Network Security Market Size - By Type (Firewall, Intrusion Detection & Prevention System, Network Access Control, Data Loss Prevention, Virtual Private Network), Deployment Model (On-premises, Cloud), Organization Size, End User & Global Forecast, 2023 - 2032

Network Security Market Size - By Type (Firewall, Intrusion Detection & Prevention System, Network Access Control, Data Loss Prevention, Virtual Private Network), Deployment Model (On-premises, Cloud), Organization Size, End User & Global Forecast, 2023 - 2032

Network Security Market Size

Network Security Market size was valued at USD 19.5 billion in 2022 and is estimated to register a CAGR of over 12% between 2023 and 2032. The surge in cyberattacks is propelling the market. With the rise in frequency and complexity of cyberthreats, organizations are concentrating on strengthening their defenses as a top priority. The escalating risk landscape has prompted investments in advanced security solutions, including firewalls, intrusion detection systems, and endpoint protection. This surge is driving the demand for innovative technologies and services to combat the evolving threats.

For instance, in September 2023, cybercriminals targeted the Kuwait Ministry of Finance with a phishing ransomware attack. This targeted assault aimed to infiltrate and encrypt sensitive data, leveraging phishing tactics to extort payment in exchange for restoring access to the encrypted information.
 

What are the growth opportunities in this market?

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The introduction of stringent data protection and privacy regulations compels businesses to prioritize network security. Compliance with these regulations demands heightened data protection measures, fueling the demand for comprehensive security solutions. The Indian government introduced the Digital Data Protection Act 2023 in August, which is a comprehensive legislation aimed at safeguarding personal and sensitive digital information. It establishes guidelines for data collection, processing, and storage, ensuring user privacy and imposing strict measures on the entities handling data. The act emphasizes transparency, user consent, and security protocols, holding organizations accountable for data protection and imposing penalties for non-compliance.

The complexity of security solutions presents challenges in the network security market. The diverse range of security tools, each with its interface and functionality, makes integration and management intricate. Compatibility issues between different solutions hinder seamless operation. The need for specialized expertise to configure and maintain these diverse systems adds to the challenge. Simplifying and streamlining these solutions while ensuring comprehensive security measures remains a significant challenge for organizations in the network security landscape.

COVID-19 Impact

The COVID-19 pandemic had a significant impact on the network security market as organizations have faced budget constraints and uncertainty. The pandemic affected the availability of security hardware and software, making it challenging for organizations to maintain and update their security infrastructure. The pandemic also surge cyberattacks, including ransomware and malware that propel demand for network security solution.

Network Security Market Trends

AI is an emerging trend in the network security industry, revolutionizing threat detection and response. Advanced AI algorithms analyze vast amounts of network data, swiftly identifying anomalies and potential threats that might elude traditional security measures. Machine learning models improve over time, enhancing their ability to predict and prevent cyber threats. AI-powered security solutions offer proactive defense, automated responses, and adaptation to evolving threats, thereby enhancing the overall resilience of network security infrastructures. For instance, in October 2023, Darktrace introduced an AI-powered cloud security tool, which can autonomously address 99% of prevalent breaches. This innovative technology aims to revolutionize cloud security strategies by leveraging self-learning AI, effectively detecting and mitigating threats.

Cloud computing is an emerging trend in the network security market, transforming how data is stored and accessed. This trend has prompted the development of specialized security solutions, such as Cloud Access Security Brokers (CASBs) and cloud-native security tools. These innovations focus on protecting data, applications, and infrastructure in cloud environments, catering to the increasing demand for robust and scalable cloud security solutions.

Network Security Market Analysis

Based on deployment model, the cloud segment accounted for 30% of the market share in 2022, due to the expanding adoption of cloud services across various industries. As businesses increasingly migrate their operations to the cloud, the demand for robust security measures within cloud environments is surging. This growth is fueled by the need for specialized cloud security solutions, including CASBs, cloud-native security tools, and secure access technologies. The emphasis on safeguarding data and applications in the cloud is propelling the expansion of the cloud security segment.

Based on organization size, the large enterprises segment held over 65% of the network security market share in 2022, owing to the accelerated digital transformation and expanding threat landscape. For instance, in October 2023, Amazon Web Services announced its plan to launch AWS European Sovereign Cloud. The new cloud platform is expected to drive the market by offering specialized security measures, such as enhanced data residency control, region-specific compliance, and dedicated security protocols, catering to the stringent needs of European enterprises and the public sector.

Large organizations, with complex networks and a higher susceptibility to cyber threats, are investing heavily in comprehensive security solutions. The segment growth is being driven by the need for sophisticated & scalable security measures, including advanced firewalls, intrusion detection systems, and threat intelligence platforms, to fortify networks against the evolving cyberthreats and potential vulnerabilities.

North America network security market share recorded more than 30% of revenue in 2022, attributed to the stringent data privacy regulations, increasing cyber threats, and a high adoption rate of advanced technologies. The region's robust cybersecurity infrastructure and a proactive approach by enterprises to safeguard against evolving threats are driving the demand for sophisticated security solutions. Investments in next-gen technologies, such as AI-driven security systems and cloud-based security services, contribute to the region's anticipated growth in the market.

Network Security Market Share

The major companies operating in the network security industry are-

• IBM Corporation
• Microsoft Corporation
• Cisco Systems, Inc.
• Broadcom Inc.
• VMware
• Palo Alto Networks, Inc.
• Fortinet, Inc.

IBM Corporation and Microsoft Corporation dominate the network security industry due to their comprehensive cybersecurity solutions and extensive industry experience. IBM's expertise in threat intelligence, managed security services, and innovative technologies, coupled with Microsoft's robust cloud security offerings, Azure Sentinel, and extensive security integrations, solidify their positions.

Network Security Industry News

• In May 2023, Kyndryl launched managed Secure Access Service Edge (SASE) solution powered by Fortinet that aims to help customers enable advanced network security initiatives. The solution combines Fortinet’s cloud-delivered security and secure networking solutions with Kyndryl’s network and security services to design, build, and manage networking for customers across industries.

The network security market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Type

• Firewall
• Intrusion Detection & Prevention System
• Network Access Control
• Data Loss Prevention
• Virtual Private Network
• Others

Market, By Deployment Model

• On-Premises
• Cloud

Market, By Organization Size

• Large Organization
• Smes

Market, By End User

• IT & telecom
• BFSI
• Healthcare
• Manufacturing
• Government
• Retail & e-commerce
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa

Frequently Asked Questions (FAQ)

How big is the network security market?

The market size of network security reached USD 19.5 billion in 2022 and is set to grow at 12% CAGR from 2023 to 2032, attributed to the rising frequency and complexity of cyberthreats.

Why is the demand for cloud-based network security rising?

Cloud-based network security segment accounted for more than 30% revenue share in 2022, owing to the expanding adoption of cloud services across various industries for safeguarding data and applications.

How big is the North America network security industry?

North America held over 30% of the market share in 2022, driven by the stringent data privacy regulations, increasing cyber threats, and the high adoption rate of advanced technologies in the region.

Who are the leading network security market participants?

Some of the key network security companies include IBM Corporation, Microsoft Corporation, Cisco Systems, Inc., Broadcom Inc., VMware, Palo Alto Networks, Inc., and Fortinet, Inc.