Network Security Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud and On-Premise), By Type (Firewalls, Antivirus and anti-malware software, VPN, Wireless security, and others), By Enterprise Size (Small & Medium-Sized Enterprises and Large Enterprise), By Industry (BFSI, IT and Telecommunications, Retail, Healthcare, Government, Manufacturing, Travel and Transportation, and Others) and Region Forecast, 2022-2029

The global network security market size was valued at USD 20.30 billion in 2021 and is projected to grow from USD 22.60 billion in 2022 to USD 53.11 billion by 2029, exhibiting a CAGR of 13.0% during the forecast period. Based on our analysis, the global network security market trends had exhibited an average growth of 11.1% in 2020, as compared to 2019.  

The rising number of startups and increasing internet penetration across developing countries drive the demand for the software. Further, end-use organizations adopt bringing your own device (BYOD) service that requires secure network connections. Furthermore, industries such as healthcare and retail are dealing with network security concerns, as a result, these industries are implementing advanced security technologies that will increase security across these operating units.

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 defend small and medium-sized enterprises from advanced cyber threats. The quantum spark series offers services such as automated threat prevention, automatic set-up flexible network connectivity, protection for remote employees and cloud applications, and intuitive management of mobile applications. Also, key players are offering various security solutions for network infrastructure. For instance, Kaspersky launched operational technology (OT) network protection. Similarly, Corsa offers Service Providers (SPs) and Managed Security Service Providers (MSSPs).

COVID-19 IMPACT

Increasing Trend of Remote Working Practices to Boost Demand for Solutions

During the outbreak of the COVID-19 pandemic, the vast majority of employees were connected to secure office networks. Similarly, corporations have adopted network security solutions since organizations had an on-premise setup that was more secure than cloud or distant networks. Further, during the pandemic, various market players are focusing on expanding their global presence and market share by entering into strategic partnerships and collaboration. For instance, in May 2021, Cisco Systems, Inc. acquired Kenna Security, Inc. This acquisition helps the organization reduce the attack surface and the time it takes to respond effectively to threats.

However, the COVID-19 situation has compelled enterprises worldwide to prioritize e-learning and remote working platforms. According to Check Point Software Technologies Ltd., 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, increasing the quantity of data encryption traffic coming to the company network. As a result, the need for an advanced network solution is anticipated to grow. Further, these type of security solutions are projected to gain popularity in specific businesses even after the crisis.

LATEST TRENDS

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Rising Implementation of 5G to Boost Trend across Large Organizations

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 technology 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 just to 5G service providers but also to users. The increasing use of 5G services is likely to increase demand for security solutions.

5G is being applied 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 with 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.

DRIVING FACTORS

Increasing Cyber Threats at Network Point to boost Demand for the Solution

With the advancement in technologies worldwide, the adoption of digital solutions, connected devices, and IT systems is increasing. The digital infrastructure is 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.

Further, the level of protection against the attackers in the corporate sector was analyzed and found to be extremely low. Also, according to a report by Kaspersky Lab, more than 40% of the companies do not have 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. Further, the rise in cyber threats is anticipated to drive the demand for solutions and boost overall market growth.

Rising ‘Bring Your Device’ BYOD Policies in Organizations to Boost Demand

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

Further, the growing BYOD policy has prompted companies to offer network security solutions. In logistics, for example, the employer is linked to multiple vendors and exchanges data. This factor raises the possibility of data leaks, making network security market growth 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 the 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 also requires consistent examination, which is expected to hamper the adoption for a short period.

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

SEGMENTATION

By Deployment Analysis

Rising Adoption of Advanced Technologies Will Boost Demand for Solutions

The deployment type in the market is divided into on-premises and cloud.

The rising use of artificial intelligence, machine learning, the 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 up swiftly. As a result of these factors, the acceptance of cloud-based security deployment is increasing at a faster rate.

By Type Analysis

Firewall, VPN, and Wireless Security to Gain Traction Stoked by Increasing Adoption of Solutions

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 adopted across every industry, thus contributing to the highest revenue share. The firewall monitors the incoming and outgoing files to the IP address, authentic source, and ports & protocols. The firewall services and software act as barriers and prevent unauthorized access to the data.

With recent security improvements, the acceptance of intrusion prevention solutions is growing. The intrusion prevention solutions are witnessing stable adoption due to their capacity to block threats rather than just detecting them.

By Enterprise Size Analysis

Large Enterprises to Lead, Fueled by Adoption of Advanced Connected Devices

The enterprise size is categorized into small & medium enterprises and large enterprises.

Large enterprises are expected to witness a growing number of cyberattacks in the last few years. As a result, large enterprises reserve a larger portion of the budget for security. On the other hand, security awareness and increased cyber-attacks encourage small and medium-sized businesses, strengthening the market. Further, this leads to higher adoption of network security in large enterprises and helps drive the market's growth.

Further, small and medium-sized organizations are targeted by hackers to disrupt company growth. As a result, the organizations are experiencing significant financial losses, and 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 likely to increase gradually in the near future. It would further help in the market's growth.

By Industry Analysis

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BFSI and IT & Telecommunication Industries are Likely to Witness High Growth Owing to the Increase Data Breaches and Network Attacks

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

IT and telecommunications are predicted to gain the largest market share, followed by the government and the BFSI sector. The BFSI has a significant quantity of private data and personal information from its shareholders. Throughout the era, the sector has been subjected to the most severe threats and attacks. Furthermore, the growing popularity of mobile and online banking raises the potential for network attacks and data breaches. This factor will result in the implementation of security solutions. The government sector is expected to have a significant market share due to the huge amounts of confidential public and official data provided for online processes.

The healthcare, and consumer industries are expected to increase significantly in the anticipated period. Information security and privacy are becoming increasingly important in the healthcare business. To lower operating costs and improve healthcare services, key companies invest 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, heightening 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 business is creating and extending its e-commerce solutions. The majority of the industry's data is saved in the cloud. Customers can access e-commerce services on their mobile devices and laptops over the internet network. The sector has a high requirement for a private network due to this. During the projected period, the retail industry is predicted to increase rapidly.

REGIONAL INSIGHTS

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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 anticipated to witness a maximum portion of the network security market share. Further, U.S. has the highest growth rate of software adoption. Top industries such as healthcare, BFSI, and retail heavily utilize the software to protect their data. U.S. is modernizing current software while also creating security solutions, and it has submitted the most protection patents in the market. Canada is also anticipated to witness steady adoption of this type of security.

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 U.K. provide safe network solutions and cyber professional services and information risk assessment and management. Germany, on the other hand, is seeing consistent market expansion.

Similarly, Asia Pacific is expected to grow steadily during the forecast period.  China is developing in the market and investing in the research and 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 enact security laws and regulations to avoid data breaches.

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Due to the rising investments in the Middle East and Africa, security solutions have begun to gain traction. Saudi Arabia has invested in establishing committees to deal with security risks, such as the Saudi Research and Innovation Network, and SAFCSP. The government of Latin America is creating security infrastructure to counteract attacks and data breaches. The majority of organizations in the region concentrate on implementing network and endpoint security policies.

KEY INDUSTRY PLAYERS

Major Players in the Market Invest Heavily in Offering Suitable Security Solution

Major market players aim to maintain and gain a competitive differential advantage by constantly investing in security innovations and acquisitions. Major players such as WatchGuard Technologies, Inc., Check Point Software Technologies Ltd., FireEye, Inc., McAfee, LLC, and Juniper Networks, Inc., are entering into partnerships or acquiring other players to offer an entire suite of security solutions. Companies are providing advanced endpoint security solutions and networks based on the needs of organizations and the size of businesses.

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.

September 2020 – FireEye, Inc. signed a Carahsoft, Inc.’s DIR contract for teaming up with the Texas department of information resources (DIR). The agreement aimed to offer cyber-security solutions to the Texas public sector agencies.

October 2020 – Corsa announced the expansion of its turnkey system security platform in automating Firewall-as-a-Service (FWaaS). The Managed Security Service Providers (MSSPs) and Service Providers (SPs) will offer this new solution.

List of the Key Companies Profiled:

• Check Point Software Technologies Ltd. (Israel)


• Cisco Systems, Inc. (U.S.)


• FireEye, Inc. (U.S.)


• Fortinet, Inc. (U.S.)


• Juniper Networks, Inc. (U.S.)


• Kaspersky Lab. (Russia)


• McAfee, LLC (U.S.)


• Palo Alto Networks, Inc. (U.S.)


• SonicWall.com (U.S.)


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

KEY INDUSTRY DEVELOPMENTS:

• January 2022 - Symphony Technology Group (STG) launched Trellix which delivers extended detection and response (XDR) to businesses. Further, the launch would help accelerate technology innovation through automation and machine learning.


• January 2021 – Kaspersky has partnered with Waterfall Security Solutions to improve operational technology (OT) network protection and better secure industrial networks.

REPORT COVERAGE

An Infographic Representation of Network Security Market

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The global market 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.

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