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The global network security market size was USD 24.88 billion in 2020. The global impact of COVID-19 has been unique and staggering, with network security observing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a growth of 9.6% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 27.39 billion in 2021 to USD 60.38 billion in 2028 at a CAGR of 12.0% during the 2021-2028 period.
The global market is likely to grow steadily during the forecasted period. The rising demand for smartphones and increasing internet penetration in remote areas are boosting the demand for the software. In addition to this, industries are implementing bring your own devices (BYOD) policies, which will create a need for secured data transmission. Industries, such as healthcare and retail, are handling security challenges by implementing advanced technologies that will boost the adoption of network security software in the coming years.
Increasing trend of remote working Practices to Boost Demand for Solutions
Preceding the COVID-19 global pandemic, the majority of employees were working from secured office networks. Similarly, enterprises were more inclined toward cybersecurity or managed security services than network security as offices had an on-premise set-up that was better secure than cloud or remote networks. However, the COVID-19 crisis has forced organizations globally to emphasize remote working or e-learning. According to Check Point Software Technologies Ltd., 81% of enterprises have adopted remote working for their workforces, whereas 74% of organizations plan to facilitate the same permanently during the pandemic time. With the rising trend of remote working, enterprise networks are experiencing a sudden surge in access requests. This has produced higher traffic volumes, which has enlarged the amount of encrypted data traffic arriving at the enterprise network. Consequently, the demand for a suitable solution is likely to escalate as the rising adoption of remote-working practices can give a boost to botnet and ransomware threats. Thus, network security solutions are expected to gain more demand from certain industries even after the crisis.
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Rising Implementation of 5G to Boost the Market
The implementation of 5G technology is growing at a fast pace. 5G provides improved network services that help the devices to operate at a high speed along with better reliability, proper bandwidth utilization, and reduced latency. This has led to high adoption of 5G in technologies, such as Artificial Intelligence (AI), Machine Learning (ML), industrial IoT, and others. As the integration of technologies with 5G is increasing, more data will be shared via the network, creating more threats to the security of data. The risk of security and cyber-attacks is not just associated with 5G service providers but also with the users. The confidential information of all the industries will be present in every layer of wireless systems. The rising adoption of 5G services is expected to boost the demand for network security systems.
Along with IoT, 5G is being implemented for better data transmission in technologies, such as autonomous vehicles, augmented reality virtual reality, smart city, robotic process automation, and others. These technologies constantly share data via the internet with real-time analysis, which requires high speed and bandwidth connection. 5G is expected to provide the required speed to the user. To prevent data breach and cyber-attacks, the implementation of a secured network is essential for security.
Thus, the growing trend of implementing 5G services is likely to enhance the growth of this market during the forecast period.
Increasing Cyber Threats at the Network Point is Expected to Boost the Network Security Market Growth
Globally, a rising connected digital world requires continuous data security and services from any location. For this, companies are launching multiple hosting environments where all mobile and fixed devices are connected to the server. This is expected to increase the risk of data security. Subsequently, hackers are constantly attacking networks to breach and steal confidential information and company databases. The network has become a prominent channel for disrupting the organization's data.
For instance, one of the major attacks on the network is the DDoS attack, where the attackers flood the network with fake traffic and steal data. In various organizations, this type of security is implemented to protect data from external environmental threats. Several attacks are penetrated internally, where the hacker can have authorized access to the organizations' network. This makes it essential to monitor the network and host at every connection level. A better and protected network reduces the risk of data theft and cyber-attacks. Network security tools, such as firewalls and data loss prevention software, detect the threats at the initial stage. This is encouraging industries to implement these tools and software to protect data from raising attempts of attacks.
The other challenge for users is viruses and malware that enter directly through the network. These viruses and malware disrupt files and documents only after the user triggers a specific action. With the help of antivirus and anti-malware, a network architect or an IT specialist can provide security to the network. The rise in threats is boosting the overall market growth as there will be more requirements for solutions.
Rising ‘Bring Your Device’ BYOD Policies in Organizations to Boost Demand
Organizations these days are encouraging employees to bring their own devices to the workplace, helping in reducing investments in systems. The other reason for the BYOD policy is to let the employees work from any location. The devices are connected to the organization's network from any location and can access the information. Although BYOD offers several advantages, there is a data privacy risk associated with it. The hacker can get into organizations' networks through any BYOD channel. This has become essential for the organization to protect the networks and confidential information from being hacked.
The rising BYOD policy has encouraged the vendors to provide BYOD security solutions. For instance, in supply chain management, the employer is connected to various vendors and shares data. This increases the risk of data breaching and thus, it is essential to implement network type of security. The increasing implementation of the BYOD policies in organizations is likely to drive the overall market during the forecast period.
Low-Security Budget by the Companies Likely to Hamper the Adoption of Network Security Solutions
Today, almost every industry is facing challenges in dealing with threats and a lack of authentic data security. Still, the companies are not keeping the required budget for security solutions. Also, the initial installation cost of software is high and it also requires regular examination, which is likely to hamper the adoption for a short period.
However, despite the high cost of the solutions and increasing attacks, small and medium enterprises can deploy customized affordable security solutions as per the need and operations of the organization.
Rising Adoption of Technologies to Boost the Demand for Cloud Technology
The deployment segment in the market is divided into on-premises and cloud.
The increasing application of technologies, such as artificial intelligence (AI), machine language, IoT, and others is forcing the industries to adopt cloud-based solutions. The cloud-based software helps organizations to scale up quickly with the help of real-time configuration. Due to these reasons, the adoption of cloud security deployment is witnessing a higher growth rate.
Firewall, VPN, and Wireless Security to Gain Traction
Based on type, the segment is categorized into firewalls, antivirus and antimalware software, VPN, wireless security, and others (Data loss prevention, Intrusion prevention systems, etc.)
The adoption of firewall security is mostly adopted in every industry, thereby contributing to maximum revenue share. The firewall controls and monitors the incoming and outgoing files to the authentic source, IP address, and ports & protocols. The firewall software and services act as a barrier and prevent unauthorized access to the data.
With recent advancements in-network, the adoption of intrusion prevention systems is increasing. The intrusion prevention systems are witnessing steady adoption owing to their ability to block threats rather than just detecting it.
These advanced security features provided by each type of software is likely to boost the demand for a solution in the near future
Large Enterprises to have Maximum Market Revenue Share
The enterprise size segment is categorized into small & medium enterprises and large enterprises.
Large enterprises have witnessed an increasing number of attacks in the last few years. Owing to this, they are keeping more share of the budget to deal with data security. On the other hand, rising awareness about security and increasing cyber-attacks is encouraging small and medium enterprises, thereby boosting the market. In several cases, hackers attack small and medium enterprises just to interrupt business growth, through this, the businesses suffer great losses financially and private data is exploited, thus SMEs too require secured networks. Also, with the help of government initiatives and funds, startups are investing in securing networks. The adoption of this security software by small and medium enterprises is expected to grow steadily shortly.
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BFSI and IT & Telecommunication Industries are Likely to Witness High Adoption
The industry segment is categorized into BFSI, IT and telecommunications, retail, healthcare, government, manufacturing, travel and transportation, energy and utilities, and others (education, etc.).
The IT & telecom sector is expected to gain the highest network security market share followed by the government, and BFSI segment. The BFSI contains a high amount of confidential data and personal information from its shareholders. The industry has witnessed the highest threats and attacks over the period. Also, the increasing demand for mobile banking and internet banking is raising the risk of network threats and data breaches. This will lead to the adoption of security solutions. The government segment is likely to have a noteworthy market share owing to its large sets of confidential data shared including public and official are shared for online process.
The healthcare and retail industries are expected to witness significant growth in the forecasted period. The issue of security and privacy of information is growing in the healthcare industry. Key organizations in the industry are investing in new technologies, such as cloud computing, artificial intelligence, natural language processing, and IoT, to reduce operational costs and enhance healthcare services. Also, there is a rise in the adoption of Electronic Health Records (EHR), to store sensitive information of patients in the hospitals. With the high adoption of medical insurance and claims, huge data is shared between patients, providers, and payers, increasing the need for information security of the network. The network attacks can be varied by type of system and the location of the network. With the adoption of new technologies, such as EHR, AI, and others, to increase the efficiency of the process, the healthcare industry is facing new threats. Protecting the private data of patients at every point of access has become essential for the industry to adopt essential security solutions. Thus, the industry is showcasing high adoption of the software to protect data at every network node.
Similarly, the retail industry is developing and expanding its e-retail solutions. The data of the industry is majorly stored in the cloud. The customers are also connected to the e-retail services on mobile and computers through the internet network. This has generated a huge demand for a secure network by the industry. The retail industry is expected to grow with a high CAGR during the forecast period.
North America Network Security Market Size, 2020 (USD Billion)
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By region, the market has been segmented into five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
North America is expected to have a maximum share of the market. The adoption of software is highest in the U.S. Top industries, such as BFSI, healthcare, and retail, are highly implementing the software to maintain its data privacy. The U.S. is upgrading the existing software along with innovating new security techniques and has filed the maximum number of cybersecurity patents in the market. Canada is also witnessing steady adoption of the software.
Europe is also growing steadily in the security software market. With its Cybersecurity Strategy of 2013, the European Commission has increased its efforts to protect data online. The region has invested around USD 707.55 million for research and innovation particularly for network and information security during 2014-2020. The U.K. is the leading country in this market. Most firms in the U.K. offer solutions for secure networks along with cyber professionals’ services and information risk assessment & management. While Germany is also witnessing steady growth in the market. After the U.S., Germany, and France have filed the maximum number of patents in the global market.
Similarly, Asia Pacific is likely to witness a healthy year-on-year growth during the forecast period. China is progressing in the market and investing in the research and development of security software. The government is also encouraging the public to adopt digitalization in their daily lives. With this, there will be a surging requirement for secure networks, which will boost the industry growth in India. In addition to this, governments across various countries are implementing security laws and policies for preventing data breaches.
Investments in the Middle East and Africa have now started to gain momentum owing to the increase in cyber-attacks. Saudi Arabia has been investing and establishing committees to deal with the security threats, such as Saudi Research and Innovation Network, SAFCSP (The Saudi Federation for Cyber Security and Programming). In Latin America, the government is providing security infrastructure to combat the threats and data breaches. Most companies in the region are focusing on executing security of network and endpoint security strategies.
Major players in the market are highly investing in acquisition and partnership to offer suitable security solution
Key market players aim to gain and maintain a competitive differential advantage by constantly investing in security innovations and acquisitions. Major players in the market, such as Check Point Software Technologies Ltd., WatchGuard Technologies, Inc., FireEye, Inc., Juniper Networks, Inc., and McAfee, LLC, are entering into partnerships or acquiring other security businesses to offer an entire suite of security solutions. Numerous key players are offering advanced network and endpoint security solutions as per the requirement of the organizations and the size of enterprises. Market players, such as Cisco Systems and McAfee, Kaspersky Lab, are offering cloud network security solutions.
October 2019 – Cisco Systems Inc. acquired Duo Security Inc., an intent-based networking strategy based in Michigan. The acquisition will help the company to provide a software-based and subscription-based security portfolio. By integrating Duo’s competitive edge of security with Cisco’s solution, will boost the company’s position in the global market.
November 2019 – Cisco Systems Inc. acquired Singularity Networks, a network analytics provider for enhancing its network analysis based in Denver. The company offers real-time traffic analysis for cloud and premises-based. This will boost Cisco’s network automation portfolio along it will offer real-time identifications of threats.
An Infographic Representation of Network Security Market
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The market research report highlights leading regions across the world to offer a better understanding 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 some drivers and restraints helping the reader gain in-depth knowledge about the market.
Value (USD Billion)
Deployment; Type; Enterprise Size; Industry and Region
By Enterprise Size
(By Deployment; Type; Enterprise Size; Industry and Region)
According to Fortune Business Insights, the global market size is projected to reach USD 60.38 billion by 2028.
In 2020, the market value stood at USD 24.88 billion.
The market is projected to grow at a CAGR of 12.0% during the forecast period.
Based on deployment, the on premise segment is expected to be the leading segment in the market.
The increasing adoption of smartphones along with organizations bring your own device (BYOD) policy is expected to primarily drive the market growth.
FireEye, Inc., Juniper Networks, Inc., Kaspersky Lab., Cisco Systems, Inc., McAfee, LLC, are the top players in the market.
North America region is expected to hold the highest market share.
Asia Pacific is expected to grow at the highest CAGR during the forecast period
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