Market Challenges And Opportunities

Global Next Generation Firewall Market- Drivers

Increasing Instances of Cyber Attacks and Data Breaches: Rising cases of cyberattacks and data breaches across enterprises are major factor driving growth of the global next generation firewall market. High profile data breaches resulting in loss of sensitive consumer and enterprise data have highlighted the vulnerabilities in existing network security infrastructures. NGFWs provide advanced threat protection capabilities such as intrusion prevention, malware analysis, application control, and other to mitigate risks of attacks. Their integrated security functionalities offer superior protection as compared to traditional firewalls. Many governments worldwide have also imposed regulations around data security and privacy which is compelling businesses to adopt NGFWs. The annual report from the FBI's Internet Crime Complaint Center, the 2020 Internet Crime Report, had been published. It incorporates data from 791,790 complaints related to suspected internet crimes, marking a significant rise of over 300,000 complaints compared to 2019. These complaints also reported total losses surpassing US$ 4.2 billion.

Growth in BYOD and IoT: Growing Bring Your Own Device (BYOD) trend across enterprises is contributing to increased adoption of next generation firewalls. NGFWs help organizations to securely enable BYOD policies by providing granular visibility and control over network traffic. Their capabilities like user identity-based access control, device profiling, and malware analysis help to address security risks associated with BYOD. The exponential growth in IoT connected devices is also creating new network security challenges which NGFWs are equipped to handle through their advanced threat detection capabilities. . This plan involves a significant investment of EUR 1 billion (equivalent to USD 1.2 billion) to bolster cybersecurity across the country, earmarking approximately EUR 350 million (around USD 400 million) specifically for fortifying the cybersecurity measures in hospitals.

Global Next Generation Firewall Market- Opportunities

Adoption by Small and Medium Businesses: Widespread adoption of NGFWs in large enterprises is creating significant opportunities for next generation firewall vendors to target small and medium businesses (SMBs). SMBs largely rely on basic firewalls, and have limited security staff and budgets. Scaled-down, economical NGFW solutions tailored for SMBs would allow vendors to expand their target market. Simplified cloud-based or virtual NGFW deployments requiring minimal maintenance are likely to witness increasing demand among SMBs. According to the report published by Cisco, it is estimated that by 2020, approximately 78% of small businesses would have fully embraced cloud computing, signifying their adoption of at least one cloud service in their business processes.
Integration of Advanced Capabilities: Integrating advanced capabilities like artificial intelligence, threat intelligence feeds, deception technology, sandboxing, SIEM, and more into NGFWs provides vendors potential opportunities to differentiate their offerings. As cyber threats become more sophisticated, customers will look for NGFWs that leverage automation, machine learning and other emerging technologies to provide superior detection and response. Vendors that continuously invest in integrating complementary security capabilities within their NGFW portfolio can gain competitive advantage. For instance, in July 2021, Fortinet, a leading provider of comprehensive and automated cybersecurity solutions, unveiled the FortiGate 3500F next-generation firewall (NGFW). This advanced firewall is designed to safeguard enterprises with hybrid data centers from the continuously evolving threat landscape, including the rising menace of ransomware attacks. The FortiGate 3500F stands out with top-tier performance metrics in the industry, featuring support for TLS1.3 and automated threat protection post-encryption. Employing a security-driven networking approach, it also incorporates zero-trust network access (ZTNA) capabilities, ensuring consistent security and a seamless user experience for individuals accessing the network from any location.