GLOBAL NEXT GENERATION FIREWALL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Global Next Generation Firewall Market is estimated to be valued at USD 5,399.1 Mn in 2025 and is expected to reach USD 9,743.7 Mn in 2032, exhibiting a compound annual growth rate (CAGR) of 8.8% from 2025 to 2032.

Key Takeaways:

• By Deployment, the on-premises segment is anticipated to dominate the next generation firewall market, accounting for 60.0% of the global share in 2025.
• By Regional, Europe is projected to contribute 40.0% of the global next generation firewall market share in 2025.

Market Overview:

The global next generation firewall (NGFW) market is expanding steadily, driven by rising cyber threats and increasing demand for advanced network security solutions. On-premises deployment is set to lead with 60% share in 2025 due to high data control needs. Enterprises across the BFSI and government sectors are key adopters. Europe will dominate regionally with a 40% share, supported by strict data protection laws and growing digital transformation. NGFWs’ ability to offer deep packet inspection and real-time threat prevention fuels market growth.

Current Events and its Impact on the Next Generation Firewall Market

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Pricing Analysis: Next Generation Firewall Market

The pricing structure of the global next generation firewall (NGFW) market in 2025 is shaped by various factors, including deployment type (on-premises or cloud-based), feature set (intrusion prevention, SSL inspection, application control), scalability, throughput capacity, and integration with broader cyber security ecosystems. Pricing is moderately competitive across SMB and enterprise segments, with on-premises deployments typically commanding higher prices due to customizability, hardware needs, and maintenance requirements.

Premium pricing is observed for advanced NGFW solutions that offer AI-driven threat detection, real-time analytics, deep packet inspection, and centralized management across hybrid cloud environments. These high-end systems are favoured by large enterprises, government agencies, and critical infrastructure operators where performance, compliance, and advanced threat mitigation are non-negotiable. Customers in these segments are willing to invest in high-throughput appliances and subscriptions to ensure robust security and low-latency protection.

Regional price differences persist, with Europe and North America recording higher average pricing due to stringent compliance mandates such as GDPR and NIS2, and increased demand for tailored cyber security solutions. In contrast, Asia Pacific, especially countries like India and China, benefits from a mix of locally produced hardware and open-source integrations, enabling vendors to offer competitive pricing for emerging markets and cost-sensitive sectors. This regional variation supports diverse adoption models, from high-end enterprise-grade NGFWs to entry-level virtual firewalls for SMEs.

Role of Emerging Technologies in the Next Generation Firewall Market

Emerging technologies are significantly transforming the Next Generation Firewall (NGFW) market by elevating threat detection capabilities, improving scalability, and enabling real-time intelligent network protection. Technologies such as artificial intelligence (AI), machine learning (ML), cloud computing, zero trust architecture, and Secure Access Service Edge (SASE) are driving the evolution of NGFW solutions.

AI and ML are being embedded into NGFW platforms to enable advanced threat prediction, automated policy enforcement, and real-time anomaly detection. These intelligent systems can quickly identify patterns in network traffic, detect previously unknown threats, and dynamically adjust firewall rules. This is especially crucial in protecting against polymorphic malware, zero-day exploits, and sophisticated phishing attacks.

Cloud-native architectures and SASE frameworks are reshaping how firewalls are deployed and managed. NGFWs are increasingly integrated with cloud security platforms to provide secure access across hybrid workforces and distributed environments. These integrations support seamless identity verification, data protection, and secure connectivity in remote and multi-cloud setups.

Zero Trust Network Access (ZTNA) models are being implemented alongside NGFWs to enforce least-privilege access policies, verify device health, and continuously monitor user behaviour. This shift toward context-aware and user-centric security makes NGFWs central to enterprise cyber defence strategies.

Furthermore, automation and orchestration tools are streamlining firewall management across complex environments, reducing human error, and enhancing policy consistency across physical, virtual, and containerized networks.

Collectively, these emerging technologies are not only enhancing the operational efficiency of NGFWs but also future-proofing organizations against rapidly evolving cyber threats in a hyper connected digital landscape.

Next Generation Firewall Market Trends

• Increasing Instances of Cyber Attacks and Data Breaches

Rising cases of cyberattacks and data breaches across enterprises are major factor driving growth of the global next generation firewall market. High profile data breaches resulting in loss of sensitive consumer and enterprise data have highlighted the vulnerabilities in existing network security firewall infrastructures. NGFWs provide advanced threat protection capabilities such as intrusion prevention, malware analysis, application control, and other to mitigate risks of attacks.

Their integrated security functionalities offer superior protection as compared to traditional firewalls. Many governments worldwide have also imposed regulations around data security and privacy which is compelling businesses to adopt NGFWs. The annual report from the FBI's Internet Crime Complaint Center, the 2020 Internet Crime Report, had been published. It incorporates data from 791,790 complaints related to suspected internet crimes, marking a significant rise of over 300,000 complaints compared to 2019. These complaints also reported total losses surpassing US$ 4.2 billion.

In June 2025

, The Times of India reported that Check Point Software Technologies has launched an India-based instance of its Harmony SASE (Secure Access Service Edge) platform to enhance network security and ensure compliance with domestic data-residency regulations. Positioned as a next-generation approach to firewalls, this initiative provides enterprises with cloud-delivered, scalable NGFW functionality tailored to local needs.

• Growth in BYOD and IoT

Growing Bring Your Own Device (BYOD) trend across enterprises is contributing to increased adoption of next generation firewalls. NGFWs help organizations to securely enable BYOD policies by providing granular visibility and control over network traffic. Their capabilities like user identity-based access control, device profiling, and malware analysis help to address security risks associated with BYOD.

The exponential growth in IoT connected devices is also creating new network security challenges which NGFWs are equipped to handle through their advanced threat detection capabilities. . This plan involves a significant investment of EUR 1 billion (equivalent to USD 1.2 billion) to bolster cybersecurity across the country, earmarking approximately EUR 350 million (around USD 400 million) specifically for fortifying the cybersecurity measures in hospitals.

In March 2025

, The Economic Times – CIO highlighted that Indian enterprises are shifting from traditional firewalls to hybrid mesh firewalls, driven by a growing threat landscape that demands unified perimeter security. Experts cited a Forrester study showing NGFWs deliver approximately 318% ROI over three years and reduce manual update requirements by 90%, making them vital in multi-cloud and hybrid environments.

Opportunities in the Next Generation Firewall Market

  Adoption by Small and Medium Businesses

Widespread adoption of NGFWs in large enterprises is creating significant opportunities for next generation firewall vendors to target small and medium businesses (SMBs). SMBs largely rely on basic firewalls, and have limited security staff and budgets.

Scaled-down, economical NGFW solutions tailored for SMBs would allow vendors to expand their target market. Simplified cloud-based or virtual NGFW deployments requiring minimal maintenance are likely to witness increasing demand among SMBs.

According to the report published by Cisco, it is estimated that by 2020, approximately 78% of small businesses would have fully embraced cloud computing, signifying their adoption of at least one cloud service in their business processes.

• Integration of Advanced Capabilities

Integrating advanced capabilities like artificial intelligence, threat intelligence feeds, deception technology, sandboxing, SIEM, and more into NGFWs provides vendors potential opportunities to differentiate their offerings. As cyber threats become more sophisticated, customers will look for NGFWs that leverage automation, machine learning and other emerging technologies to provide superior detection and response.

Vendors that continuously invest in integrating complementary security capabilities within their NGFW portfolio can gain competitive advantage. For instance, in July 2021, Fortinet, a leading provider of comprehensive and automated cybersecurity solutions, unveiled the FortiGate 3500F next-generation firewall (NGFW). This advanced firewall is designed to safeguard enterprises with hybrid data centers from the continuously evolving threat landscape, including the rising menace of ransomware attacks.

The FortiGate 3500F stands out with top-tier performance metrics in the industry, featuring support for TLS1.3 and automated threat protection post-encryption. Employing a security-driven networking approach, it also incorporates zero-trust network access (ZTNA) capabilities, ensuring consistent security and a seamless user experience for individuals accessing the network from any location.

Segmental Insights

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Next Generation Firewall Market Insights, By Deployment

The on-premises segment is anticipated to dominate the next generation firewall market, accounting for 60.0% of the global share in 2025. This dominance is primarily driven by the continued reliance of large enterprises and government agencies on dedicated in-house infrastructure to maintain complete control over data security and compliance.

 On-premises NGFW solutions offer superior customization, reduced latency, and localized threat detection, making them a preferred choice for sectors handling sensitive or regulated data such as defence, finance, and healthcare. Additionally, concerns around cloud data sovereignty and internal policy enforcement are further bolstering demand for on-premises deployments.

Next Generation Firewall Market: Regional Insight

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Europe Next Generation Firewall Market Analysis and Trends

Europe is projected to contribute 40.0% of the global next generation firewall market share in 2025. This regional strength is attributed to stringent regulatory requirements such as the General Data Protection Regulation (GDPR) and the NIS2 Directive, which compel organizations to implement robust cyber security frameworks. The growing emphasis on national cyber security strategies and data sovereignty across EU member states is further driving the deployment of advanced NGFW solutions.

Countries such as Germany, the United Kingdom, and France are leading this shift, supported by government-backed initiatives aimed at enhancing digital resilience in public and private sectors. Additionally, the increasing frequency and sophistication of cyber threats targeting critical infrastructure and enterprise networks in the region are accelerating investments in deep packet inspection, real-time threat intelligence, and integrated intrusion prevention capabilities. These factors collectively position Europe as a significant contributor to the global NGFW market’s sustained growth.

Next Generation Firewall Market Dominating Countries:

United States, Germany, United Kingdom, and France

The United States, Germany, the United Kingdom, and France are among the key nations driving the global next generation firewall (NGFW) market, contributing significantly through technological innovation, strategic cyber security initiatives, and regulatory enforcement.

The United States continues to lead the market with robust investments in cyber security infrastructure across federal agencies, enterprises, and critical infrastructure. The presence of leading NGFW providers, coupled with a proactive stance on zero-trust architecture, is pushing widespread adoption. Additionally, U.S. organizations are increasingly implementing deep packet inspection and AI-powered threat detection in response to evolving cyber risks.

Germany serves as a stronghold in the European market, driven by its emphasis on data protection, industrial cyber security, and compliance with GDPR and the NIS2 Directive. Its advanced manufacturing sector and critical infrastructure networks are adopting NGFW solutions to enhance operational security and prevent data breaches.

The United Kingdom is emerging as a key contributor, leveraging national cyber security policies and digital transformation initiatives to secure government and enterprise systems. The rise in hybrid cloud deployments and remote working trends has further boosted demand for scalable and secure NGFW systems.

France plays a vital role in strengthening Europe’s cyber security ecosystem, with strong government backing for IT modernization in healthcare, defence, and finance. Increased threats to national infrastructure have led to greater investments in intelligent firewall systems and integrated security solutions, reinforcing its presence in the global NGFW landscape.

Market Report Scope

Analyst Viewpoint – Next Generation Firewall Market

• The global next generation firewall (NGFW) market is witnessing sustained momentum as organizations prioritize advanced threat prevention, deep packet inspection, and unified security management in response to rising cyber-attacks. Analysts forecast that on-premises deployments will continue to dominate with a 60.0% share in 2025, as enterprises and government agencies seek full control over data and policy enforcement. Sectors such as BFSI, defence, and healthcare are leading adopters due to stringent compliance requirements and sensitivity of protected information.
• Analysts underline the growing role of emerging technologies including AI-powered threat analytics, machine learning-driven anomaly detection, and zero trust network architectures. These innovations are enhancing the intelligence and agility of NGFW systems, enabling real-time response to dynamic threats. Integration with Secure Access Service Edge (SASE) and cloud-native frameworks is further transforming NGFWs into core components of modern enterprise cyber security strategies.
• Europe is projected to contribute 40.0% of the global NGFW market share in 2025. Industry experts credit this growth to strong regulatory frameworks like GDPR and the NIS2 Directive, combined with national cyber security strategies promoting secure digital transformation. Countries such as Germany, the UK, and France are aggressively deploying NGFWs to counter rising threats to public infrastructure and enterprise IT environments. Simultaneously, North America remains a key market with high demand for AI-enhanced firewall solutions and cloud-integrated security platforms.

Next Generation Firewall Market: Key Development

• In May 2025, Palo Alto Networks unveiled embedded AIOps capabilities within PAN‑OS for NGFWs, enabling automated threat analytics, policy tuning, and SD-WAN orchestration.
• In March 2025, Palo Alto Networks introduced a cloud-native NGFW tailored for Kubernetes environments, offering deep visibility and workload-level policy enforcement.
• In January 2025, a pioneering study on "Dynamically Retrainable Firewalls" showcased AI-powered NGFW systems capable of real-time threat adaptation via reinforcement learning.
• In May 2024, Fortinet released the FortiGate 200G NGFW series in May 2024, featuring high-throughput (multi‑Gbps), AI-powered threat detection, and support for Wi‑Fi 7 environments.
• In April 2024, independent tests awarded Versa NGFW a 99.90% security effectiveness score and the fastest throughput among cloud network firewalls.

Key Players Insights

• Cisco Systems
• Juniper Networks
• Fortinet
• Palo Alto Networks
• Barracuda Networks
• Forcepoint
• Zscaler
• Watchguard Technologies
• Sophos
• Check Point Software Technologies
• Hillstone Networks
• Huawei Technologies
• Untangle
• Stormshield
• SonicWall
• NetGate
• Smoothwall
• Sangfor Technologies
• Microsoft
• VMware

Market Segmentation:

• By Component
  • Solution
  • Services
• By Deployment
  • On-premises
  • Cloud
• By Organization Size
  • Large Enterprises
  • SMEs
• By Industry Vertical
  • BFSI
  • IT & Telecom
  • Government & Defense
  • Healthcare
  • Retail & eCommerce
  • Others
• By Region
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Cisco Systems
  • Juniper Networks
  • Fortinet
  • Palo Alto Networks
  • Barracuda Networks
  • Forcepoint
  • Zscaler
  • Watchguard Technologies
  • Sophos
  • Check Point Software Technologies
  • Hillstone Networks
  • Huawei Technologies
  • Untangle
  • Stormshield
  • SonicWall
  • NetGate
  • Smoothwall
  • Sangfor Technologies
  • Microsoft
  • VMware
  •  

Sources

The Stakeholders Consulted:

• Chief Information Security Officers (CISOs) and network security architects
• IT infrastructure managers across BFSI, healthcare, retail, and telecom sectors
• OEMs and vendors of firewall hardware and software platforms
• Cloud service providers and cybersecurity managed service providers (MSPs)
• Regulatory and compliance officers in government and critical infrastructure
• Cybersecurity researchers and academic institutions focused on threat prevention
• Government agencies and public-sector departments implementing cybersecurity policies
• End-users across sectors including defense, energy, education, and e-commerce

Databases Opened:

• U.S. Cybersecurity & Infrastructure Security Agency (CISA) – Threat Landscape Reports
• National Institute of Standards and Technology (NIST) – Cybersecurity Framework & Firewall Standards
• European Union Agency for Cybersecurity (ENISA) – Cybersecurity Market and Policy Reports
• Indian Computer Emergency Response Team (CERT-In) – Threat Bulletins and Regulatory Frameworks
• World Bank Open Data – ICT Infrastructure and Cyber Resilience Metrics

Magazines & Trade Publications:

• CSO Online – Network Security and Enterprise Threat Defense
• SC Media – Threat Intelligence and Security Product News
• Cybersecurity Insiders – Firewall Trends and Cloud Security Adoption
• TechTarget – Network Security and Infrastructure Insights
• Network World – Next-Gen Firewalls and Secure Access Strategies

Scientific and Industry Journals:

• IEEE Access – Cybersecurity and Network Protection Studies
• Journal of Cybersecurity and Privacy
• Computers & Security (Elsevier)
• ACM Digital Threats: Research and Practice (DTRAP)
• Journal of Information Security and Applications

Newspapers & Media Outlets:

• The Wall Street Journal – Tech and Cybersecurity Section\
• Bloomberg – Enterprise IT and Digital Risk Coverage
• Reuters – Global Cybersecurity and Regulatory Developments
• The Economic Times – Technology and IT Infrastructure
• Business Standard – Cybersecurity and Digital India Policy

Associations and Regulatory Bodies:

• National Institute of Standards and Technology (NIST)
• Cybersecurity & Infrastructure Security Agency (CISA), U.S.
• European Union Agency for Cybersecurity (ENISA)
• Internet Engineering Task Force (IETF) – Network Protocol Standards
• Data Security Council of India (DSCI)
• International Telecommunication Union (ITU) – Cybersecurity Standards

Public Domain Sources:

• U.S. Energy Information Administration (EIA) – For analyzing cybersecurity of smart grid/utility networks
• European Commission – Network and Information Systems (NIS2) Directive Reports
• World Bank – ICT Security and Digital Transformation Initiatives
• Indian Ministry of Electronics and IT (MeitY) – National Cybersecurity Policy Reports
• International Telecommunication Union (ITU) – Global Cybersecurity Index

Proprietary Research Elements:

• CMI Data Analytics Tool
• Proprietary CMI Repository of Market Data (covering past 8 years)
• CMI Expert Interviews and Transcripts (focused on network security, threat intelligence, and NGFW deployment trends)