A next generation firewall provides advanced cybersecurity capabilities like integrated threat prevention across networks and applications. It monitors web and email traffic and identifies vulnerabilities or anomalies to determine potential threats. key functions include application awareness and control, intrusion prevention, web filtering, virtual private networking, vulnerability assessment, and reporting. The global next generation firewall market provides cloud-based and virtual firewalls, and also offers features like contextual awareness that helps classify applications within network traffic.

The global next generation firewall Market is estimated to be valued at US$ 5,399.0 Mn in 2023 and is expected to exhibit a CAGR of 8.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The expanding threat landscape poses challenges for traditional firewalls, driving growth of next generation firewalls. According to Cisco Systems, the annual cost of cybercrime is projected to exceed USD 6 trillion by 2023 as ransomware, phishing scams and supply chain attacks become more advanced and frequent. Next generation firewalls offer multilayered protection through comprehensive traffic inspection, robust policy enforcement and continuous monitoring to combat emerging threats. Growing focus on zero-trust security is also boosting next generation firewall adoption as they facilitate granular access control based on user and device identity rather than network location. Moreover, the shift to hybrid work models amid the pandemic necessitates next generation firewalls capabilities like secure access, application visibility and control to protect organizations transitioning parts of their infrastructure to public clouds.

SWOT Analysis
Strength: Cisco Systems, Juniper Networks, Fortinet, and Palo Alto Networks are well-established players in the network security market with strong brands and reputations. They have extensive experience developing network and cloud security solutions. They have large research and development capabilities to continuously innovate their next generation firewall offerings.

Weakness: Smaller players in the next generation firewall market have limited financial resources for research and development compared to larger rivals. The pricing of some next generation firewall solutions can be higher than conventional firewalls, limiting their adoption among small and medium enterprises with tight budgets.

Opportunity: Many organizations are shifting more workloads and services to cloud-based platforms which increases the surface area for attacks. Next generation firewalls can provide improved visibility and security across hybrid networks encompassing on-premises and cloud resources. The trend of work from home and remote working due to the COVID-19 pandemic has also increased the need for advanced network security solutions.

Threats: Open source firewall solutions offer basic security capabilities free of charge, posing a challenge for vendors of proprietary next generation firewalls. Additionally, hacking groups and nation state actors constantly develop new techniques to breach network perimeter defenses, requiring firewall providers to rapidly roll out patches and updates.

Key Takeaways

The global next generation firewall market is expected to witness high growth over the forecast period of 2024 to 2031, expanding at a compound annual growth rate of 8.8% to reach a size of US$ 5,399.0 million by 2031 from US$ 3,016.5 million in 2024.

Regional analysis: North America currently dominates the next generation firewall market, supported by robust IT infrastructure and early adoption of advanced network security technologies among enterprises. However, Asia Pacific is expected to be the fastest growing regional market due to the rapid digitization of economies in the region combined with growing awareness about cyber threats. Countries such as China, Japan, and India are emerging as major markets.

Key players: Key players operating in the next generation firewall market include Cisco Systems, Juniper Networks, Fortinet, Palo Alto Networks, Barracuda Networks, Forcepoint, Zscaler, Watchguard Technologies, Sophos, Check Point Software Technologies, Hillstone Networks, and Huawei Technologies. Cisco Systems and Palo Alto Networks have the largest market shares currently due to their extensive product portfolios and global sales and distribution networks. Smaller players are focusing on niche segments and vertical market expertise. Untangle, Stormshield, SonicWall, NetGate, Smoothwall, Sangfor Technologies, Microsoft, and VMware are some other notable players in this market space.