Firewall as a Service Market Size By Product (Firewalls [Proxy Servers, Stateful Inspection Firewall, Unified threat management (UTM), Next-generation Firewall (NGFW)], Management Software/Tools [Auditing & Compliance, Cloud Security, Connectivity Management, Automation, Backup & Recovery]), By Application (BFSI, Healthcare, Government, Retail, Education, Manufacturing), By Service Model (SaaS, IaaS, PaaS), By Delivery Model (Public, Private, Hybrid), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2017 - 2024
Published Date: Oct 2017 | Report ID: GMI2125 | Authors: Ankita Bhutani, Preeti Wadhwani
Firewall as a Service Market size crossed USD 500 million in 2016 and is anticipated to witness over 25% gains from 2017 to 2024.
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The Firewall as a Service market is growing due to increasing adoption of technologies by organizations such as BYOD, mobilization, and cloud computing. Also, the demand fosters due to their cost-effectiveness and real-time functionalities capabilities. The increase in cybercrimes around the globe, especially North America has raised alarms for many organizations towards security of their information. The different forms of cybercrimes such as ransom is increasing rapidly in the region, leading to business interruptions and financial losses. There has been tremendous growth in cyberattacks from Iran, Russia, and China posing threats to the region. According to the U.S government, every year there is an increase of 20% in the attacks costing more than USD 30 million loss to the economy.
|Base Year:||2016||Market Size in 2016:||500 Million (USD)|
|Historical Data for:||2013 to 2016||Forecast Period:||2017 to 2024|
|Forecast Period 2017 to 2024 CAGR:||25%||2024 Value Projection:||2.5 Billion (USD)|
|Pages:||250||Tables, Charts & Figures:||231|
|Geographies covered (15):||U.S., Canada, UK, Germany, France, Italy, China, India, Japan, South Korea, Australia, Brazil, Mexico, GCC, South Africa|
|Segments covered:||Product, Application, Service Model, Delivery Model and Region|
|Companies covered (18):||CheckPoint Software Technologies, Palo Alto Networks, Fortinet Inc., Cisco Systems Inc., Intel (McAfee), Hewlett Packard Enterprise, Symantec, Tufin, Skybox Security, Firemon, Algosec, FireEye, Zscaler, Watchguard, F5 Networks, Juniper Networks, Barracuda Networks, Cato Networks|
|Pitfalls & Challenges:||
Unified Threat Management (UTM) technology is expected to hold major share in the global revenue with a share of over 50% in 2024 owing to the high adoption of firewall appliances by large enterprises. The organizations are experiencing trends such as virtualization, web applications, and BYOD. With the development of trends, organizations need to prepare for emergency security risks in the networks along with both internal and external threats. Due to this, enterprises started adopting UTM devices and solutions. The Firewall as a Service (FWaaS) market is quite competitive with a mixture of small and large providers, security, and cloud providers. UTM is considered the best for SMEs as it has an inbuilt feature of secure wireless LAN support that is mostly utilized by SMEs rather than larger enterprises. Now, vendors are trying to focus on integrating features such as DLP, web applications, and email security.
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The retail segment is anticipated to exhibit high growth of over 21% CAGR from 2017 to 2024 due to growing data security breach, which can erode the customer belief and confidence, impacting the entire value chain and incur penalties. FWaaS protects retailers from attacks, such as malware, thefts, and remote threats, while maintaining connectivity for transactions. As the retail industry deals with thousands or millions of credit and debit cards with all the financial information within their networks, attackers have a good reason to target the industry and achieve their goals. The information breach will result in negative publicity and a temporary loss; thus, retail organizations are using firewalls to protect their network and maintain compliance.
The education segment is projected to exhibit substantial growth in the Firewall as a Service market over the forecast timeline due to increase in the use of BYOD and mobile computing by students, faculty, and administrators. Educational organizations should scale bandwidth and offer secure access. All the sensitive information needs to be secured and compliance standards such as HIPAA, CIPA, and FERPA should be met to protect students. However, with the lack of funds and infrastructure, the market for education will have challenges in attracting the untapped market.
By Delivery Model
The public delivery model held major Firewall as a Service market share and is anticipated to maintain the market share over the forecast timeline due to growing FWaaS deployment across SMEs. It is a multi-tenant environment where the computing space is shared within numerous clients. The organizations are strategizing toward public cloud to more rapidly build, test, and release software products. The adoption of public cloud is rapid in SMEs due to cost competitiveness in the market. The market for the public computing model will grow due to benefits such as improved reliability, cost-effectiveness and pay-as-you-go.
The private delivery model segment is projected to register substantial growth rate over the forecast timeline due to increase in the use of camera-equipped devices and has also created the demand for a secure platform for storing digital content. The market for private cloud will improve over the forecast period due to increase in complexity of clouds, hybrid integration, and security concerns for public cloud. As private cloud matures, growth will enter a different phase driven by the flexibility and ease of management rather than cost-effectiveness or security. However, the skills gap in implementing and managing private cloud will hamper the market growth, driving customers to go for vendors that deliver end-to-end solutions.
By Service Model
The SaaS model is projected to exhibit significant growth over the forecast timeline due to the increase in SaaS applications by enterprises. It reduces the operational cost of enterprises. The use of the SaaS model will reduce the cost of ownership as it removes the need for technical staff to manage, update, and reduce the cost of licensing software. The market for SaaS is increasing due to the use of mobile applications and BYOD in enterprises, improving the market for network security infrastructure.
The IaaS segment held a significant Firewall as a Service (FWaaS) market share in 2016 due to its flexible computing model that allows automated deployment of servers, storage, networking, and power. The main use of this service model is the deployment of PaaS, SaaS, and web-scale applications. The market for IaaS will improve as it builds a virtual data center in the cloud and gets access to technologies and capabilities of traditional data centers without investing in capacity planning. Also IaaS can economically accommodate unexpected or changing workloads.
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North America Firewall as a Service market held the largest revenue share in 2016 and is estimated to dominate the market share over the forecast timeline due to increase in the number of internal threats. More than 80% of the Americans are using internet on a daily basis and the internet penetration is quite high in the U.S. This access on internet with the integration of technologies has made the region a leader in the cloud firewall market. The market will grow over the forecast period due to increase in the number of cyber-crimes and rise in data thefts, forcing organizations to use cloud firewall solutions.
Europe market is projected to exhibit a substantial CAGR over the forecast timeline due to growing cyber-crimes and data thefts across several organizations. There have been accusations against organizations of not protecting customers data and moreover, the government is trying to come up with stringent regulations regarding customer privacy, helping the firewall market to grow. Also, the internet penetration in the region is around 75%, attracting a lot of malware and viruses to halt the internal network. In some countries of Europe, the internet penetration is more than 90%, which requires proper firewall techniques so that companies and private individuals are safe from cyber-attacks.
Competitive Market Share
The FWaaS market is competitive due to strategic alliances between cloud service providers and prominent firewall application providers. The market dynamics is changing substantially due to the entry of new market players and innovations by established players. Prominent market players operating in the market include Algosec, Cisco, Palo Alto Networks, Firemon, IBM, Checkpoint, Fortinet, McAfee, FireEye, Sophos, Tufin, Symantec, Skybox Security and Watchguard. The market players are investing heftily in R&D to innovate and expand their product lines. For instance, Palo Alto Networks increased its spending in R&D from about USD 185 million in 2015 to USD 284.2 million in 2016, which helped the enterprise to launch three new products for data centers and large enterprises.
Technological advancements, such as big data, IoT, and BYOD is going to transform the market in long term. For instance, the recent development of the BYOD has resulted into more crucial information that is being circulated in the network, giving an opportunity for the hackers to gain access to huge volume of information. This has resulted into offering tremendous opportunity for the security providers to come up with customized solutions that will track the malware and offer solutions to further prevent it. The increase in cyber-attacks has spurred the demand security solutions. Also, the data protection authorities have become more stringent with imposition of penalties and releasing the names of the companies which are not able to protect their customer’s data.
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