Network Security Market

The global Network Security Market size accounted for USD 78.2 Billion in 2024 and is estimated to achieve a market size of USD 111.0 Billion by 2029 growing at a CAGR of 7.2% from 2024 to 2029. The adoption of network security solutions is on the rise with the increasing frequency and sophistication of network attacks, such as Distributed Denial of Service (DDoS) attacks, Man-in-the-Middle (MitM) Attacks, and DNS Spoofing. There is an expansion of attack surfaces as businesses digitize and adopt cloud services, making them more vulnerable. This trend is further aggravated by the growth of the remote workforce and IoT devices, pushing organizations to invest in solid network security measures that guarantee data protection and business continuity and offer support to comply with different regulatory requirements. Growing awareness of cybersecurity risks fosters the requirement for advanced network security solutions across the globe.

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IMPACT OF AI/GEN AI ON THE NETWORK SECURITY MARKET

Generative AI (GenAI), a subset of AI that focuses on creating new content and data, is revolutionizing various sectors by automating creative processes, enhancing data analysis, and providing innovative solutions. Gen AI's forefront function is in its domain and network security solution delivery, which aids both threat detection and response and overall cybersecurity resilience across the board.

NETWORK SECURITY MARKET DYNAMICS

Driver: Increasing cyber threats spur demand for robust network security solutions

Technological advancements have led to a surge in adopting digital solutions, connected devices, and IT systems. The digital infrastructure facilitates access to business data and applications from any user across different platforms and devices. As a result, hackers are increasingly employing modern means of breaching IT infrastructures to extract business-critical information. Any network security weakness, such as flaws with software or physical devices, provides an opportunity for cyber attackers and unauthorized entities to exploit. Hence, various small-scale industries are adopting Network Security as a protective cover, which can provide multiple layers of data protection. According to the US Cybersecurity and Infrastructure Security Agency (CISA), in February 2024, a network owned by an undisclosed state government entity was breached by using credentials attributed to a former employee who served as administrator on CISA's networks. IBM’s 2024 Cost of a Data Breach Report estimates that the global average cost of a network data breach has hit a record USD 4.88 million, a 10% increase from 2023 and the most significant rise since the pandemic due to parameters such as the expansion of distributed cloud resources and security staffing shortages.

Restraint: High Implementation Costs

Modern network security solutions, such as secure access service edge (SASE) and next-generation firewalls (NGFWs), are often too expensive to deploy, risking SME budgets. These solutions also involve investment in the purchase maintenance and updates while pushing support issues. In this case, the financial barrier emphasizes the vitality of affordable network security solutions customized to small businesses' demands.

Opportunity: Rising Implementation of SASE Framework

The secure access service edge (SASE) framework offers tremendous opportunities to deliver integrated, cloud-native security solutions that address the complexities of modern IT infrastructure. SASE simplifies management and optimizes security for distributed environments by consolidating multiple security and network functions—such as secure web gateways, cloud access security brokers, and zero-trust network access—into a single, cloud-delivered service

For example, SASE could significantly benefit a global enterprise with a remote workforce and cloud-based applications. Traditionally, this organization would have had to set up and manage separate security solutions for its various branches, remote employees, and cloud services, resulting in complexity and potential security breaches. SASE can be used to integrate these operations into a unified platform that provides consistent security policies and real-time protection across all user access points and data flows. This integration simplifies security management and improves the ability to implement policies uniformly, regardless of users' location or devices.

Challenge: Complexity of IT Environments

The need to secure an extensive array of on-premises infrastructure, cloud services, mobile devices, and IoT devices leads to the complexity of modern IT environments. Each device has distinct security requirements, making implementing a unified, adaptable network security strategy challenging. Managing and integrating security across such a distributed landscape is challenging, as it requires consistent protection, monitoring, and compliance, which often results in gaps and vulnerabilities that attackers can exploit.

Network Security Market Ecosystem

Based on solutions, the data loss prevention segment is expected to grow at the highest CAGR during the forecast period.

Data Loss Prevention (DLP) is a cybersecurity solution targeted at the detection and prevention of data infringement by blocking the extraction of sensitive data. Companies have adopted DLP to boost in-house security and achieve the required regulatory compliance. DLP services aid companies in data loss identification, unauthorized transfers of data out of the organization, and the protection of sensitive personal identification information (PII) from being improperly destroyed. It also assists organizations in adhering to regulations like the California Consumer Privacy Act (CCPA), the EU General Data Protection Regulation (GDPR), and the Health Insurance Portability and Accountability Act (HIPAA). "Data loss" and "data leakage prevention" are two terms that are usually used interchangeably. DLP solution providers include Broadcom, Check Point, Zscaler, Microsoft, and Sophos.

The cloud deployment mode is expected to grow at the highest CAGR during the forecast period.

The cloud deployment mode involves storing applications and software on remote servers and providing access through the internet. The cloud deployment mode is growing fastest in the network security market. SMEs have implemented cloud deployment, enabling them to focus on their core competencies rather than spending their limited capital on security infrastructure. The cloud-based network security solutions are also easy to maintain and upgrade. These factors fuel the growth of this segment.

Based on region, North America is expected to account for the largest market share during the forecast period.

North America is expected to dominate the network security market during the forecast period. The US holds the largest revenue share, as most network security solution providers are constantly involved in the development of innovative products and their deployment/testing. Key financial institutions, healthcare organizations, and retailers in North America are often primary targets for cyber-attacks. Well-established companies and startups, such as Cisco, IBM, Palo Alto Networks, Juniper Networks, and Check Point, which offer network security solutions, are based in North America. In July 2024, a faulty CrowdStrike Falcon update caused an extensive global IT outage impacting approximately 8.5 million Windows workstations. Threat actors quickly exploited the situation to conduct scams, pilfer data, and deploy malware. Since then, numerous security experts and organizations, including SentinelOne and Bolster, have identified multiple malicious domains. Bolster’s CheckPhish URL scanning platform noticed a surge in malicious sites immediately following the incident.

Key Players

The key players in the network security market Cisco (US), Palo Alto Networks (US), Fortinet (US), Check Point (US), Trend Micro (Japan), Verizon (US),IBM (US), Broadcom (US), Juniper Networks (US), Akamai (US), Netskope (US), Microsoft (US), CrowdStrike (US), Zscaler (US), Cloudflare (US), and others.

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Scope of the Report

The study categorizes the network security market by segments - offering, enforcement point, deployment mode, organization size, vertical, and region.

By Solution:

• Firewall / NGFW
• VPN
• Network Access Control (NAC)
• Data Loss Prevention (DLP)
• Intrusion Detection System/Intrusion Prevention System (IDS/IPS)
• Secure Web Gateways (SWG)
• Distributed Denial-of-Service (DDoS) Mitigation
• Unified Threat Management (UTM)
• Others

By Service:

• Professional
  • Design, Consulting, & Implementation
  • Risk & Threat Assessment
  • Training & Education
  • Support & Maintenance
• Managed

By Network Environment:

• Branch Campus Network Security
• Data Centre Netw0rk Security

By Deployment Mode:

• On-Premise
• Cloud
• Hybrid

By Organization Size:

• SMEs
• Large Enterprises
• Vertical:
• BFSI
• Healthcare
• Government
• IT and ITeS
• Telecommunication
• Manufacturing
• Retail & eCommerce
• Energy & Utilities
• Education
• Other Verticals

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Recent Developments

• In June 2024, Check Point unveiled CloudGuard WAF-as-a-Service (WAFaaS), an automated web application firewall powered by AI. This fully managed solution was intended to help organizations prevent cyber threats and safeguard web applications from unauthorized access and data breaches. WAFaaS aimed to provide a streamlined and cost-effective method for securing cloud applications and APIs by emphasizing prevention, ease of usage, and scalability.
• In May 2024, Fortinet introduced the FortiGate 200G, a next-generation firewall (NGFW) developed for modern campus environments. The product is built to run on FortiOS and the SP5 security processing unit. Hence, throughput is improved, whereas the AI-based FortiGuard Security Services provide an additional advantage and 5GE ports for Wi-Fi 7; thus, secure, high-speed support is available for data-rich traffic and cloud-based applications.
• In April 2024, Cisco acquired Isovalent, an open-source cloud-native networking and security leader. This marked a significant step forward in Cisco’s commitment to defining the future of secure, multi-cloud networking.

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