Hardware Firewall Market Size (2024 - 2029)

Hardware Firewall Market Analysis

The Hardware Firewall Market size is estimated at USD 20.58 billion in 2024, and is expected to reach USD 34.92 billion by 2029, growing at a CAGR of 11.15% during the forecast period (2024-2029).

Cybersecurity threats increase the risk of cyberattacks, which can breach the systems of another organization or an individual. The attacker’s motives are to access information for financial gain. Such attacks raise concerns about infrastructure safety, increasing the demand for hardware firewalls.

• 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 market will most likely be driven by various factors, such as increased network security threats, the growth of cloud-based services, the expansion of IoT, and the demand for more sophisticated security solutions.
• The IT and telecom segment held a substantial market share by industry. 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.
• The demand for cloud-based firewall solutions is rising, especially in large organizations that deploy cloud platforms for network security. The financial sectors experience a need for cyber fraud prevention and security measures due to significant cyber threats. Additionally, advancements in performance, threat identification and mitigation capabilities, cloud integration, interaction with other security technologies, and automation are projected to drive the hardware firewall market.
• Increased cloud data breaches and the growth of NGFW (next-generation firewall) across devices are boosting the demand for firewalls as service solutions, which act as a market constraint. Since there is no hardware involved in this service, maintenance is quick. Unlike a hardware-powered firewall, a firewall as a service does not require complex configuration. A hardware firewall is more expensive than a software firewall since an initial investment depends on the degree of protection. As a result, this factor is expected to act as a growth catalyst for the firewalls-as-a-service industry.
• Post the COVID-19 pandemic, global enterprises have been facing an increasing number of attacks on their networks, leading to an increase in investments in safeguarding networks 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 like firewalls may become a key part of enterprise IT spending worldwide.

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, or an IoT node.

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, and Latin America). The market sizes and forecasts are provided in terms of value (USD) for all the segments.