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The global network security market size was valued at USD 21.43 billion in 2022 and is projected to grow from USD 23.83 billion in 2023 to USD 54.37 billion by 2030, exhibiting a CAGR of 12.5% during the forecast period. North America dominated the global market with a share of 37.56% in 2022.
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.
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. The 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.
Increasing Trend of Remote Working Practices Boosted the Demand for Network Security Solutions
During the COVID-19 pandemic, a vast majority of employees were connected to secure office networks. Similarly, users had adopted network security solutions since organizations had an on-premises setup that was more secure than cloud or distant networks. Furthermore, during the pandemic, various market players focused on expanding their global presence and market share by entering into strategic partnerships and collaborations. For instance, in May 2021, Cisco Systems, Inc. acquired Kenna Security, Inc. This acquisition helped the organization reduce the attack surface and time taken to respond effectively to threats.
However, the COVID-19 situation had 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.
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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.
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.
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.
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.
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.
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 a dominant market share. 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.
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 segment is expected to hold a major 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.
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.
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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.
North America Network Security Market Size, 2022 (USD Billion)
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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.
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.
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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.
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.
An Infographic Representation of Network Security Market
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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.
CAGR of 12.5% from 2023 to 2030
Value (USD billion)
By Deployment, Type, Enterprise Type, Industry, and Region
By Enterprise Type
According to Fortune Business Insights, the global size market is projected to reach USD 54.37 billion by 2030.
In 2022, the market value stood at USD 21.43 billion.
The market is projected to register a CAGR of 12.5% during the forecast period.
Based on deployment, the cloud segment is expected to be the leading segment in the market.
The increasing adoption of Bring Your Own Device (BYOD) policy is expected to drive the market growth.
Musarubra US LLC, Juniper Networks, Inc., Kaspersky Lab., Cisco Systems, Inc., and Fortinet, Inc are the top players in the market.
North America is expected to hold the largest market share.
Asia Pacific is expected to record the highest CAGR during the forecast period.
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