Hardware Firewall Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 11.25 % |
| Fastest Growing Market | Latin America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Hardware Firewall Market Analysis
The hardware firewall market was valued at USD 16.94 billion in the previous year, and it is anticipated to reach USD 31.74 billion over the forecast period, registering a CAGR of 11.25%. Cyber-attackers view the epidemic as a chance to ramp up their criminal operations by taking advantage of individuals working from the susceptibility of home and relying on people's intense interest in COVID-19-related news (e.g., malicious fake COVID-19-related websites). As a result of the rising frequency and sophistication of cyber attacks, cybersecurity has gained more attention. Such attacks certainly raise concerns about the safety of infrastructure, giving rise to the hardware firewall demand.
- Hardware firewalls are anticipated to remain an important component of enterprises' and organizations' cybersecurity strategies as they adopt newer technologies and extend their digital presence.
- The future growth of the hardware firewall will most likely be driven by a variety of factors, such as increased network security threats, the growth of cloud-based services, the expansion of the Internet of Things (IoT), and the demand for more sophisticated security solutions.
- Based on industry, the IT and Telecom segment held a substantial market share of 27.64% in 2022. Due to the increasing reliance on digital communication and data transmission, the future of IT and Telecom employing hardware firewalls is expected to witness technological advancements and a greater emphasis on security.
- Additionally, advancements in performance, threat identification and mitigation capabilities, cloud integration, interaction with other security technologies, and automation are predicted in the hardware firewall market.
- Increased cloud data breaches and the growth of NGFW (next-generation firewall) across devices are increasing demand for the firewall as service solutions and services which act as a market constraint. Since there is no hardware involved in this service, maintenance is quick. Also, unlike a hardware-powered firewall, a firewall as a service does not require complex configuration. Moreover, a hardware firewall is more expensive than a software firewall since an initial investment is necessarily dependent on the degree of protection. As a result, the factor acts as a growth catalyst for the firewalls as a service industry.
- Post-COVID-19 pandemic, global enterprises face an increasing number of attacks on their networks, owing to which investments in safeguarding the network have increased worldwide. A significant share of the IT hardware investment in the network is expected to be focused on enhancing security. Over the forecast period, network security equipment such as firewalls is expected to be a key part of enterprise IT spending across the world.
Hardware Firewall Market Trends
Healthcare Industry to be the Fastest Growing End User
- Over the past few years, the healthcare sector has become a target of significant interest among cyber criminals. Due to its generation of valuable data, healthcare has recently become vulnerable to cyber-attacks. As per a HIPAA Journal report, healthcare institutions had 56 data breaches of 500 or more records in 2021. Moreover, the report also stated that the number of records exposed or impermissibly disclosed increased by approximately 24.5%, and data breaches left 2.95 million records exposed or impermissibly disclosed as of December 2021.
- With the outbreak of the COVID-19 pandemic, hackers vastly evolved their tactics to exploit the fears escalating amongst the population. This has spurred the need to adopt cybersecurity practices to keep pace with changing threats, especially in healthcare.
- In December 2022, Palo Alto Networks announced the launch of its new Medical IoT Security offering, an add-on to its core firewall products designed to provide improved visibility, automated monitoring, and more for hitherto vulnerable healthcare IoT frameworks.
Healthcare firewalls must be more comprehensive than firewalls in other sectors because of the value of EHRs and clinical data and the numerous ways hackers can gain unauthorized access to the network. Healthcare organizations use more than just computers and smartphones to access the network. Connected medical devices are Wi-Fi enabled and use the network to accumulate patient data and monitor health. - Following a public call asking governments worldwide to join forces with the private sector and academia to make sure that medical facilities are protected from cyber threats. Various collaborations have been taking place in the industry. For instance, in March 2022, the United States Parliament Senators introduced the Healthcare Cybersecurity Act. The Act aims to promote collaboration between Cybersecurity and Infrastructure Security Agency (CISA) and HHS to enhance cybersecurity efforts across the healthcare and public health sector. As per Identity Theft Resource Center, although the number of data compromises in the healthcare sector has reduced since 2019, it has witnessed a rise during the last two years.
- As part of their ongoing efforts to help healthcare organizations prevent cyberattacks, the FBI and Cybersecurity and Infrastructure Security Agency released a new cybersecurity advisory (CSA) warning health IT leaders about a recent ransomware threat called Zeppelin. From 2019 through at least June 2022, malicious actors have used Zeppelin malware to target a variety of businesses and critical infrastructure organizations, especially healthcare organizations.
- According to the CSA, cyberattackers access healthcare organizations' networks via RDP exploitation, exploiting SonicWall firewall vulnerabilities and phishing campaigns. Electronic Health Records (EHRs), online patient portals, and other digital systems used in the healthcare industry need security measures to prevent unauthorized access to data breaches, thus boosting the demand for hardware firewalls.
North America is Expected to Hold Major Market Share
- North America is one of the most technologically developed regions. The rising technology adoption will result in important changes in the coming years. Some key technological advancements that have the prime potential to alter civilization include robotics, sensor technology, big data, and artificial intelligence, resulting in a vast amount of data generation that further needs enhanced data security.
- Moreover, cybersecurity has become an increasingly important area of focus in the United States in recent years due to the surge in the total count of cyber threats and attacks that organizations and individuals face. As per Identity Theft Resource Center, in 2022, the total number of data compromises in the United States stood at around 1802 cases. Meanwhile, over 422 million individuals were greatly affected in 2022 by data compromises, including leakage, data breaches, and exposure.
- The market is witnessing mergers, acquisitions, and investments by key players as part of its strategy to improve business and their presence to reach customers and meet their requirements for various applications. Moreover, significant initiatives have been taken by the government, especially to secure the country against cyberattacks.
- For instance, in March 2023, The White House released its National Cybersecurity Strategy especially to establish an affirmative vision for a more secure cyberspace that creates opportunities to achieve collective aspirations. The National Cybersecurity Strategy calls for two key fundamental shifts: realigning incentives to favor long-term investments and rebalancing the responsibility to defend cyberspace.
- Thus, a rise in such market activities involving mergers, acquisitions, investments, and government initiatives related to cybersecurity is anticipated to drive the demand for network security solutions within the region throughout the forecast period.
Hardware Firewall Industry Overview
The Hardware Firewall Market is fragmented with the presence of major players like Bitdefender, Cisco Systems, Inc., Cujo LLC, Fortinet Inc., and Palo Alto Networks Inc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- February 2023 - Sophos introduced 5G support for desktop firewalls of XGS models, and the company started offering a 5G cellular module for all XGS 116, 126, and 136 models (including w-models), which have a modular expansion bay to add additional connectivity. The new module enables 5G cellular network connections using the 5G Sub-6 bands, with download speeds of up to 4.5 Gbps and upload speeds of up to 660 Mbps (this may vary by carrier and region). The module also provides an automatic fallback to 3G and 4G LTE (Cat-20) networks.
- September 2022 - Bitdefender announced it had entered a multi-year partnership with Ferrari S.p.A. to become a Cybersecurity global partner of Scuderia Ferrari, competing in the FIA Formula 1 World Championship.
Hardware Firewall Market Leaders
Bitdefender
Cisco Systems, Inc.
Cujo LLC
Fortinet Inc.
Palo Alto Networks Inc.
*Disclaimer: Major Players sorted in no particular order
Hardware Firewall Market News
- February 2023 - WatchGuard Technologies, a worldwide pioneer in unified cybersecurity, introduced the Firebox T45/T45-POE/T45-W-POE, T25/T25-W, and T85-POE tabletop firewall devices. These latest firewalls are designed to provide the performance that distributed and remote business environments require for better security against emerging network security threats and are driven by WatchGuard's Unified Security Platform architecture to give comprehensive security and streamlined management via WatchGuard Cloud.
- February 2023 - Fortinet announced the launch of its custom ASIC to power its next generation of entry and mid-range FortiGate firewalls. The new chip offers enhanced firewall performance and faster encryption for zero-trust and secure access service edge (SASE) use cases while enabling it to build better systems for the network edge.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Coverage of the Major Regional Vendors and Production Locations in the Firewall Market
4.3 Coverage of Supply-side Dynamics
4.4 Case Studies of Telcos
4.5 Coverage of Native Vs Virtual Firewalls
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Buyers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Industry Value Chain Analysis
4.8 Coverage of Firewall Demand in the Post-Pandemic Scenario
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Administrative Regulations Encouraging Network Security Application Firewall
5.1.2 Rising Sophistication of Attacks on Critical Infrastructure
5.2 Market Restraints
5.2.1 Heavy Capital Expenditure and Rising Adoption of Firewall as a Service
5.3 Hardware Firewall Price Trend Analysis
5.4 Hardware Firewall - Technology Roadmap
5.5 Analysis of Types of Firewalls
5.5.1 Packet Filtering Firewalls
5.5.2 Circuit-level Gateways
5.5.3 Application-level Gateways
5.5.4 UTM Firewalls
6. MARKET SEGMENTATION
6.1 By Component
6.1.1 Device/System
6.1.2 Services (Installation Services)
6.2 By Organization Size
6.2.1 SME's
6.2.2 Large Enterprises
6.3 By End-user Industry
6.3.1 Healthcare
6.3.2 Manufacturing
6.3.3 Government
6.3.4 IT and Telecom
6.3.5 Education
6.3.6 Other End-user Industries
6.4 By Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia Pacific
6.4.3.1 China
6.4.3.2 Japan
6.4.3.3 India
6.4.3.4 Malaysia
6.4.3.5 Thailand
6.4.3.6 Vietnam
6.4.3.7 Singapore
6.4.3.8 Philippines
6.4.3.9 Indonesia
6.4.3.10 Rest of Asia Pacific
6.4.4 Middle East and Africa
6.4.5 Latin America
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Bitdefender
7.1.2 Cisco Systems, Inc.
7.1.3 CUJO LLC
7.1.4 Fortinet Inc.
7.1.5 Palo Alto Networks Inc.
7.1.6 Netgate
7.1.7 Sonicwall Inc.
7.1.8 Sophos Ltd
7.1.9 WatchGuard Technologies Inc.
7.1.10 Check Point Software Technologies Ltd
- *List Not Exhaustive
8. VENDOR MARKET SHARE ANALYSIS
9. INVESTMENT ANALYSIS
Hardware Firewall Industry Segmentation
A firewall hardware, also known as a physical firewall device, is an appliance that fits between the client system and the uplink and filters traffic according to user profiles, security policies, and business rules that have been pre-configured. The uplink transmits traffic from private or public networks to the client system, which can be a server, a WFH system, an employee workstation, and an IoT node, among others.
The Hardware Firewall Market is segmented by Component (Device/System and Services (Installation Services)), Organization Size (SMEs and Large Enterprises), End-user Industry (Healthcare, Manufacturing, Government, IT and Telecom, and Education), and Geography (North America, Europe, Asia-Pacific (China, Japan, India, Malaysia, Thailand, Vietnam, Singapore, Philippines, Indonesia, Rest of Asia-Pacific), Middle East and Africa, Latin America). The market sizes and forecasts are provided in terms of value in USD billion for all the segments.
| By Component | |
| Device/System | |
| Services (Installation Services) |
| By Organization Size | |
| SME's | |
| Large Enterprises |
| By End-user Industry | |
| Healthcare | |
| Manufacturing | |
| Government | |
| IT and Telecom | |
| Education | |
| Other End-user Industries |
| By Geography | ||||||||||||
| North America | ||||||||||||
| Europe | ||||||||||||
| ||||||||||||
| Middle East and Africa | ||||||||||||
| Latin America |
Frequently Asked Questions
What is the current Hardware Firewall Market size?
The Hardware Firewall Market is projected to register a CAGR of 11.25% during the forecast period (2024-2029)
Who are the key players in Hardware Firewall Market?
Bitdefender , Cisco Systems, Inc. , Cujo LLC , Fortinet Inc. and Palo Alto Networks Inc. are the major companies operating in the Hardware Firewall Market.
Which is the fastest growing region in Hardware Firewall Market?
Latin America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Hardware Firewall Market?
In 2024, the North America accounts for the largest market share in Hardware Firewall Market.
What years does this Hardware Firewall Market cover?
The report covers the Hardware Firewall Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Hardware Firewall Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Hardware Firewall Industry Report
Statistics for the 2024 Hardware Firewall market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hardware Firewall analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
