Firewall as a Service Market - Forecasts from 2024 to 2029

Firewall as a Service Market - Forecasts from 2024 to 2029

The Firewall as a Service market is evaluated at US$2.471 billion for the year 2022 and is projected to grow at a CAGR of 18.05% to reach a market size of US$7.897 billion by the year 2029.

A firewall is used as a barrier for the prevention of unauthorized access to a company’s network. A firewall system proactively monitors all the outgoing as well as incoming data traffic, along with enforcing and applying the security policies of the organization. Furthermore, better recovery from disasters offered by the utilization of firewall as a service along with the migration to cloud-based platforms and a significant increase in the use of mobile devices is leading to a lack of clear perimeters in the network where the requirement for safeguarding the users and applications is a major concern.

As security threats are increasing, there is a rising risk of disasters that can lead to high costs regarding the reputation and resources of an organization. The adoption of the firewall as a service can help the organization to mitigate or minimize the level of disasters as the service provider’s IT experts work on a proactive basis for the detection of new threats, which is one of the key factors for driving its adoption in numerous companies across different industry verticals.

The adoption of the firewall as a service also reduces the cost burden as no training and IT staffing are required by the company. All operations are carried out by professionals with the necessary skills who work solely for the service provider. Furthermore, consultations are also provided by these teams to the companies, which help to frame the security policies and regulations.

MARKET TRENDS:

The market growth is majorly attributed to the rising cases and the severity of cyber-attacks across the world. This is further leading to rising investments by companies to protect their network infrastructure, which is augmenting the demand for these services. Furthermore, high initial setup costs coupled with much higher maintenance of that infrastructure is another factor that is further propelling the adoption of the firewall as a service, thus positively impacting the market growth.

In addition, the facilities such as easy up-gradation and alterations to the firewall protocols, which are offered by the service providers, are also increasing the adoption among the numerous end-users, thereby adding to the market growth significantly.

The rapid growth in cloud-based applications coupled with the growing risk of a data breach, especially on public cloud platforms, is also a key factor that is positively impacting the adoption of the firewall as a service. In addition, the continuously changing firewall protocols for companies are also projected to propel the market growth of the firewall as a service. The increasing traffic of data over cloud networks is also leading to the increased adoption of various security solutions by numerous organizations across industries, primarily due to growing concerns about the security of critical data on their respective cloud networks, which is contributing to market growth.

MARKET DRIVERS:

Increasing cyber threats are anticipated to propel the firewall as a service market.

Firewalls as a service are in high demand due to the increasing frequency and sophistication of cyber attacks. Businesses are realising more and more that to protect their digital assets from ever-changing cyberattacks, they must take preventative action. In dynamic and dispersed computing settings, a firewall as a service helps enterprises improve their security posture by providing real-time threat detection and prevention capabilities.

Since cloud-based security solutions offer scalable and adaptable solutions designed to handle the intricacies associated with contemporary cyber threats and the transfer of IT infrastructure to cloud environments, the growth in cyber risks serves as a stimulus for the adoption of these security measures.
The growing adoption of cloud computing might impact market growth.

Another significant factor propelling the FWaaS market is the expanding use of cloud computing. More businesses are shifting their workloads to the cloud, necessitating the need for security solutions that are simple to implement and maintain in a cloud environment. Since FWaaS can be provided as a cloud-based service, it is a good fit for this requirement.
Software as a Service is anticipated to show robust growth throughout the forecast period.

Based on the service model, the global firewall as a service market is classified into Infrastructure as a Service, Platform as a Service, and Software as a Service. The Software as a Service (SaaS) segment is expected to show notable growth throughout the forecast period on account of the rising adoption of SaaS applications by companies in various industries. Further, the adoption of software as a service helps in the reduction of operational costs incurred by organizations as there is a very low requirement for the training and development of technical staff.

The Infrastructure as a Service (IaaS) market is anticipated to hold a decent share of the market due to the numerous benefits from the utilization of these services. The growing trend of virtual data centers in the cloud is also considered a key factor that will positively impact market growth.

Public deployment is predicted to hold a decent market share.

Based on the deployment model, the global firewall as a service market is segmented into public, private, and cloud. The public deployment of firewall services is anticipated to hold a good share in the global market since there is a high adoption rate of the firewall as a service across SMEs due to the rising budgets of SMEs to invest in data security coupled with the growing amount of data in these organizations. Public deployment is a multi-tenant environment where the computing space can be shared between several clients.

Furthermore, the increasing competitiveness of SMEs is also considered one of the key factors that are propelling the adoption of the public cloud since it offers high-cost efficiency to organizations with low risk-bearing capabilities.
Communication and Technology are expected to grow substantially.

Based on the end-user industry, the firewall as a service market is segmented into BFSI, communication and technology, media and entertainment, retail, government, and others. The communication and technology segment is expected to show good growth opportunities on account of the rising trend of digitization and the growing adoption of cloud-based storage services, along with the generation of a large amount of data, which is positively impacting the demand for these services in this sector.

The retail segment is also projected to show decent growth over the forecast period due to rising competition among retailers coupled with growing concerns over data security. The retail sector is growing across the globe due to rising disposable income and a growing middle-class population.

North America is anticipated to be the major regional market.

The firewall as a service market in the North American region is expected to hold a significant share during the forecast period. With a powerful combination of variables driving the firewall as a service (FWaaS) business, North America is the market leader. Advanced security is necessary due to the constant danger of sophisticated cyberattacks, and FWaaS provides a defense against them. Since FWaaS is scalable and compliant, it is a great choice for enterprises embracing cloud computing and navigating complex data protection requirements.

Managed FWaaS solutions benefit from the cybersecurity talent gap, and investment in prevention is encouraged by growing awareness of the financial implications associated with assaults. North America also adopts new security trends and has a strong FWaaS player base, which keeps the industry at the forefront of innovation. Although there are obstacles to overcome, such as data privacy issues and integration difficulties, the North American FWaaS industry is well-positioned to maintain its leadership and grow.

Key Developments:

In April 2023, the cloud provider that enables and safeguards life online, Akamai Technologies, Inc., announced the release of its Prolexic Network Cloud Firewall. With more freedom to safeguard their network edge, clients may now design and maintain their access control lists (ACLs) owing to the new feature of Akamai Prolexic.
In February 2023, the global pioneer in unified cybersecurity WatchGuard® Technologies announced the launch of its new tabletop firewall appliances, the Firebox T25/T25-W, T45/T45-POE/T45-W-POE, and T85-POE.
In March 2022, Ten-time leader in network firewalls Palo Alto Networks announced that it has partnered with Amazon Web Services (AWS) to introduce Palo Alto Networks Cloud NGFW for AWS, a managed Next-Generation Firewall (NGFW) service made to make AWS deployment security easier and allow businesses to innovate more quickly without sacrificing security.

Segmentation:

By Service Model
Infrastructure as a Service (IaaS)
Platform as a Service (PaaS)
Software as a Service (SaaS)
By Deployment Model
Public
Private
Hybrid
By Enterprise Size
Small
Medium
Large
By End-User Industry
BFSI
Communication and Technology
Media and Entertainment
Retail
Government
Others
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Taiwan
Thailand
Indonesia
Others