Edge Security Market

The global Edge Security Market size was valued at USD 19.2 billion in 2022 and it is projected to reach USD 51.1 billion by the end of 2027 at a CAGR of 21.6% during the forecast period. The need for edge device security to protect the endpoints and the need for connecting and protecting the remote workforce is driving the demand for edge security solutions and services.

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Edge Security Market Dynamics

Driver: Need for secure access to cloud services and websites

Enforcing policy control over user access to the internet, web, and cloud applications (historically performed by an SWG) is one of the primary use cases for the security service edge. SSE policy control helps mitigate risk as end users access content on and off-network. Enforcing corporate internet and access control policies for compliance is also a key driver for secure access to IaaS, PaaS, and SaaS. Another key capability is Cloud Security Posture Management (CSPM), which protects organizations from risky misconfigurations that can lead to breaches. As per the AT&T Cybersecurity Insights Report 2022, 5G and cloud are the most preferred edge networks. The report found that over 93% of respondents researched, implemented, and completed 5G implementations, and 58% believed the cellular edge would enable near-real-time cloud services. Thus, the growing usage of web applications and cloud services is expected to boost the adoption of edge security solutions during the forecast period.

Restraint: Lack of awareness and education about SASE security architecture

The COVID-19 pandemic forced many organizations around the globe to accelerate their digital transformation activities to support work from anywhere and remote operations. According to Versa Networks Global Transformation Survey 2021, security and IT professionals disclosed that 84% of organizations have recently accelerated their digital transformation adoption initiatives and moved to the cloud. During this transformation, the main challenges experienced were network performance and security. With countless new devices connected to organizations' networks, this overloaded the systems and caused a dramatic increase in security risks. Organizations have rolled out the SASE approach to offer improved security of applications and devices used by the work-from-anywhere user. Despite growing adoption, the survey found that only 31% of teams know the accurate definition of SASE. As a result of this lack of understanding, some organizations may not be able to realize all the true benefits of their SASE implementations. As per the survey, a lack of budget and other business plans are also hindering the adoption of SASE technology.

Opportunity: Rising adoption of 5G services to improve communication infrastructure

5G and edge computing are two linked technologies. They are both poised to significantly improve the performance of applications and enable huge amounts of data to be processed in real-time. 5G increases speed by up to ten times that of 4G, whereas mobile edge computing reduces latency by bringing compute capabilities into the network closer to the end user. 5G will provide the technology boost to support Ultra Reliable Low Latency Communication (URLLC) that enables applications such as V2X and Telesurgery, Cobots. These applications require end-to-end latency to be in milliseconds. 5G will also provide Enhanced Mobile Broadband (eMBB) capability for use cases that involve large data rates, such as augmented reality and virtual reality. As per the Ericsson Mobility Report November 2022, North America and Northeast Asia are expected to have the highest 5G subscription penetration by the end of 2022, followed by the Gulf Cooperation Council countries at 20% and Western Europe at 11%. In the Gulf Cooperation Council, the demand is driven by the increased vigorous competition combined with the right regulatory environment, have contributed to the fast acceleration of the 5G market. The report also states that 5G subscriptions are forecast to reach 5 billion in 2028. The key factors to drive this include the availability of devices from vendors, falling prices, and early 5G developments in China. The developments in 5G will likely boost edge security solutions' adoption during the forecast period.

Challenge: Managing highly distributed environments

Managing any large-scale edge architecture is managing hundreds or even thousands of smaller IT environments. Manually updating tasks, such as configuration management, OS patches, and other software updates, is tedious. Deploying and operating large-scale distributed infrastructures is challenging enough without throwing randomness and silos into the mix. Thus, automation and management are essential for tasks such as mass configuration, taking actions in response to events, and centralized application updates. Standardized operating system configurations and cluster orchestration are essential for managing edge computing environments.

Edge Security Market Ecosystem

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Based on services, managed services segment to grow at a higher CAGR during the forecast period

Managed services mostly revolve around the term "outsourcing." Managed services, including managing databases and collecting data, are outsourced to Managed Service Providers (MSPs). Managed Security Service Providers (MSSPs) provide specialized security services to other companies. Managed Security Services (MSSs) are available in many forms, such as pure system management, sophisticated fraud investigators, on-premises device monitoring and management services, and cloud services. The managed services market is highly fragmented and comprises vendors from diverse backgrounds, ranging from specialized MSS providers to security professionals, system integrators, and VARs. Since these services require attention regularly, it becomes difficult for enterprises to manage them and their core business operations. As a result, companies are rapidly outsourcing their edge security services to specialized providers known as MSSPs.

Based on deployment modes, the cloud deployment model to grow at a higher CAGR during the forecast period

A distributed edge evolution increases the attack surface and reinforces the need for security at each location. Cloud-based edge security solutions offer a solution for multi-cloud, hybrid-cloud, and multi-tenant edge deployments. It offers proven solutions for IoT, API, LAN, and application security by enabling a zero-trust security model across all edge locations. Cloud-based edge security solutions eliminate the challenges of managing legacy application-based solutions.

Based on verticals, healthcare vertical to grow at the highest CAGR during the forecast period

The healthcare vertical covers personal health information and critical patient data. Data security is, therefore, of utmost importance to healthcare organizations. Healthcare organizations use network security technology to prevent the theft of patients' medical records. Edge security solutions help healthcare professionals secure personal health information stored on edge devices, such as IoT devices and sensors. Furthermore, data, file, and folder network security help healthcare professionals ensure the security and privacy of confidential data, financial transactions, and medical records related to patients. Moreover, using edge security technology helps improve the proficiency of the clinical and IT staff and provides real-time access in case of emergencies.

Additionally, implementing regulatory standards, such as HIPAA, is driving healthcare organizations' adoption of edge security. The regulatory standards also help secure sensitive data, protect identities by providing digital signatures, secure network gateways, and encrypting databases. With the rising use of edge security solutions and increasing awareness of regulatory compliances, the adoption of edge security technology is expected to grow in developing countries.

Asia Pacific to grow at highest CAGR during the forecast period

Digital technology has expanded the growth opportunities in the Asia Pacific region. The region comprises various developed economies such as China, Japan, Australia & New Zealand. As a region, there is significant strength and expertise in Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). This is likely to drive the edge security market growth in the region. However, the adoption rate is low in the Asia Pacific region compared to North America and Europe. This is mainly due to the lack of skilled cybersecurity professionals and awareness among top IT professionals as per the Sophos Future of Cybersecurity Asia Pacific and Japan 2022.

The growing demand for cloud computing across the Asia Pacific region is driving the demand for cloud networking services, particularly with the outbreak of COVID-19. In Asia Pacific, organizations across telecommunications, government and defense, financial services, manufacturing, and sovereign cloud providers have been the most receptive to adopting cloud networking. Cloud networking can play a vital role in addressing growing infrastructure needs and regional expansion challenges in the region. Further, the smart city initiative in the region is driving investments in AI and connected devices. SASE solution providers are entering the region to support remote operations. For instance, in January 2021, Sangfor Technologies expanded its SASE services in the Asia Pacific region. 

Key Market Players

The edge security market is dominated by companies such as Palo Alto Networks (US), Check Point (Israel), Broadcom (US), Fortinet (US), Cisco (US), Zscaler (US), Cloudflare (US), Forcepoint (US), VMware (US), Citrix (US), Akamai (US), Juniper Networks (US), Netskope (US), Trend Micro (Japan), Proofpoint (US), Barracuda (US), Sophos (UK), SonicWall (US), Infoblox (US), Open Systems (US), F5 (US), Lookout (US), and iboss (US). These vendors have a large customer base and a strong geographic presence with distribution channels globally to drive business revenue and growth.

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Scope of the Report

Edge Security Market Highlights

This research report categorizes the Edge Security Market to forecast revenues and analyze trends in each of the following submarkets:

Recent Developments

• In October 2022, Fortinet announced significant cloud-delivered enhancements to FortiSASE to enable secure internet access that ensures consistent security for all user traffic to and from the internet. FortiSASE now includes new updates enhancing support for secure private and SaaS access cases.
• In February 2022, Check Point acquired Spectral, an innovator in automated code security. With this acquisition, Check Point would enhance its Cloud Guard solution with a developer-first security platform and provide the widest range of cloud application security.
• In November 2021, Palo Alto Networks launched Next-Generation CASB to help organizations secure high SaaS usage. The solution would offer a cloud access security broker to align with changing enterprise needs.
• In March 2021, Cisco launched the SASE offering with the ability to offer all core components in a single solution. It also provides the flexibility to transit to a unified subscription service in the future. Cisco simplifies networking and security operations with an expanded SASE architecture and unveils innovations to the cloud-native platform, SecureX.
• In March 2020, Broadcom updated its previous software Symantec Endpoint with new features where admins can now add privileges, such as running a live update, quick and full scan, quarantine, and reboot. FDR and EDR searches are also updated. The company is also launching a policy update soon.

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