Network Security Market Size, Share & Industry Analysis, By Deployment (Cloud and On-premise), By Type (Firewalls, Antivirus and Antimalware Software, VPN, Wireless Security, and Others), By Enterprise Type (Small & Medium Enterprises and Large Enterprises), By Industry (BFSI, IT and Telecommunications, Retail, Healthcare, Government, Manufacturing, Travel and Transportation, Energy and Utilities, and Others), and Region Forecast, 2024-2032

The global network security market size was valued at USD 23.83 billion in 2023 and is projected to grow from USD 26.57 billion in 2024 to USD 67.33 billion by 2032, exhibiting a CAGR of 12.3% during the forecast period (2024-2032). The rising number of startups and increasing internet penetration across developing countries will drive the demand for advanced software. Furthermore, end-user organizations are adopting the Bring Your Own Device (BYOD) service that requires secure network connections. Moreover, industries, such as healthcare and retail are dealing with network security concerns. As a result, these industries are implementing advanced security technologies that can increase their security. Unauthorized access, distributed denial of service (DDoS) attacks, insider threats and different phishing attacks are the types of network attacks through which organizations can lose data.

Key market players are developing advanced network security products to enhance their market presence. For instance, in February 2021, Check Point Software Technologies Ltd. launched a comprehensive ‘quantum spark series’ of security gateways to protect small & medium-sized enterprises from advanced cyber threats. quantum spark series offers services, such as automated threat prevention, automatic set-up flexible network connectivity, protection for remote employees & cloud applications, and intuitive management of mobile applications. Also, key players are offering various security solutions for network infrastructure. For instance, Kaspersky launched an Operational Technology (OT) network protection solution. Similarly, Corsa offers Service Providers (SPs) and Managed Security Service Providers (MSSPs) to offer a virtualized Firewall as a Service. These factors are expected to boost the network security market growth.

The COVID-19 situation compelled enterprises across the world to prioritize e-learning and remote working platforms. According to Check Point Software Technologies Ltd, in 2021, 81% of businesses have implemented remote working for their workforces, and 74% plan to do so indefinitely.

With the growing popularity of remote working, business networks have seen increased access requests. This factor resulted in increased traffic levels, thereby raising the quantity of data encryption traffic coming to the company network. As a result, the need for an advanced network security solution is anticipated to grow. Furthermore, these solutions are projected to gain popularity in specific businesses even after the crisis.

Network Security Market Trends

Rising Trend of Implementing 5G across Large Organizations to Boost Market Growth

The adoption of 5G technology is rapidly increasing. 5G delivers enhanced network solutions that allow devices to function at high speeds while improving bandwidth usage, dependability, and latency. As a result, 5G has seen widespread acceptance in technologies, such as Machine Learning (ML), industrial IoT, Artificial Intelligence (AI), and others. As 5G technology is increasingly integrated with commercial applications, more data is expected to be shared over the network, posing new threats to data security. Cyber attackers pose a concern not only to 5G service providers, but also to users. The increasing use of 5G services is expected to increase demand for security solutions.

5G technology is being integrated with IoT to improve data transfer in applications, such as driverless cars, robotic process automation, virtual reality, augmented reality, smart cities, and others. These applications continually share data over the internet with critical analysis that requires a high-speed and capacity connection. 5G is anticipated to offer users the desired speeds.

As a result, the increasing trend of deploying 5G services is expected to boost the growth of this market throughout the forecast period.

Network Security Market Growth Factors

Increasing Cyber Threats at Network Point to Boost Demand for Security Solutions

With advancement in technologies across the world, the adoption of digital solutions, connected devices, and IT systems is increasing. The digital infrastructure is being developed to exchange business data and applications across digital platforms, devices, and users. As a result, hackers are increasingly employing flawless hacking tactics to breach an organization's IT infrastructure to access critical business information. Network security vulnerabilities are the weak points in software or in any physical devices that bring opportunities for cyber attackers and unauthorized outsiders. This factor is responsible for the adoption of network security measures across different sizes of organizations to protect the data.

Furthermore, the level of protection against attackers in the corporate sector was found to be extremely low. According to a report by Kaspersky Lab, more than 40% of companies do not have an efficient cybersecurity infrastructure. The report further stated that nearly 73% of successful perimeter breaches in the corporate sector were conducted by penetrating vulnerable web applications. Furthermore, the rise in cyber threats is anticipated to drive the demand for solutions and boost the overall market growth.

Rising Bring Your Own Device (BYOD) Policies in Organizations to Boost Solution Demand

Organizations are encouraging workers to bring their own devices to work, which helps reduce system investments. BYOD allows employees to work from anywhere. An employee’s devices may access the information since they are linked to the company's network.

Rising usage of BYOD policies propels the demand for implementing advanced network security services by adopting antivirus for password protection and multi-factor authentication to keep the network secure.

In addition, the growing implementation of BYOD policy has prompted companies to offer network security solutions. In logistics, for example, an employer is linked to multiple vendors and exchanges data. This factor raises the possibility of data leaks, making the adoption of these solutions even more important. The growing use of BYOD policies in enterprises is expected to boost the overall market growth during the projected period.

RESTRAINING FACTORS

Low Security Budget by Companies Likely to Hamper the Adoption of Security Solutions

Almost every business faces challenges in dealing with the lack of authentic data security and threats. Companies are still failing to allocate the necessary funds for network security solutions. Also, the initial setup cost of this software is high, and it requires consistent examination, which is expected to hamper its adoption for a short period.

Despite the high cost of solutions and rising number of attacks, small and medium businesses may adopt affordable security solutions based on their needs and operations.

Network Security Market Segmentation Analysis

By Deployment Analysis

Rising Adoption of Advanced Technologies will Boost the Demand for Cloud-based Solutions

Based on deployment, the market is divided into on-premises and cloud.

The cloud segment is expected to hold the largest market share during the forecast period. The rising use of artificial intelligence, machine learning, Internet of Things (IoT), and others is compelling enterprises to embrace cloud-based solutions. With the support of real-time setup, cloud-based software enables enterprises to grow their business swiftly. As a result of these factors, the acceptance of cloud-based security deployment is increasing at a faster rate.

By Type Analysis

Firewall to Gain Traction Backed by Increasing Adoption of Solutions

Based on type, the market is categorized into firewalls, antivirus and antimalware software, VPN, wireless security, and others (data loss prevention, intrusion prevention systems).

The firewall is expected to hold a largest market share. The adoption of firewall security is rising across every industry, thus contributing to the highest revenue share. A firewall monitors the incoming and outgoing files to the IP address, authentic source, and ports & protocols. Firewall services and software act as barriers and prevent unauthorized access to data.

With recent security improvements, the acceptance of intrusion prevention solutions is growing. These solutions have the capacity to block threats rather than just detect them.

By Enterprise Type Analysis

Large Enterprises to Lead Market Growth Due to Rising Threat of Cyberattacks

By enterprise type, the market is categorized into small & medium enterprises and large enterprises.

The large enterprises segment is expected to hold a large share of the market. Large enterprises have witnessed a growing number of cyberattacks in the last few years. As a result, they reserve a larger portion of the budget for security. Also, growing security awareness and increased cyberattacks will encourage small and medium-sized businesses to adopt innovative network security solutions, further strengthening the market potential. In addition, this will lead to higher adoption of these solutions in large enterprises and drive the market's growth.

Small and medium enterprises are targeted by hackers to disrupt their growth. As a result, they experience significant financial losses, and their private data is exploited. Therefore, SMEs also require secure networks. Startups are investing in security solutions with the support of government programs and funds. The usage of this antivirus software by small and medium-sized businesses is expected to increase gradually in the future. It will also further accelerate the market's growth.

By Industry Analysis

IT and Telecommunication Dominates the Market Owing to Increase in Data Breaches and Network Attacks

By industry, the market is categorized into BFSI, IT and telecommunications, retail, healthcare, government, manufacturing, travel and transportation, energy and utilities, and others.

The IT and telecommunications segment is predicted to gain the largest market share, followed by government and BFSI sectors. The IT industry stores a significant quantity of private data from its shareholders. Throughout the years, the segment has been subjected to the most severe threats and attacks. Furthermore, the growing popularity of mobile banking raises the potential for network attacks and data breaches in the BFSI sector. This factor will result in the implementation of security solutions.

The government segment is expected to have a significant market share due to the huge amounts of confidential public and official data being provided for online processes.

The healthcare segment is expected to grow significantly during the analysis period. Information security and privacy are becoming increasingly important in the healthcare business. To lower operating costs and improve healthcare services, key companies are investing in emerging technologies, such as cloud computing, natural language processing, artificial intelligence, and IoT.

In addition, there is an increase in the use of Electronic Health Records (EHR) to hold sensitive patient information in hospitals. With the widespread use of medical insurance and claims, massive amounts of data are shared among patients, providers, and payers, thereby accelerating the requirement for network information security. The healthcare business faces threats as it adopts new technologies, such as EHR, artificial intelligence, and others, to improve process efficiency.

Similarly, the retail segment is creating and extending its e-commerce solutions. A majority of the industry's data is saved on cloud. Customers can access e-commerce services on their mobile devices and laptops over the internet. As a result, this segment has a high requirement for a private network. During the projected period, the retail segment is predicted to expand rapidly.

REGIONAL INSIGHTS

By region, the market is segmented into five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America is anticipated to capture the maximum network security market share due to the rising implementation of these type of security solutions by large enterprises across the region. Furthermore, the U.S. has the highest growth rate in terms of software adoption. Top industries, such as healthcare, BFSI, and retail heavily utilize various software to protect their data. The U.S. is modernizing the current software while also creating security solutions; it has submitted the most protection patents in the market. Canada is also anticipated to witness a steady adoption of network security solutions. In April 2023, recommendations were issued to prevent cyberattacks against the growing number of digital infrastructures through a joint effort between the U.S., the U.K., Australia, Canada, and New Zealand.

Europe is also developing with a steady growth rate in the market. During 2014-2020, the region invested approximately USD 707.6 million in research and innovation in network and information security. Most organizations in the U.K. provide safe network solutions, professional cyber services, and information risk assessment & management. Similarly, Germany is seeing consistent market expansion. Increasing usage of advanced digital technologies by implementing ICT security measures and procedures boosts the demand for network security components and services.

Asia Pacific is also expected to grow steadily during the forecast period. China is developing at a notable pace in the market and investing in the research & development of security software. The Chinese government is also pushing citizens to incorporate digitization into their daily lives. As a result, there would be an increased need for secure networks, which will drive market expansion. Furthermore, governments in numerous nations are enacting security laws and regulations to avoid data breaches.

Due to the rising investments in the Middle East & Africa, security solutions have begun to gain traction in these regions. Saudi Arabia has invested heavily to establish committees to deal with security risks, such as the Saudi Research and Innovation Network and SAFCSP. The Government of South America is creating a security infrastructure to counteract attacks and data breaches. Majority of organizations in the region are concentrating on implementing network and endpoint security policies.

List of Key Companies in Network Security Market

Major Market Players to Invest Heavily in Offering Suitable Security Solutions

Major market players are aiming to maintain and gain a competitive edge by constantly investing in security innovations and business acquisitions. Major players, such as WatchGuard Technologies, Inc., Check Point Software Technologies Ltd., Palo Alto Networks, Fortinet, Inc., and Juniper Networks, Inc. are entering partnerships or acquiring other players to offer an entire suite of security solutions. These companies are providing advanced endpoint security solutions and networks based on the needs and size of organizations.

• March 2023 – Fortinet announced its security awareness and training service to teachers across the U.K. free of charge so that they can combat cyberattacks against schools in their region. This is expanding an initiative that was started in the U.S. at the White House National Cyber Workforce and Education Summit in 2022. At that summit, Fortinet was a key participant in important discussions about solutions to the cybersecurity industry's significant talent shortage.


• January 2022 - Check Point Software Technologies Ltd. launched a secure access service edge solution for connecting remote and hybrid workforces. The enhanced secure access service will offer VPN-as-a-service, security enhancements, and PoPs that can readily adapt to business requirements to combine efficient network access and threat protection.

List of the Key Companies Profiled:

• Check Point Software Technologies Ltd. (Israel)


• Cisco Systems, Inc. (U.S.)


• Musarubra US LLC (U.S.)


• Fortinet, Inc. (U.S.)


• Juniper Networks, Inc. (U.S.)


• Kaspersky Lab. (Russia)


• Trend Micro (Japan)


• Palo Alto Networks, Inc. (U.S.)


• SonicWall.com (U.S.)


• WatchGuard Technologies, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 – IBM Corporation partnered with Palo Alto Networks to deliver better end-to-end security postures and navigate clients about evolving security threats. This partnership helps to protect critical data assets with cloud security and services.


• April 2023 – Trellix, a cyber-security firm that provides futuristic extended detection and response using XDR technology, announced the launch of its Security Endpoint Suite. The Suite and its advanced capabilities are said to give SOC analysts better visibility and control so they can make proactive security checks for all endpoints.


• March 2023 – Fortinet, a global leader of cybersecurity, announced that it provided its SD WAN to transform customer experience and optimize operational effectiveness for Emirates National Oil Company Limited (ENOC). ENOC is an entirely-owned subsidiary of the Government of Dubai. Through enhanced security controls provided by Fortinet’s SD WAN, ENOC was able to better safeguard its brand name and assets.                                                                               


• January 2022 – Symphony Technology Group (STG) launched Trellix, which delivers extended detection and response (XDR) solutions to businesses. The launch helped accelerate technology innovation through automation and machine learning.

REPORT COVERAGE

The report highlights leading regions across the world to offer a better understanding of the market to the user. Furthermore, the report provides insights into the latest industry growth trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further offers information on the drivers and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 12.3% from 2024 to 2032
Unit	Value (USD billion)
Segmentation	By Deployment Cloud   On-premises By Type Firewalls Antivirus and Antimalware Software VPN Wireless Security Others (Data Loss Prevention, Intrusion Prevention Systems, and Others) By Enterprise Type Small and Medium Enterprises (SMEs) Large Enterprises By Industry BFSI IT and Telecommunications Retail Healthcare Government Manufacturing Travel and Transportation Energy and Utilities Others (Education) By Region North America (By Deployment, Type, Enterprise Type, Industry, and Country) U.S. (By Industry) Canada (By Industry) Europe (By Deployment, Type, Enterprise Type, Industry, and Country) U.K. (By Industry) Germany (By Industry) France (By Industry) Italy (By Industry) Spain (By Industry) Rest of Europe Asia Pacific (By Deployment, Type, Enterprise Type, Industry, and Country) China (By Industry) Japan (By Industry) India (By Industry) South East Asia (By Industry) Rest of Asia Pacific Middle East & Africa (By Deployment, Type, Enterprise Type, Industry, and Country) GCC (By Industry) South Africa (By Industry) Rest of the Middle East & Africa South America (By Deployment, Type, Enterprise Type, Industry, Country) Brazil (By Industry) Mexico (By Industry) Rest of South America