Firewall as a Service Market Insights, 2031
The global firewall as a service market size was valued at USD 1.8 billion in 2021, and is projected to reach USD 15.6 billion by 2031, growing at a CAGR of 24.6% from 2022 to 2031.
The rise in malware and phishing threats among enterprises and the increase in adoption of IoT and BYOD trends are boosting the growth of the firewall as a service market. In addition, a surge in demand for the cloud-based firewall as a service model positively impacts the growth of the market. However, budget constraints among organizations and complexities of device security hamper the market growth. On the contrary, the increase in adoption of mobile device applications and platforms, and need for strong authentication methods, and transformation in the traditional network management solutions industry are expected to offer remunerative opportunities for the expansion of the firewall as a service market during the forecast period.
Firewall as a Service (FWaaS) is used in filtering network traffic to safeguard organizations from both inside and outside threats. It also provides features such as packet filtering, network monitoring, Internet Protocol security (IPsec), secure sockets layer virtual private network (SSL VPN) support, and Internet Protocol (IP) mapping features, FWaaS also has deeper content inspection capabilities that include the ability to identify malware attacks and other threats. FWaaS is positioned between the user’s network and the internet. As traffic attempts to enter users’ network, the FWaaS solution inspects it to detect and address threats. The inspection analyzes the information contained in the header of each data packet, garnering insight into where the packet came from and other behaviors that may signal it is malicious.
The firewall as a service market is segmented on the basis of service model, deployment model, enterprise size, industry vertical, and region. By service model, the market is bifurcated into infrastructure as a service, platform as a service, and software as a service. By deployment model, the market is segmented into public cloud, private cloud, and hybrid. By enterprise size, it is categorized into large enterprises and SMEs. By industry vertical, the market is divided into BFSI, energy and utilities, IT and telecom, government and public sector, healthcare, manufacturing, retail, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the firewall as a service market analysis are Amazon Web Services, Inc, Barracuda Networks, Inc., Cato Networks, Check Point Software Technologies Ltd., Cisco Systems, Inc., Forcepoint, Fortinet, IBM Corporation, Juniper Networks, Inc., McAfee Corp., Microsoft Corporation, Palo Alto Networks, SonicWall, Sophos Group plc, Trellix, WatchGuard, and Zscaler. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
In terms of enterprise size, the large enterprise segment holds the largest share of the FWaaS market, owing to large enterprises needing to monitor large networks. However, the SMEs segment is expected to grow at the highest rate during the forecast period, owing to the small businesses that require efficient network management tools to simplify their business operations.
Region wise, the FWaaS Market was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to its high concentration of firewall as a service vendors such as Microsoft Corporation, Palo Alto Networks, and SonicWall, which is expected to drive the firewall as a service market forecast within the region during the forecast period. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to rapid economic and technological developments in the region, which is expected to fuel the growth of the firewall as a service industry in the region in the coming few years.
The report focuses on growth prospects, restraints, and trends of the global firewall as a service market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as the bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the global firewall as a service market share.
Top Impacting Factors
Demand for network security and privacy is on the rise
Over the past few decades, there has been an increase in the need for security solutions all over the world. In the late 1990s and early 2000s, security equipment began to become mainstream for commercial and government applications; during this time, enterprise-level firewalls, intruder detection systems, identity management systems, event management solutions, and others, began to emerge. In the early years, cyber and network security tools were just nice to have the equipment, but now factors such as increased governmental policies for user data safety and privacy, an increasing number of cyber and network attacks, critical corporate data, and so on have made security solutions an absolute necessity in today's world, fueling the need for the firewall as a service solution.
Moreover, compliance policies and standards such as the European union’s General Data Protection Regulation (GDPR) mandate the use of security and privacy tools to ensure the safety of consumer and enterprise data, further fueling the need for the firewall as a service market in the coming years.
The increasing number of cyber-attacks and fraud cases
The outbreak of COVID-19 prompted a considerable proportion of routine activities and businesses to shift their operations online. As organizations and individuals throughout the world began to rely more heavily on digital media and communication networks, cybercriminals started taking advantage of the situation to cause havoc around the globe. Cybercrime has become a key worry for many organizations, according to a study published in Cybercrime Magazine, in February 2022, total damages and ransoms collected by hackers and cybercriminals around the globe amounted to more than $6 trillion in the year 2021.
The study also claims that these costs could grow every year and reach up to $10.5 trillion in the coming 5 years, growing at the rate of 15% each year. In July 2021, a major game publisher, Electronic Arts Inc. was hacked with more than 780 GB of their data stolen and held at ransom. This stolen data included source code for their upcoming game titles including FIFA 21 and others. Such factors are influencing the growth of the global firewall as a service market growth.
COVID-19 Impact Analysis
The COVID-19 outbreak is expected to present attractive prospects for key participants in the global firewall as a service market. Moreover, rising revenue creation has resulted from the increased demand for advanced network security solutions and the growth in ransomware and malware attacks. According to the IBM X-Force report, coronavirus-themed spam has increased 4,300% since February 2020, while businesses are concerned about new issues such as employee well-being, the transition to remote work, financial availability, and the durability of operations and supply chains, cyber-attack risks are rising. From small businesses to major corporations, security leaders must continue to focus on the whole threat lifecycle, which includes planning and detection, immediate action, and recovery.
In addition, ransomware attacks on physical essential infrastructure, such as windfarm turbines being knocked offline by a breach and a demand for a ransom to turn them back on, may occur in the future years. Companies will see more attacks on objects that were never connected online as the Internet of Things continues to proliferate at a rapid pace. If organizations deploy effective network security solutions to combat such attacks, this might also act as a significant opportunity for the firewall as a service industry.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current Firewall as a Service Market trends, estimations, and dynamics of the firewall as a service market analysis from 2021 to 2031 to identify the prevailing firewall as a service market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the firewall as a service market segmentation helps determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global firewall as a service market trends, key players, market segments, application areas, and market growth strategies.
Firewall-as-a-Service Market Report Highlights
| Aspects | Details |
 By Service Model |
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 By Deployment Model |
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 By Enterprise Size |
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 By Industry Vertical |
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 By Region |
|
 Key Market Players | Amazon Web Services, Inc, McAfee Corp., Palo Alto Networks, SonicWall, WatchGuard, IBM Corporation, Check Point Software Technologies Ltd., Cato Networks, Zscaler, Juniper Networks, Inc., Forcepoint, Cisco Systems, Inc., Microsoft Corporation, Trellix (formally fireeye), Sophos Group plc, Fortinet, Barracuda Networks, Inc. |
Analyst Review
Adopting an FWaaS product allows an organization to gain access to state-of-the-art security filtering technology. Upgrades should occur in a relatively seamless fashion and organizations draw upon the deep expertise of the vendor in operating its own product. FWaaS offerings are still new in the market. While some vendors have a few years of offering these services under their belts, perimeter protection is a business-critical service and cybersecurity professionals considering a service offering must be confident that the service is rock solid and will not disrupt business operations
Key providers of the media monitoring tool market such as Amazon Web Services, Inc, Barracuda Networks, Inc., and Cato Networks account for a significant share in the market. With the growing number of cyber-attacks key players are undergoing partnerships to provide top-of-the-line security solutions. For instance, in February 2022, Cisco Systems Inc. partnered with Indosat Ooredoo Hutchison to deliver smarter, faster, more secure, and cost-effective connectivity solutions for enterprises, retailers, and customers of all sizes to connect and access on-premise or any cloud-based business application.
Furthermore, in April 2022, Cisco Systems Inc. announced a partnership with the Telenor Group to extend their relationship through the fourth iteration of their JPA to address opportunities including digital transformation, cyber security for businesses, and the digital divide. In addition, with the growing security requirement from the corporates, various enterprises are adopting strategic acquisitions to automate and simplify network policy management. For instance, in October 2021, Forcepoint acquired Bitglass to make security easier to deploy and operate by consolidating technologies for protecting people everywhere as they access and use business data in cloud applications, on the web, and in private apps in data centers and private clouds.
The global firewall as a service market size was valued at USD 1.8 billion in 2021, and is projected to reach USD 15.6 billion by 2031
The global firewall as a service market is projected to grow at a compound annual growth rate of 24.6% from 2022 to 2031 to reach USD 15.6 billion by 2031
The key players profiled in the firewall as a service market analysis are Amazon Web Services, Inc, Barracuda Networks, Inc., Cato Networks, Check Point Software Technologies Ltd., Cisco Systems, Inc., Forcepoint, Fortinet, IBM Corporation, Juniper Networks, Inc., McAfee Corp., Microsoft Corporation, Palo Alto Networks, SonicWall, Sophos Group plc, Trellix, WatchGuard, and Zscaler.
North America is the largest regional market for firewall-as-a-service, accounting for 34.4% of the global market share in 2022
The growing threat of malware and phishing, along with rising IoT and BYOD adoption, is driving demand for cloud-based Firewall as a Service solutions.
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