Firewall-as-a-Service - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Firewall-as-a-Service Market size is estimated at USD 4.69 billion in 2024, and is expected to reach USD 2.19 billion by 2029, growing at a CAGR of 16.47% during the forecast period (2024-2029).

Cloud-based firewall services offer several benefits to organizations, including flexible scalability, secure access parity, security over migration, identity protection, and secure performance management. As a result, many organizations are implementing firewall-as-a-service to manage their data packets in the cloud network.

Key Highlights

• Hardware-based security options are becoming less common, and the implementation of more software-based solutions that use a service delivery paradigm has increased due to widespread cloud adoption. Over the past five years, these changes have accelerated the uptake of FWaaS solutions and other network and security services, bringing about more scalable and user-friendly security solutions.
• The enormous growth in cloud-based applications, the surge in data breaches in the public cloud environment, and ever-changing firewall protocols for business organizations are major factors influencing growth for the firewall-as-a-service in the global market. However, the complexity of integrating hosted firewalls with on-premise firewalls and inadequate IT infrastructures in underdeveloped nations are obstructing market growth.
• Firewall-as-a-service has found a place in various industries such as BFSI, government, IT & telecom, healthcare, retail, manufacturing, aerospace & defense, energy & utilities, and others, offering an advanced cloud-based network security solution for enterprises. As traffic increases exponentially over the cloud network, organizations have adopted security solutions like firewalls and endpoint security to protect their data on their respective cloud network.
• The impact of Covid-19 led to a rise in work-from-home and cloud adoption. The majority of IT employees' to-do lists will be dominated by providing remote access. According to Global Workplace Analytics, up to 30% of the workforce could be working from home multiple days per week by the end of the year. More than half (54%) of a Cybersecurity Insiders survey respondents said Covid-19 increased their cloud adoption for workflows and apps. Furthermore, about 66% of respondents anticipate increased security threats to remote workers. No matter where the users are located while working, firewalls must safeguard the organization's networks.

Firewall-as-a-Service Market Trends

Public Cloud Deployment Model is Expected to Hold Significant Market Share

• As organizations continue to move their operations to cloud environments, data protection, and security breaches have become major concerns across various industries, including financial services, government organizations, healthcare institutions, retail, defense, IT & telecom, and others.
• A report by RedLock Inc. reveals that nearly half (49%) of all databases worldwide are not encrypted, leaving them vulnerable to potential cyber-attacks. Additionally, over half (51%) of organizations are exposed to cloud storage services, increasing the risk of attacks on applications running in hosted environments.
• Furthermore, the shift from traditional IT infrastructure to cloud environments has resulted in a rapid increase in endpoints, necessitating advanced firewall protection services that are specific to cloud platforms.
• Vendors in the market are responding to this demand by offering enhanced versions of firewall-as-a-service (FWaaS) solutions with SSL offloading, content caching, and load balancing to ensure the smooth processing of applications. Developed countries worldwide are adopting FWaaS as a necessary service to protect their cloud environments and improve overall business functions.
• In April 2023, Akamai Technologies, Inc. launched the Prolexic Network Cloud Firewall. This capability of Akamai Prolexic allows customers to manage and define their own access control lists (ACLs) while enabling greater flexibility to secure their own network edge. Prolexic is Akamai's cloud-based DDoS protection platform that stops attacks before they reach applications, data centers, and internet-facing infrastructure.

Asia Pacific Expected to Witness Significant Growth in the Market

• The Asia Pacific region is currently experiencing the fastest adoption of firewall-as-a-service, with both large and small enterprises adopting this technology. China has witnessed an increase in cyberattacks, which has prompted the country to improve its defense capabilities. However, the country also has a good chance of serving as a significant point of origin for cyberattacks in other parts of the globe. Moreover, the number of connected devices has increased in China due to technological advancements. The interconnectivity of the devices will also grow exponentially with 5G-enabled devices. Consequently, there are more connected devices, which immediately increases the market's need for security products.
• Cybersecurity incidents have sharply increased in China as a result of the growing organizational propensity toward digitization and the usage of related technology as part of their operations. Due to technological advancements, there are more connected gadgets in China. Moreover, with the rise in the usage of 5G-enabled gadgets, the interconnectedness of the devices will also significantly increase, which in turn directly increases the need for security products, driving the market significantly within the region.
• Cybersecurity is gaining interest from Japanese enterprises and the government rapidly. The rise in cyberattacks on Japanese organizations prompts the government to establish new strategies, legislation, and facilities. Moreover, the widespread utilization of smartphones and the increasing connection of various electrical appliances to the Internet have made life more convenient but however, had exposed people to the daily risk of information theft.
• Japan is seeking bilateral cooperation with countries to operationalize its cybersecurity priorities, such as the agreement with the U.S. Department of Homeland Security, to improve and collaborate on curbing cyber threats faced by the governments. In January 2023, The United States and Japan signed an updated memorandum of cooperation on cybersecurity mainly to strengthen operational collaboration, as stated by the U.S. Department of Homeland Security.
• The government of Australia is focusing on the goal of becoming the most cyber-secure nation by 2030 as a result of growing cyber threats and demand for cyber security solutions for which the country is investing in enduring and adaptive capabilities. With this aim, the government wants the country to be a recognized brand for cybersecurity products and services, boosting domestic market growth.

Firewall-as-a-Service Industry Overview

The Firewall-as-a-Service market is fragmented with the presence of major players like Barracuda Networks, Inc., Cato Networks, Check Point Software Technologies, Inc., Cisco Systems, Inc., and Forcepoint. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

• February 2023 - Fortinet introduced a new ASIC that promises to meld the security and network functions of its core family of FortiGate firewalls more efficiently and powerfully. The custom chip is a 7-nanometer package, called a fifth-generation security processing system or FortiSP5, that promises several performance improvements for the FortiGate system.
• October 2022 - McAfee Corp., a leader in online security, introduced McAfee+ in the UK. This new product line includes all-new privacy and identity protections that let users live their lives online with confidence and security. The new McAfee+ product suite, which first debuted in the US, is now accessible in the UK and gives users access to extensive Personal Data Cleanup services, identity recovery assistance, lost wallet assistance, and the ability to secure all of their devices with world-class defense against threats.

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