Next-Generation Firewall (NGFW)

Global Next-Generation Firewall (NGFW) Market to Reach US$17.0 Billion by 2030

The global market for Next-Generation Firewall (NGFW) estimated at US$8.3 Billion in the year 2024, is expected to reach US$17.0 Billion by 2030, growing at a CAGR of 12.7% over the analysis period 2024-2030. Hardware, one of the segments analyzed in the report, is expected to record a 11.6% CAGR and reach US$7.8 Billion by the end of the analysis period. Growth in the Virtual segment is estimated at 8.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.3 Billion While China is Forecast to Grow at 12.1% CAGR

The Next-Generation Firewall (NGFW) market in the U.S. is estimated at US$2.3 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$2.6 Billion by the year 2030 trailing a CAGR of 12.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.8% and 10.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 9.2% CAGR.

Global Next-Generation Firewall (NGFW) Market - Key Trends & Drivers Summarized

What Are Next-Generation Firewalls (NGFWs) and Why Are They Critical for Cybersecurity?
Next-Generation Firewalls (NGFWs) are advanced security systems that combine traditional firewall technology with additional features like intrusion prevention, deep packet inspection, application control, and integrated threat intelligence. Unlike traditional firewalls that primarily control traffic based on IP addresses and port numbers, NGFWs provide more granular control by analyzing the content of network traffic, identifying applications, users, and potential threats in real-time. NGFWs are critical in protecting modern IT infrastructures from increasingly sophisticated cyber threats, such as ransomware, malware, phishing, and advanced persistent threats (APTs).

The importance of NGFWs lies in their ability to offer comprehensive security measures that address the evolving threat landscape. With the growing complexity of cyberattacks and the increasing adoption of cloud services, remote work, and IoT devices, traditional firewall solutions are no longer sufficient. NGFWs provide the necessary protection by offering multi-layered security, integrating features such as SSL inspection, sandboxing, and artificial intelligence (AI)-driven threat detection. This makes them essential for businesses looking to secure their networks in a time where data breaches and cyberattacks can lead to significant financial and reputational damage.

How Is the Next-Generation Firewall (NGFW) Market Advancing?
The NGFW market is advancing rapidly due to the increasing demand for enhanced security solutions in the face of rising cyber threats. One of the key trends shaping the market is the integration of AI and machine learning (ML) into NGFWs, which enables more sophisticated threat detection and response. AI-powered NGFWs can analyze large volumes of network data in real-time, identifying patterns and anomalies that may indicate potential threats. These firewalls are also becoming more autonomous, capable of adjusting their defenses based on the evolving threat landscape without requiring constant manual oversight.

Another important development in the market is the shift toward cloud-based NGFW solutions, which are becoming increasingly popular as businesses migrate their operations to the cloud. Cloud-based NGFWs provide scalable and flexible security, allowing organizations to protect their cloud environments and remote workforces more efficiently. In addition, NGFWs are being designed with a greater focus on network performance, ensuring that security measures do not negatively impact the speed or efficiency of network operations, which is critical for maintaining productivity in large enterprises.

Which Industries Are Leading the Adoption of NGFWs?
The adoption of NGFWs is being driven by several industries that are particularly vulnerable to cyberattacks. The financial services industry, which deals with sensitive customer data and financial transactions, is one of the leading adopters of NGFWs. Banks and financial institutions are heavily targeted by cybercriminals, making robust security solutions essential to prevent data breaches and protect against financial fraud. Similarly, the healthcare industry is increasingly adopting NGFWs to secure patient data and ensure compliance with strict regulations like HIPAA.

The retail sector, with its reliance on digital transactions and e-commerce, is another major adopter of NGFWs, as it faces significant risks from malware, ransomware, and payment card fraud. Government agencies, which handle critical infrastructure and sensitive information, are also investing heavily in NGFWs to protect national security and prevent cyber espionage. Additionally, educational institutions are embracing NGFWs to secure their networks as they become more reliant on digital learning platforms and cloud-based systems.

What Are the Key Growth Drivers in the NGFW Market?
The growth in the Next-Generation Firewall (NGFW) market is driven by several factors, starting with the increasing frequency and sophistication of cyberattacks. As cybercriminals develop more advanced methods of infiltrating networks, businesses and organizations require equally advanced security measures to defend against these threats. Another key driver is the growing adoption of cloud services and remote work, which has expanded the attack surface for organizations, making NGFWs essential for securing cloud environments and remote access points.

The rising importance of regulatory compliance is also contributing to the growth of the NGFW market. Industries such as healthcare, finance, and retail are subject to strict data protection regulations, and NGFWs help these organizations comply with requirements by providing comprehensive security and monitoring capabilities. Additionally, the integration of AI and machine learning into NGFWs is driving demand, as businesses look for more intelligent and autonomous security solutions that can adapt to emerging threats. Lastly, the shift toward digital transformation across industries is pushing companies to invest in next-generation security solutions to safeguard their digital assets.

SCOPE OF STUDY:

The report analyzes the Next-Generation Firewall (NGFW) market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Delivery Type (Hardware, Virtual, Cloud-Based); Organization Size (Large Enterprises, SMEs); End-Use (BFSI, Government & Public Utilities, Aerospace & Defense, Healthcare, Retail, Manufacturing, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 12 Featured) -

• Barracuda Networks, Inc.
• Check Point Software Technologies Ltd.
• Forcepoint LLC
• Fortinet, Inc.
• GajShield Infotech (India) Pvt. Ltd.
• Hillstone Networks
• Juniper Networks, Inc.
• Palo Alto Networks, Inc.
• SonicWall, Inc.
• Sophos Ltd.
• Zscaler, Inc.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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