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Microsegmentation is a security network technique that enables security architects to divide data centers into security segments and reduce individual workload levels. This segmentation is used to provide support to security teams to establish control and deliver services for each unique segment of the infrastructure. Security teams are deploying security policies inside data centers using network virtualization techniques instead of installing multiple firewalls. Moreover, microsegmentation can also be used to protect virtual machines by installing security applications in an enterprise network. Microsegmentation provides many benefits such as reducing the risk of cyberattack, improving lateral movement security, implementing of security policies in data centers & cloud, and improving regulatory compliance posture. Nowadays, cyber security issues have become a major threat to businesses. After analyzing recent threats and cyber security trends, analysts have concluded that a huge amount of data breaches have happened from organizations and (IoT) devices. For instance, according to Coherent Market Insights analysis, the number of data breaches increased to 4,100 million in the first half of 2019. These factors are expected to facilitate demand for microsegmentation, thereby driving the microsegmentation market growth.

The global microsegmentation market is estimated to account for US$ 1490.4 Mn in terms of value by the end of 2021 and is expected to grow at a CAGR of 25.0% during the forecasted period (2022-2030).

Market Opportunity

Nowadays, companies have a large amount of data, which makes it difficult for companies to handle such complex data. Cyber-attacks are increasing due to connectivity through the usage of big data, the cloud, social media, and other mobile services. The adoption of social media, the Cloud, and many other applications have also increased insider threat into networks, which can cause significant loss to the IT industry. For instance, on June 12, 2019, Akamai Technologies launched a Cloud Edge platform that is designed to securely deliver data to connected devices. According to IoT Analytics Research, around 22,000 million connected devices will deliver data across the internet by 2020. Billions of applications such as virtual machines will send trillions of messages, which can pose a challenge for businesses to protect sensitive data and information.

Most of companies are adopting SaaS (Software as a Service) based applications for security purposes and it has been observed that 35% of the organizations were using this application in 2017. The adoption rate is expected to reach 73% by 2020. For instance, in June 2019, Cipher cloud, a provider of cyber securities solutions, launched a new safety feature in its CipherCloud Zero Trust CASB+ platform, which is used to prevent threats by using data protection techniques. These factors are expected to increase demand for microsegmentation.

Market Restraint

Most companies are adopting SaaS (Software as a Service) based applications for security purposes and it has been observed that 35% of the organizations were using this application in 2017. The adoption rate is expected to reach 73% by 2020. For instance, in June 2019, Cipher cloud, a provider of cyber securities solutions, launched a new safety feature in its CipherCloud Zero Trust CASB+ platform, which is used to prevent threats by using data protection techniques. These factors are expected to increase demand for microsegmentation.

The major factor restraining the growth of the global microsegmentation market is the high operational and infrastructure cost of installing these services. All companies are migrating to the SaaS or cloud platform in order to protect their data from cyberattacks and this migration will involve time & money investment. Thus, in turn, is expected to hinder the growth of the microsegmentation market over the forecast period.

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Microsegmentation Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 1490.4 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR:  25.0% 2030 Value Projection: US$ 11024.1 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East and Africa: Israel, GCC Countries, South Africa, and Rest of Middle East and Africa
Segments covered:
  • By Component: Software and Services
  • By Service: Managed Services and Professional Services
  • By Security: Network Security, Database Security, and Application Security
  • By Deployment Type: On-premises and Cloud
  • By Organization Size: SMEs and Large Enterprises
  • By Vertical: Government & Defense, BFSI, IT & Telecom, Healthcare, Retail, Manufacturing, Energy & Utility, and Others
Companies covered:

Cisco Systems Inc. (US), Akamai Technologies, Inc., Palo Alto Networks, Inc., Symantec Corporation, Okta, Inc., Forcepoint, LLC, Cyxtera Technologies, Sophos Group Plc, Google LLC, Microsoft, Inc., VMware Inc., Trend Micro Incorporated, Cloudflare, IBM Corporation, Fortinet, Check Point Software Technologies Ltd., Unisys, vArmour, Inc., OPAQ Networks, Inc., ExtraHop Networks, ShieldX, Bracket Computing Inc., Nutanix, and Cloudvisory.

Growth Drivers:
  • Increasing adoption of advanced technologies owing to rising security concerns
  • Increasing cyber attacks
Restraints & Challenges:
  • High operational and maintenance cost
  • The complexity of software and lack of resources

Microsegmentation Market - Impact of Coronavirus (Covid-19) Pandemic:

Due to the Covid-19 pandemic, several industries have witnessed a significant shift in terms of security in their business. There was a significant impact on the growth of the microsegmentation market. Moreover, several cases of cybercrimes have been observed. Cyber threat has also been increasing, as every part of the demographic has searched for information related to COVID-19 by using a malicious domain name registered with names such as COVID-19 or coronavirus. For instance, according to Palo Alto Networks Inc., more than 40,000 suspicious registered domain names were identified at the end of March 2020.

Moreover, in recent times, the use of identical business email addresses was also used to carry out cyber-attacks. Due to the rise in cyber threats, several organizations started adopting microsegmentation solutions and the COVID-19 Pandemic.

Competitive Scenario    

Key players in the global microsegmentation market include Cisco Systems Inc. (US), Akamai Technologies, Inc., Palo Alto Networks, Inc., Symantec Corporation, Okta, Inc., Forcepoint, LLC, Cyxtera Technologies, Sophos Group Plc, Google LLC, Microsoft, Inc., VMware Inc., Trend Micro Incorporated, Cloudflare, IBM Corporation, Fortinet, Check Point Software Technologies Ltd., Unisys, vArmour, Inc., OPAQ Networks, Inc., ExtraHop Networks, ShieldX, Bracket Computing Inc., Nutanix, and Cloudvisory.

Recent Developments:

In November 2022, Vmware Inc., a virtualization technology & cloud computing company, announced the new offering of VMware Tanzu based on sovereign clouds and also an advanced VMware Aria cloud management platform.

Forecasted North America is expected to hold a dominant position in the global microsegmentation market in 2030

Statistics:

North America held dominant position in the global microsegmentation market in 2021, accounting for 47.9% share in terms of value, followed by Europe and Asia Pacific.

Figure 1: Global Microsegmentation Market Share (%), By Region, 2021

Microsegmentation  | Coherent Market Insights

North America Microsegmentation Market is expected to witness a high CAGR over the forecast period.

North America is expected to be one of the prominent regions in the global market and witness high growth during the forecast period. This is owing to increasing demand for Security systems.

Figure 2: Global Microsegmentation Market (US$ Mn) Analysis and Forecast, 2017 – 2030

Microsegmentation  | Coherent Market Insights

The Global Microsegmentation Market was valued at US$ 1490.4 Mn in 2021 and is expected to reach US$ 11024.1 Mn by 2030, growing at a CAGR of 25.0% between 2022 and 2030.

Microsegmentation is a security practice that divides network into segments so that businesses can analyze, monitor, visualize, and control the traffic. In other words, microsegmentation is a security segmentation and this process is used by professionals to break a network into smaller networks in order to keep the overall system security. The security engineers create zones to isolate data centers, applications, and workload across cloud, on premise, and hybrid networks. Microsegmentation is gaining popularity due to its operational efficiency. Furthermore, major global players across different regions are focusing on developing new products and services with new features and technologies to gain a competitive edge in the market. Industries are developing securities with new features in order to protect and secure organizational data.

The global microsegmentation market was valued at US$ 1490.4 Mn in 2021.

Market Dynamics

The global microsegmentation market is expected to grow significantly during the forecast period, owing to the rising popularity of digitization in organizations. Organization databases mainly include sensitive data related to payment cards and financial information. Databases are the primary targets of cybercriminals, which increases the loss of personal and business information. Due to the increasing incidence of data breaches and high-profile data theft, organizations are planning to detect future threats. For instance, according to Coherent Market Insights analysis, the global cyber security market reached US$ 121,000 million in 2017 from US$ 3,500 million in 2004. These factors are expected to drive market growth during the forecast period.

Among verticals, the banking, financial services, and insurance (BFSI) segment are expected to exhibit the highest growth during the forecast period. The security solutions provide support to the financial service provider to protect their data, and customers, meet industry & government compliance standards and avoid damage caused by data breaches. The BFSI vertical is continuously focusing on upgrading its processing and transactional technologies and also requires end-to-end security to minimize operations against both internal and external threats. For instance, in September 2016, healthcare and banking, financial services, and insurance (BFSI) used Microsoft cloud platforms to protect employee data and optimize business processes and models. The demand for cyber security solutions is increasing in BFSI vertical due to the rising adoption of smart banking, internet banking, and mobile banking. The industry is facing challenges in maintaining application, network, and data security. The attackers are targeting these sectors with viruses, malware, and other cyber-attacks.

Key features of the study:

  • This report provides an in-depth analysis of the global microsegmentation market size (US$ Million) and compound annual growth rate (CAGR %) for the forecast period (2022– 2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by the leading market players
  • It profiles leading players in the global microsegmentation market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, market capital, key developments, strategies, and future plans
  • Companies covered as a part of this study include Cisco Systems Inc. (US), Akamai Technologies, Inc., Palo Alto Networks, Inc., Symantec Corporation, Okta, Inc., Forcepoint, LLC, Cyxtera Technologies, Sophos Group Plc, Google LLC, Microsoft, Inc., VMware Inc., Trend Micro Incorporated, Cloudflare, IBM Corporation, Fortinet, Check Point Software Technologies Ltd., Unisys, vArmour, Inc., OPAQ Networks, Inc., ExtraHop Networks, ShieldX, Bracket Computing Inc., Nutanix, and Cloudvisory
  • Insights from this report would allow marketers and management authorities of companies to make informed decisions regarding future product launches, product upgrades, market expansion, and marketing tactics
  • The global microsegmentation market report caters to various stakeholders in this industry including investors, suppliers, managed service providers, third-party service providers, distributors, new entrants, and value-added resellers
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global microsegmentation market

Detailed Segmentation

  • Global Microsegmentation Market, By Component:
    • Software
    • Services
  • Global Microsegmentation Market, By Services:
    • Managed Services
    • Professional Services
  • Global Microsegmentation Market, By Security:
    • Network Security
    • Database Security
    • Application Security
  • Global Microsegmentation Market, By Deployment Type:
    • On-premises
    • Cloud
  • Global Microsegmentation Market, By Organization Size:
    • Managed Services
    • Professional Services
  • Global Microsegmentation Market, By Vertical:
    • Government & Defense
    • BFSI
    • IT & Telecom
    • Healthcare
    • Retail
    • Manufacturing
    • Energy & Utility
    • Others
  • Global Microsegmentation Market, By Region:
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East and Africa
  • Company Profiles
    • Cisco Systems Inc. (US)*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
    • Akamai Technologies, Inc.
    • Palo Alto Networks, Inc.
    • Symantec Corporation
    • Okta, Inc.
    • Forcepoint, LLC.
    • Cyxtera Technologies
    • Sophos Group Plc.
    • Google LLC.
    • Microsoft, Inc.
    • VMware Inc.
    • Trend Micro Incorporated
    • Cloudflare
    • IBM Corporation
    • Fortinet
    • Check Point Software Technologies Ltd.
    • Unisys
    • vArmour, Inc.
    • OPAQ Networks, Inc.
    • ExtraHop Networks
    • ShieldX
    • Bracket Computing Inc.
    • Nutanix
    • Cloudvisory

Frequently Asked Questions

The Global Microsegmentation Market is valued of US$ 1490.4 Million in 2021.
The Market is expected to witness a CAGR of 25.0% during the forecast period (2022-2030).
Major factor driving the growth of the Market during the forecast period is the Growing importance of efficient mission-critical operations and the Expansion of the LTE network leading to demand for LTE-integrated LMR devices
The Market is estimated to reach US$ 11024.1 Million by 2030.
Among regions, the North America region held the largest share in the Markets in 2021.
The Market are Cisco Systems Inc. (US), Akamai Technologies, Inc., Palo Alto Networks, Inc., Symantec Corporation, Okta, Inc., Forcepoint, LLC, Cyxtera Technologies, Sophos Group Plc, Google LLC, Microsoft, Inc., VMware Inc., Trend Micro Incorporated, Cloudflare, IBM Corporation, Fortinet, Check Point Software Technologies Ltd., Unisys, vArmour, Inc., OPAQ Networks, Inc., ExtraHop Networks, ShieldX, Bracket Computing Inc., Nutanix, and Cloudvisory.

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