PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1410150
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1410150
The cloud firewall market is expected to grow at a CAGR of 24.67% from US$2.208 billion in 2021 to US$10.334 billion in 2028.
Cloud firewalls are network devices deployed in the cloud, designed to prevent or reduce unauthorized access to private networks. The end users of the cloud firewall include financial institutions, government, healthcare, energy & utility, and other sectors. The escalating incidents of cyberattacks coupled with the growing adoption of cloud services are the key factors driving the expansion of the cloud firewall market.
Cloud firewalls are employed as an essential line of defense to protect cloud-based infrastructure from potential cyber threats. They play a crucial role in preventing or mitigating unwanted access to private networks, ensuring the security of data and applications residing in the cloud. This rise in cyber threats is primarily due to the increased sophistication of attackers, the digital transformation of businesses, and the growth in remote work and BYOD policies which is accelerating the need for robust cloud firewalls. According to the Check Point Software report, there was a substantial rise in global cyberattacks in 2022, with the weekly incidence growing by 38% compared to the previous year, 2021.
Cloud firewalls are utilized in cloud services as a crucial defensive measure to safeguard data and applications against potential cyber threats. As businesses are increasingly shifting their operations to the cloud to leverage the benefits of scalability, cost-effectiveness, and operational flexibility, the demand for robust cybersecurity measures, such as cloud firewalls. According to the Fortinet Cloud Security Survey report, in 2022, an increasing number of organizations are embracing hybrid or multi-cloud strategies to consolidate multiple services. The adoption of hybrid cloud strategies rose from 36% in 2021 to 39% in 2022, while multi-cloud strategies remained a popular choice for 33% of organizations,
Cloud firewalls are critical in remote work environments as they provide advanced security measures to protect sensitive data and systems that are being accessed from various locations outside of traditional corporate networks. They allow for secure remote access to the organization's resources, shielding them from potential cyber threats. The demand for cloud firewalls has surged due to a significant increase in remote work which has been largely driven by the growing home-based work arrangements. According to the International Labour Organization, in the second quarter of 2020, the number of individuals working from home stood at 557 million workers, making up approximately 17.4% of the global workforce. This significant portion of remote workers underscores the widespread impact of remote work arrangements during that period.
North America is expected to establish itself as a dominant player in the cloud firewall industry due to the escalating frequency of cyber-attacks and supportive government initiatives. The region is experiencing a dramatic surge in cyber threats, necessitating robust cybersecurity measures. Cloud firewalls, being a crucial component of these measures, are gaining significant traction. Moreover, the government's proactive role in prioritizing cybersecurity is evident in its formulation of stringent regulations and encouragement of cybersecurity initiatives. According to the Internet Crime Complaint Center, in 2022, the most frequently reported incidents were phishing, personal data breaches, and non-payment/non-delivery in America. Investment fraud accounted for a significantly higher loss of $3.3 billion, representing a remarkable 127% increase from the previous year.
For some organizations, particularly smaller businesses with constrained resources, the cost of implementing and maintaining cloud firewalls can pose a considerable challenge. For instance, a Google policy encompassing 600 attributes to cover 200 virtual machines (VMs) can incur a monthly cost of $300. This financial consideration may deter some smaller businesses from adopting cloud firewalls, limiting their ability to benefit from enhanced cybersecurity measures and leaving their digital assets vulnerable to potential cyber threats. Finding cost-effective solutions or exploring alternative security measures may be necessary for such organizations to strike a balance between safeguarding their systems and managing their budgetary constraints effectively.