuable for businesses experiencing rapid growth or seeking to optimize their IT resources.

Breakup by Deployment Type:

  • Cloud-based
  • On-premises
     

Cloud-based deployment hold the largest share of the market

A detailed breakup and analysis of the market based on the deployment type has also been provided in the report. This includes cloud-based, and on-premises. According to the report, cloud-based deployment accounted for the largest market share.

Cloud-based NGFWs offer unmatched flexibility and enable organizations to rapidly deploy and scale their security infrastructure according to changing needs. It is valuable in dynamic business environments where expansion or downsizing can occur quickly. Traditional hardware-based firewalls are often constrained by physical limitations, making them less adaptable in comparison.

Moreover, cloud-based NGFWs can easily accommodate the growth of network traffic and devices, whether due to business expansion or seasonal variations, it ensures that security resources can be allocated efficiently, without overburdening the network or incurring unnecessary costs, thus representing another major growth-inducing factor.

Furthermore, cloud-based NGFWs provide centralized management and monitoring which simplifies security administration across numerous locations, allowing organizations to maintain consistent policies and threat visibility, thus propelling the market growth.

Breakup by Security Type:

  • Firewall
  • Unified Threat Management
  • Network Security
  • Identity Based Security
  • Others
     

Firewall presently account for the largest market share

A detailed breakup and analysis of the market based on the security type has also been provided in the report. This includes firewall, unified threat management, network security, identity based security, and others.  According to the report, firewall accounted for the largest market share.

Firewall-based security forms the foundation of NGFW solutions and is favored by organizations for its enhanced versatility in protecting their networks. In addition, firewall technology can effectively block unauthorized access to networks and acts as the first line of defense by inspecting incoming and outgoing traffic, making it a trusted choice for organizations concerned about network security, thus influencing the market growth.

Along with this, firewall-based NGFWs employ stateful inspection, which tracks the state of active connections and enforces strict rules based on the context of the traffic which ensures only legitimate and authorized traffic is allowed, enhancing security, thus representing another major growth-inducing factor.

Besides this, firewall-based NGFWs are developed to scale with the growth of an organization's network and ensure that security can adapt to changing needs and accommodate expanding networks while offering granular control over applications, users, and content which allows organizations to define and enforce policies that align with their specific security and business needs, thus accelerating the market growth.

Breakup by Organization Size:

  • Small and Medium Enterprises (SMEs)
  • Large Enterprises
     

Large enterprises hold the largest share of the market

A detailed breakup and analysis of the market based on the organization size has also been provided in the report. This includes small and medium enterprises (SMEs), and large enterprises.  According to the report, large enterprises accounted for the largest market share.

Large enterprises typically manage extensive and intricate networks that span numerous locations, often across various geographic regions. As a result, their demand for enhanced scalable security solutions is influencing the market growth. In addition, the increasing use of NGFWs with advanced features such as deep packet inspection, application control, and intrusion prevention, for the complex security needs of large-scale networks is augmenting the market growth.

Moreover, large enterprises are likely to have substantial IT budgets earmarked for cybersecurity investments. They can allocate significant resources to procure, implement, and maintain NGFW solutions effectively which enables them to stay at the forefront of adopting the latest NGFW technologies and ensuring their networks remain resilient to emerging threats, thus representing another major growth-inducing factor.

Additionally, large enterprises often have a broader spectrum of applications and services running on their networks. NGFWs excel in providing granular control over application traffic, allowing these organizations to optimize network performance and enforce policies tailored to their specific needs, thus propelling market growth.

Breakup by Vertical:

  • Banking, Financial Services and Insurance (BFSI)
  • IT and Telecom
  • Government and Public Utilities
  • Retail
  • Education
  • Healthcare
  • Energy and Utilities
  • Others
     

Banking, financial services and insurance (BFSI) sector presently accounts for the largest market share

A detailed breakup and analysis of the market based on the vertical has also been provided in the report. This includes banking, financial services and insurance (BFSI), IT and telecom, government and public utilities, retail, education, healthcare, energy and utilities, and others.  According to the report, banking, financial services and insurance (BFSI) sector accounted for the largest market share.

The BFSI sector handles an abundance of sensitive financial data, including customer information, transaction records, and financial assets, thus influencing market growth. In addition, the rising concern of protecting this data from cyber threats and data breaches is contributing to the market growth. NGFWs provide enhanced data security measures, including encryption, intrusion detection, and application-layer filtering, ensuring the confidentiality and integrity of financial information.

Moreover, NGFWs are equipped with advanced threat detection and prevention capabilities, such as signature-based and behavioral analysis, to detect and curb sophisticated threats such as ransomware, DDoS attacks, and zero-day vulnerabilities, thus representing another major growth-inducing factor.

Besides this, the growing trend of online and mobile banking, and secure remote access is driving the market growth. Also, NGFWs enable secure connections for customers accessing their accounts remotely, ensuring that financial transactions remain protected from malicious actors, thus propelling market growth.

Breakup by Region:

Next-Generation Firewall Market by Region

  • North America
    • United States
    • Canada
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Russia
    • Others
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East and Africa
     

North America exhibits a clear dominance in the market

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

The North America market is driven by several technological advancements. In addition, it is home to numerous tech giants and cybersecurity firms that continually develop advanced NGFW solutions, thus contributing to the market growth. Also, the growing awareness regarding cybersecurity threats led businesses and organizations to prioritize enhancing network security, thus escalating the demand for advanced security solutions such as NGFWs.

Moreover, several government agencies in North America are promoting cybersecurity initiatives and collaborating with the private sector to enhance national security which fosters the adoption of NGFWs in public and private sectors, thus representing another major growth-inducing factor.

Besides this, companies are allocating substantial resources to research and development (R&D) in the cybersecurity sector for threat detection and prevention capabilities, thus accelerating market growth.

Competitive Landscape:

At present, key players are continually implementing strategic initiatives to strengthen their positions and remain competitive. They are investing in research and development (R&D) to enhance their product offerings while focusing on developing advanced threat detection and prevention capabilities, improving user interfaces, and incorporating automation and machine learning for more effective security. Moreover, companies are recognizing the growing shift to cloud-based environments, and integrating their NGFW solutions with cloud platforms which ensures that customers can secure their cloud workloads effectively, offering flexibility and scalability. Besides this, they are simplifying the management and configuration of NGFWs to make them more accessible to a wider range of users, including those with less technical expertise. Furthermore, companies are acquiring smaller cybersecurity firms with innovative technologies or entering strategic partnerships to expand their product portfolios which allows them to offer more comprehensive solutions to customers.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

  • Barracuda Networks Inc.
  • Check Point Software Technologies
  • Cisco Systems
  • Forcepoint LLC
  • Fortinet Inc.
  • Gajshield Infotech Pvt Ltd.
  • Hillstone Networks Co.
  • Juniper Networks Inc.
  • Palo Alto Networks Inc.
  • Sonicwall Inc.
  • Sophos Ltd.
  • Zscaler Inc.

Recent Developments:

  • In August 2022, Hillstone Networks Co., a provider of innovative and accessible cybersecurity solutions, launched two new models in its A-Series next-generation firewalls (NGFWs), the A7600 and A6800, to aid enterprises in delivering powerful network security capabilities, secure their expanding network edge, and drive sustainability with solutions in a compact 1RU form factor.
  • In July 2021, Fortinet Inc., a leading player in comprehensive, integrated, and automated cybersecurity solutions, announced the FortiGate 3500F next-generation firewall (NGFW) to defend enterprises with hybrid data centers from the ever-growing threat landscape and ransomware attacks.

Next-Generation Firewall Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Scope of the Report Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
  • Type
  • Deployment Type
  • Security Type
  • Organization Size 
  • Vertical
  • Region
Types Covered
  • Solutions: Hardware Solutions, Software Solutions
  • Services: System Integration Services, Consulting Services, Support and Maintenance Services, Training and Education Services, Managed Services
Deployment Types Covered Cloud-Based, On Premises
Security Types Covered Firewall, Unified Threat Management, Network Security, Identity Based Security, Others
Organization Sizes Covered Small And Medium Enterprises (SMEs), Large Enterprises
Verticals Covered Banking, Financial Services and Insurance (BFSI), IT And Telecom, Government and Public Utilities, Retail, Education, Healthcare, Energy and Utilities, Others
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered Barracuda Networks Inc., Check Point Software Technologies, Cisco Systems, Forcepoint LLC, Fortinet Inc., Gajshield Infotech Pvt Ltd., Hillstone Networks Co., Juniper Networks Inc., Palo Alto Networks Inc., Sonicwall Inc., Sophos Ltd., Zscaler Inc., etc.
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Benefits for Stakeholders:

  • IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the next-generation firewall market from 2018-2032.
  • The research report provides the latest information on the market drivers, challenges, and opportunities in the global next-generation firewall market.
  • The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
  • Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the next-generation firewall industry and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Key Questions Answered in This Report

The global next-generation firewall (NGFW) market was valued at US$ 5.7 Billion in 2023.

We expect the global next-generation firewall (NGFW) market to exhibit a CAGR of 10.68% during 2024-2032.

The rising applications of Next-Generation Firewall (NGFW) system across the BFSI sector to protect sensitive data as well as secure payment gateways and transaction portals are primarily driving the global next-generation firewall (NGFW) market.

The sudden outbreak of the COVID-19 pandemic has led to the rising deployment of remote working and BYOD models resulting in the increasing demand for next-generation firewall systems across several organizations to ensure the advanced security of the connections in the network.

Based on the type, the global next-generation firewall (NGFW) market can be segmented into solutions and services. Currently, solutions hold the majority of the total market share.

Based on the deployment type, the global next-generation firewall (NGFW) market has been divided into cloud-based and on-premises, where cloud-based deployment currently exhibits a clear dominance in the market.

Based on the security type, the global next-generation firewall (NGFW) market can be categorized into firewall, unified threat management, network security, identity based security, and others. Among these, firewall accounts for the majority of the global market share.

Based on the organization size, the global next-generation firewall (NGFW) market has been segregated into Small and Medium Enterprises (SMEs) and large enterprises. Currently, large enterprises hold the largest market share.

Based on the vertical, the global next-generation firewall (NGFW) market can be bifurcated into Banking, Financial Services and Insurance (BFSI), IT and telecom, government and public utilities, retail, education, healthcare, energy and utilities, and others. Among these, the Banking, Financial Services and Insurance (BFSI) sector currently exhibits a clear dominance in the market.

On a regional level, the market has been classified into North America, Asia Pacific, Europe, Latin America, and Middle East and Africa, where North America currently dominates the global market.

Some of the major players in the global next-generation firewall (NGFW) market include Barracuda Networks Inc., Check Point Software Technologies, Cisco Systems, Forcepoint LLC, Fortinet Inc., Gajshield Infotech Pvt Ltd., Hillstone Networks Co., Juniper Networks Inc., Palo Alto Networks Inc., Sonicwall Inc., Sophos Ltd., Zscaler Inc., etc.

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Next-Generation Firewall Market Report by Type (Solutions, Services), Deployment Type (Cloud-based, On-premises), Security Type (Firewall, Unified Threat Management, Network Security, Identity Based Security, and Others), Organization Size (Small and Medium Enterprises (SMEs), Large Enterprises), Vertical (Banking, Financial Services and Insurance (BFSI), IT and Telecom, Government and Public Utilities, Retail, Education, Healthcare, Energy and Utilities, and Others), and Region 2024-2032
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