MICROSEGMENTATION MARKET ANALYSIS

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.

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

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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

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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.