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Next-Generation Firewall (NGFW) Market

Next-Generation Firewall (NGFW) Market Size, Share & Trends Analysis Report by Offering (Hardware, Software, and Service) by Deployment Mode (On-Premises, Cloud) By Enterprise Size (Large Enterprises, Small and Medium-sized Enterprises (SMEs)) by Verticals (BSFI, Healthcare & Life Sciences, Retail & E-commerce, Telecom & IT, Government & Defense, and Others)Forecast Period (2025-2035)

Published: Feb 2026 | Report Code: OMR2024552 | Category : IT Hardware | Delivery Format: /

Industry Overview

Global next-generation firewall (NGFW) market was valued at $5.8 billion in 2024 and is expected to reach $10.4 billion by 2030 and $17.3 billion by 2035, registering a CAGR of 10.5% between 2025 and 2035. The growth of the NGFW market is driven by factors such as AI-powered cyberattacks, an increase in remote work, cloud adoption, increased reliance on technology, stricter regulation, the rise of medical devices, and wearables. AI-powered cyberattacks leverage AI or machine learning (ML) algorithms and techniques to automate, accelerate, or enhance various phases of a cyberattack. This includes identifying vulnerabilities, deploying campaigns along identified attack vectors, advancing attack paths, establishing backdoors within systems, exfiltrating or tampering with data, and interfering with system operations. There are multiple types of cyberattacks enabled by AI and machine learning, such as phishing attacks, social engineering, deepfake techniques, and adversarial AI/ML. In April 2025, Research from Fortinet FortiGuard Labs discovered a record rise in AI-powered, automated attacks, with 36,000 scans per second. This represents a 16.7% year-over-year (YoY) increase. These attacks can be prevented by using a next-generation firewall (NGFW) that can perform deep data packet inspections using AI.

next-generation firewall market dynamics

Market Dynamics

Rising Government IT Investments and Digital Transformation Initiatives

The NGFW market is gaining popularity owing to a rise in government investment and digital transformation initiatives. Various organizations run a mix of on-premises infrastructure and cloud workloads. Government agencies are undergoing massive digital shifts to meet rising citizen expectations, cybersecurity threats, and inter-agency efficiency demands. According to the Government Accountability Office, in 2024, US federal agencies planned to invest approximately $95 billion in IT across more than 6,700 projects. An estimated $37 billion in additional classified and national security systems spending by the Department of Defense brings the total federal IT investment to over $130 billion. This growth in IT spending, with the migration to cloud and hybrid infrastructures, is driving demand for Next-Generation Firewalls (NGFWs) to provide advanced threat protection, policy enforcement, and secure connectivity across increasingly complex government networks.

Role of NGFWs in Regulatory Compliance and Data Protection

NGFWs contribute to organizations regarding compliance and regulations. With increased legislation in data protection, such as GDPR and HIPAA, organizations require security procedures that can meet the set standards. NGFW solutions facilitate the logging and reporting of overall compliance, which some organizations need to demonstrate their compliance with these regulations. GDPR states that organizations should use suitable technical measures designed to protect the personal data they process, and by enabling enforceable security policies and monitoring user activity for attempts to access the prohibited resources, NGFWs may effectively assist in meeting this requirement of GDPR. NGFWs can also facilitate enforcing an encryption policy and scan the network activity to avoid privacy violations. Hence, compliance-related policies enforced through NGFWs help organizations avoid the costs of legal penalties for data breaches and noncompliance.

Challenges: Complexity in Implementation and Management

Organizations have pre-existing processes and implementations in place for security, such as traditional firewalls, VPNs, and others. Incorporation of NGFWs into such already existing architectures generally involves some level of complexity that may often call for massive modification of the existing network fabric. At this level, the integration of these frameworks is so tightly interwoven that any misconfiguration could either create security exposures or overly restrict the environment, disrupting normal operations. Maintenance of NGFWs also presents considerable difficulties regarding the ongoing systems management. Furthermore, based on organizations' growth and extending networks, managing NGFWs becomes challenging. It may lead to a decrease in a proper security stance without spending a lot of resources and time on this issue.

Market Segmentation

  • Based on the offering, the market is segmented into hardware, software, and services.
  • Based on the deployment mode, the market is segmented into on-premises and cloud.
  • Based on the enterprise size, the market is segmented into large enterprises and small and medium-sized enterprises (SMEs).
  • Based on the verticals, the market is segmented into BSFI, healthcare & life sciences, retail & e-commerce, telecom & IT, government & defense, and others.

Large Enterprises: A Key Segment in Market Growth

Based on the enterprise size, the market is sub-segmented into large enterprises and small and medium-sized enterprises (SMEs). Among these, the large enterprises sub-segment is estimated to hold the largest share. NGFWs are best suited for large enterprises that handle sensitive data and are prone to frequent cyberattacks, such as banking organizations. Companies like Fortinet offer FortiGate 7121F series for large enterprises and service providers. The solution has 400G connectivity and a high port density, providing fast and secure data center interconnects and high throughput for ideal deployments such as enterprise edge, hybrid data center core, and across internal segments. Similarly, SonicWall’s NSsp series is designed for large enterprises.

Next-Generation Firewalls in Healthcare Cybersecurity

Healthcare organizations maintain a large amount of personal information, including medical histories and insurance details. Protecting patient confidentiality is both a legal requirement and an important ethical consideration. Stricter regulations, such as the Health Insurance Portability and Accountability Act (HIPAA) and the General Data Protection Regulation (GDPR), demand severe cybersecurity practices. Non-compliance can result in heavy fines and reputational damage. Healthcare networks link hospitals, clinics, laboratories, and telemedicine platforms. A breach in one area can damage the entire ecosystem, risking patient safety and operational continuity.

NGFWs play a pivotal role in meeting these challenges. NGFWs detect and prevent malware, ransomware, and zero-day attacks. Its ability to analyze traffic at the application layer helps identify suspicious behavior early. NGFWs allow network segmentation, isolating critical systems (such as electronic health records) from less sensitive areas. This containment strategy limits the impact of breaches. SonicWall’s next-generation firewalls minimize IoT attack surfaces through network segmentation. SonicWall’s SMA 1000 Series implements least privilege access, reducing the risk of unauthorized access or malicious activity.

Regional Outlook

The global next-generation firewall (NGFW) market is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

North America holds the largest Market Share in the Market

North America holds the largest market share owing to the presence of key players, including Palo Alto Networks, Fortinet, and Check Point Software Technologies Ltd. Moreover, an increase in remote work also leads to growth in the market. Surge in remote work increases demand for advanced network security and protection against cyber-attacks in the workspace. According to the US Bureau of Labor Statistics, remote work rose significantly in all major industries between 2019 and 2021. Additionally, in March 2025, 42.8% of American workers with a higher degree conducted remote work. NGFWs are essential to protect remote work environments by providing threat detection, application awareness, and integrated intrusion prevention. These capabilities are crucial to safeguarding information and providing secure communication channels for remote workers.

Remote Work Adoption Among US Employees by Education Level (March 2025)

remote work adoption among us employees by education level

Source: US Bureau of Labor Statistics

Growing demand for Next-Generation Firewall in the Asia-Pacific

There is a fast-paced digital revolution in the healthcare sector, leading to numerous connected medical devices, electronic health records, and telemedicine solutions. Several government programs work towards developing a strong digital health ecosystem, with increased access, reduced cost, and improved quality of care. As per the World Economic Forum (WEF), India's efforts, for example, the Ayushman Bharat Digital Mission (ABDM) and the Digital Health Incentive Scheme (DHIS), have set the global standard for the digital healthcare revolution. The ABDM seeks to develop a countrywide digital health ecosystem by linking healthcare service providers and patients via distinct health IDs. The scheme aims at bridging critical gaps in health infrastructure, surveillance, and health research. In January 2025, over 73 crore Ayushman Bharat Health Accounts (ABHA) were created, and 5 lakh health professionals were registered. Uttar Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat are the top 5 states with Ayushman Bharat account holders. 49.15% of all the beneficiaries are women. These digital change programs require an effective cybersecurity environment, especially via NGFWs, to safeguard private health information and provide assurance of the resilience of digital health systems.

Market Players Outlook

The major companies operating in the global next-generation firewall market include Palo Alto Networks, Fortinet, Cisco Systems, Inc., Check Point Software Technologies Ltd., Juniper Networks, Inc., among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

The Report Covers

  • Market value data analysis of 2024 and forecast to 2035.
  • Annualized market revenues ($ million) for each market segment.
  • Country-wise analysis of major geographical regions.
  • Key companies operating in the global next-generation firewall market. Based on the availability of data, information related to new products and relevant news is also available in the report.
  • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
  • Analysis of market-entry and market expansion strategies.
  • Competitive strategies by identifying ‘who-stands-where’ in the market.
  1. Report Summary
  • Current Industry Analysis and Growth Potential Outlook
  • Global Next-Generation Firewall (NGFW) Market Sales Analysis – Offering| Deployment Mode Enterprise Size| Verticals| ($ Million)
  • Next-Generation Firewall (NGFW) Market Sales Market Sales Performance of Top Countries
    • Research Methodology
  • Primary Research Approach
  • Secondary Research Approach
    • Market Snapshot
  1. Market Overview and Insights
    • Scope of the Study
    • Analyst Insight & Current Market Trends
      • Key Next-Generation Firewall Market Trends
      • Market Recommendations
  1. Market Determinants
    • Market Drivers
      • Drivers For Global Next-Generation Firewall Market: Impact Analysis
    • Market Pain Points and Challenges
      • Restraints For Global Next-Generation Firewall Market: Impact Analysis
    • Market Opportunities
      • Opportunities For Global Next-Generation Firewall Market: Impact Analysis
  1. Competitive Landscape
    • Competitive Dashboard – Next-Generation Firewall Revenue and Share by Manufacturers
  • Next-Generation Firewall Comparison Analysis
  • Top Market Player Ranking Matrix
    • Key Company Analysis
      • Palo Alto Networks
        • Overview
        • Battery Type Portfolio
        • Financial Analysis (Subject to Data Availability)
        • SWOT Analysis
        • Business Strategy
      • Fortinet, Inc.
        • Overview
        • Battery Type Portfolio
        • Financial Analysis (Subject to Data Availability)
        • SWOT Analysis
        • Business Strategy
      • Cisco Systems, Inc.
        • Overview
        • Battery Type Portfolio
        • Financial Analysis (Subject to Data Availability)
        • SWOT Analysis
        • Business Strategy
      • Check Point Software Technologies Ltd.
        • Overview
        • Battery Type Portfolio
        • Financial Analysis (Subject to Data Availability)
        • SWOT Analysis
        • Business Strategy
      • Juniper Networks, Inc.
        • Overview
        • Battery Type Portfolio
        • Financial Analysis (Subject to Data Availability)
        • SWOT Analysis
        • Business Strategy
  • Top Winning Strategies by Market Players
    • Merger and Acquisition
    • Battery Type Launch
    • Partnership And Collaboration
  1. Global Next-Generation Firewall (NGFW) Market Sales Analysis By Offering ($ Million)
    • Hardware
    • Software
    • Service
  1. Global Next-Generation Firewall (NGFW) Market Sales Analysis By Deployment Mode ($ Million)
    • On-Premises
    • Cloud
  1. Global Next-Generation Firewall (NGFW) Market Sales Analysis By Enterprise Size ($ Million)
    • Large Enterprises
    • Small and Medium-sized Enterprises (SMEs)
  1. Global Next-Generation Firewall (NGFW) Market Sales Analysis By Verticals ($ Million)
    • BSFI
    • Healthcare & Life Sciences
    • Retail & E-commerce
    • Telecom & IT
    • Government & Defense
    • Others
  1. Regional Analysis
    • North American Next-Generation Firewall (NGFW) Market Sales Analysis – Offering| Deployment Mode Enterprise Size| Verticals| Country ($ Million)
  • Macroeconomic Factors for North America
    • United States
    • Canada
  • European Next-Generation Firewall (NGFW) Market Sales Analysis – Offering| Deployment Mode Enterprise Size| Verticals| Country ($ Million)
  • Macroeconomic Factors for Europe
    • UK
    • Germany
    • Italy
    • Spain
    • France
    • Russia
    • Rest of Europe
  • Asia-Pacific Next-Generation Firewall (NGFW) Market Sales Analysis – Offering| Deployment Mode Enterprise Size| Verticals| Country ($ Million)
  • Macroeconomic Factors for Asia-Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia & New Zealand
    • ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And others)
    • Rest of Asia-Pacific
  • Rest of the World Next-Generation Firewall (NGFW) Market Sales Analysis – Offering| Deployment Mode Enterprise Size| Verticals| Country ($ Million)
  • Macroeconomic Factors for the Rest of the World
    • Latin America
    • Middle East and Africa
  1. Company Profiles

1. Global Next-Generation Firewall (NGFW) Market Research and Analysis By Offering, 2024-2035 ($ Million)

2. Global Hardware Next-Generation Firewall (NGFW) Market Research and Analysis By Region, 2024-2035 ($ Million)

3. Global Software Next-Generation Firewall (NGFW) Market Research and Analysis By Region, 2024-2035 ($ Million)

4. Global Service Next-Generation Firewall (NGFW) Market Research and Analysis By Region, 2024-2035 ($ Million)

5. Global Next-Generation Firewall (NGFW) Market Research and Analysis By Deployment Mode, 2024-2035 ($ Million)

6. Global On-Premises Next-Generation Firewall (NGFW) For Market Research and Analysis By Region, 2024-2035 ($ Million)

7. Global Cloud Next-Generation Firewall (NGFW) For Market Research and Analysis By Region, 2024-2035 ($ Million)

8. Global Next-Generation Firewall (NGFW) Market Research and Analysis By Enterprise Size, 2024-2035 ($ Million)

9. Global Next-Generation Firewall (NGFW) for Large Enterprises Market Research and Analysis By Region, 2024-2035 ($ Million)

10. Global Next-Generation Firewall (NGFW) for Small and Medium-sized Enterprises (SMEs) Market Research and Analysis By Region, 2024-2035 ($ Million)

11. Global Next-Generation Firewall (NGFW) Market Research and Analysis By Verticals, 2024-2035 ($ Million)

12. Global Next-Generation Firewall (NGFW) for BSFI Market Research and Analysis By Region, 2024-2035 ($ Million)

13. Global Next-Generation Firewall (NGFW) for Healthcare & Life Sciences Market Research and Analysis By Region, 2024-2035 ($ Million)

14. Global Next-Generation Firewall (NGFW) for Retail & E-commerce Market Research and Analysis By Region, 2024-2035 ($ Million)

15. Global Next-Generation Firewall (NGFW) for Telecom & IT Market Research and Analysis By Region, 2024-2035 ($ Million)

16. Global Next-Generation Firewall (NGFW) for Government & Defense Market Research and Analysis By Region, 2024-2035 ($ Million)

17. Global Next-Generation Firewall (NGFW) for Other Market Research and Analysis By Region, 2024-2035 ($ Million)

18. Global Next-Generation Firewall (NGFW) Market Research and Analysis By Region, 2024-2035 ($ Million)

19. North American Next-Generation Firewall (NGFW) Market Research and Analysis By Country, 2024-2035 ($ Million)

20. North American Next-Generation Firewall (NGFW) Market Research and Analysis By Offering, 2024-2035 ($ Million)

21. North American Next-Generation Firewall (NGFW) Research and Analysis By Deployment Mode, 2024-2035 ($ Million)

22. North American Next-Generation Firewall (NGFW) Market Research and Analysis By Enterprise Size, 2024-2035 ($ Million)

23. North American Next-Generation Firewall (NGFW) Market Research and Analysis By Verticals, 2024-2035 ($ Million)

24. European Next-Generation Firewall (NGFW) Market Research and Analysis By Country, 2024-2035 ($ Million)

25. European Next-Generation Firewall (NGFW) Market Research and Analysis By Offering, 2024-2035 ($ Million)

26. European Next-Generation Firewall (NGFW) Research and Analysis By Deployment Mode, 2024-2035 ($ Million)

27. European Next-Generation Firewall (NGFW) Market Research and Analysis By Enterprise Size, 2024-2035 ($ Million)

28. European Next-Generation Firewall (NGFW) Market Research and Analysis By Verticals, 2024-2035 ($ Million)

29. Asia-Pacific Next-Generation Firewall (NGFW) Market Research and Analysis By Country, 2024-2035 ($ Million)

30. Asia-Pacific Next-Generation Firewall (NGFW) Market Research and Analysis By Offering, 2024-2035 ($ Million)

31. Asia-Pacific Next-Generation Firewall (NGFW) Research and Analysis By Deployment Mode, 2024-2035 ($ Million)

32. Asia-Pacific Next-Generation Firewall (NGFW) Market Research and Analysis By Enterprise Size, 2024-2035 ($ Million)

33. Asia-Pacific Next-Generation Firewall (NGFW) Market Research and Analysis By Verticals, 2024-2035 ($ Million)

34. Rest of The World Next-Generation Firewall (NGFW) Market Research and Analysis By Country, 2024-2035 ($ Million)

35. Rest of The World Next-Generation Firewall (NGFW) Market Research and Analysis By Offering, 2024-2035 ($ Million)

36. Rest Of The World Next-Generation Firewall (NGFW) Research and Analysis By Deployment Mode, 2024-2035 ($ Million)

37. Rest of The World Next-Generation Firewall (NGFW) Market Research and Analysis By Enterprise Size, 2024-2035 ($ Million)

38. Rest of The World Next-Generation Firewall (NGFW) Market Research and Analysis By Verticals, 2024-2035 ($ Million)

1. Global Next-Generation Firewall (NGFW) Market Research and Analysis By Offering, 2024 Vs 2035 (%)

2. Global Hardware Next-Generation Firewall (NGFW) Market Research and Analysis By Region, 2024 Vs 2035 (%)

3. Global Software Next-Generation Firewall (NGFW) Market Research and Analysis By Region, 2024 Vs 2035 (%)

4. Global Service Next-Generation Firewall (NGFW) Market Research and Analysis By Region, 2024 Vs 2035 (%)

5. Global Next-Generation Firewall (NGFW) Market Research and Analysis By Deployment Mode, 2024 Vs 2035 (%)

6. Global On-Premises Next-Generation Firewall (NGFW) For Market Research and Analysis By Region, 2024 Vs 2035 (%)

7. Global Cloud Next-Generation Firewall (NGFW) For Market Research and Analysis By Region, 2024 Vs 2035 (%)

8. Global Next-Generation Firewall (NGFW) Market Research and Analysis By Enterprise Size, 2024 Vs 2035 (%)

9. Global Next-Generation Firewall (NGFW) for Large Enterprises Market Research and Analysis By Region, 2024 Vs 2035 (%)

10. Global Next-Generation Firewall (NGFW) for Small and Medium-sized Enterprises (SMEs) Market Research and Analysis By Region, 2024 Vs 2035 (%)

11. Global Next-Generation Firewall (NGFW) Market Research and Analysis By Verticals, 2024 Vs 2035 (%)

12. Global Next-Generation Firewall (NGFW) for BSFI Market Research and Analysis By Region, 2024 Vs 2035 (%)

13. Global Next-Generation Firewall (NGFW) for Healthcare & Life Sciences Market Research and Analysis By Region, 2024 Vs 2035 (%)

14. Global Next-Generation Firewall (NGFW) for Retail & E-commerce Market Research and Analysis By Region, 2024 Vs 2035 (%)

15. Global Next-Generation Firewall (NGFW) for Telecom & IT Market Research and Analysis By Region, 2024 Vs 2035 (%)

16. Global Next-Generation Firewall (NGFW) for Government & Defense Market Research and Analysis By Region, 2024 Vs 2035 (%)

17. Global Next-Generation Firewall (NGFW) for Other Market Research and Analysis By Region, 2024 Vs 2035 (%)

18. Global Next-Generation Firewall (NGFW) Market Research and Analysis By Region, 2024 Vs 2035 (%)

19. US Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

20. Canada Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

21. UK Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

22. France Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

23. Germany Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

24. Italy Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

25. Spain Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

26. Russia Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

27. Rest of Europe Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

28. India Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

29. China Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

30. Japan Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

31. South Korea Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

32. Australia and New Zealand Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

33. ASEAN Economies Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

34. Rest of Asia-Pacific Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

35. Latin America Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

36. Middle East and Africa Next-Generation Firewall (NGFW) Market Size, 2024-2035 ($ Million)

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FAQS

The size of the Next-Generation Firewall (NGFW) market in 2024 is estimated to be around $5.8 billion.

North America holds the largest share in the Next-Generation Firewall (NGFW) market.

Leading players in the Next-Generation Firewall (NGFW) market include Palo Alto Networks, Fortinet, Cisco Systems, Inc., Check Point Software Technologies Ltd., Juniper Networks, Inc., among others.

Next-Generation Firewall (NGFW) market is expected to grow at a CAGR of 10.5% from 2025 to 2035.

The next-generation firewall (NGFW) market is growing due to rising cyber threats, increasing network complexity, and growing adoption of cloud-based security solutions.