Next-Generation Firewall (NGFW) Market Size, Share, Growth, and Industry Analysis, By Types (Firewall, Endpoint Security, Antispam, Unified Threat Management, Network Security, Identity-based security), By Applications (BFSI, Retail, IT and Telecom, Government and Public Utilities, Healthcare, Energy and Utilities, Education, Others (Travel, Transport, and Manufacturing)) , and Regional Insights and Forecast to 2035

Next-Generation Firewall (NGFW) Market Size

The Global Next-Generation Firewall (NGFW) Market size was USD 5.97 billion in 2025 and is projected to touch USD 6.53 billion in 2026, expanding further to USD 7.15 billion in 2027 and reaching USD 14.73 billion by 2035. The market is exhibiting a CAGR of 9.45% during the forecast period from 2026 to 2035. Growth momentum is supported by increasing enterprise-level cybersecurity adoption, where over 70% of organizations prioritize advanced firewall capabilities. Nearly 65% of enterprises are transitioning from traditional firewalls to NGFW platforms due to enhanced application visibility, while more than 60% of deployments focus on encrypted traffic inspection. Cloud-based NGFW adoption accounts for approximately 58% of total implementations, reinforcing long-term market expansion.

The US Next-Generation Firewall (NGFW) Market is witnessing steady growth driven by heightened cyber risk awareness and strong digital infrastructure maturity. Around 74% of US enterprises deploy NGFW solutions to secure cloud and hybrid environments. Nearly 69% of organizations integrate NGFWs with identity-based security frameworks, while about 63% focus on intrusion prevention and real-time threat analytics. Small and medium enterprises contribute close to 41% of new deployments as regulatory compliance and ransomware protection become priorities. Additionally, approximately 57% of organizations increase spending on managed NGFW services to address internal skill gaps, reinforcing sustained market expansion across the US.

Key Findings

• Market Size: Global market reached USD 5.97 billion in 2025, USD 6.53 billion in 2026, projected to reach USD 14.73 billion by 2035 at 9.45%.
• Growth Drivers: Over 72% adoption driven by encrypted traffic growth, 68% cloud migration impact, and 61% rising cyberattack complexity.
• Trends: Nearly 60% cloud-native NGFW use, 55% AI-enabled threat detection, and 52% zero-trust security integration.
• Key Players: Palo Alto Networks, Fortinet, Cisco Systems, Check Point Software, Sophos Ltd., and more.
• Regional Insights: North America holds 38%, Europe 28%, Asia-Pacific 24%, Middle East & Africa 10% share, totaling 100% global presence.
• Challenges: About 49% face configuration complexity, 46% report performance latency concerns, and 42% cite cybersecurity skill shortages.
• Industry Impact: Nearly 67% enterprises report reduced breach incidents, while 58% experience improved compliance readiness.
• Recent Developments: Around 59% vendors enhanced AI analytics, 56% expanded cloud-native models, and 52% improved identity-based controls.

Unique market dynamics define the Next-Generation Firewall (NGFW) market as organizations shift toward proactive and adaptive cybersecurity frameworks. Enterprises increasingly demand unified platforms that combine application control, threat intelligence, and identity awareness. Nearly 64% of organizations emphasize centralized visibility across distributed networks, while about 57% prioritize automated response features. Integration with cloud platforms, remote workforce protection, and compliance-driven deployments continues to reshape purchasing decisions. As digital ecosystems grow more complex, NGFW solutions remain critical in enabling scalable, intelligent, and resilient network security architectures.

Next-Generation Firewall (NGFW) Market Trends

The Next-Generation Firewall (NGFW) market is witnessing strong transformation as enterprises prioritize advanced cybersecurity architectures to combat evolving threat landscapes. More than 70% of organizations have shifted from traditional firewalls to NGFW solutions to enable deep packet inspection, intrusion prevention, and application-level visibility. Around 65% of enterprises now integrate NGFWs with secure access frameworks to monitor encrypted traffic, reflecting the rapid rise in encrypted data flows that account for over 85% of total network traffic. Cloud-based NGFW deployments are gaining traction, with nearly 60% of businesses preferring virtual or cloud-native firewall models to support hybrid and remote work environments.

Artificial intelligence and machine learning integration is another defining trend, as approximately 55% of NGFW solutions now include automated threat detection and behavioral analytics to reduce response time. Small and medium enterprises represent close to 40% of new NGFW adoption, driven by increased awareness of cyber risks and compliance requirements. Additionally, sector-specific demand is rising, with banking, healthcare, and retail together accounting for over 50% of NGFW usage due to heightened regulatory pressure and data protection needs. These trends collectively highlight how the Next-Generation Firewall (NGFW) market continues to evolve toward intelligent, scalable, and adaptive security platforms.

Next-Generation Firewall (NGFW) Market Dynamics

OPPORTUNITY

Growth in Cloud-Native and Remote Security Architectures

The shift toward cloud-native IT infrastructure and distributed work environments creates strong opportunities in the Next-Generation Firewall (NGFW) market. Over 68% of organizations now operate hybrid or multi-cloud networks, increasing the need for NGFW solutions that deliver centralized visibility and policy control. Nearly 62% of enterprises prioritize cloud-deployed NGFWs to secure remote endpoints and branch offices. Additionally, around 57% of IT leaders report improved threat detection after integrating NGFWs with cloud access and identity-based security frameworks. This growing reliance on flexible, software-driven security models positions NGFW vendors to expand adoption across diverse enterprise sizes.

DRIVERS

Rising Frequency of Sophisticated Cyber Threats

Increasing cyberattack complexity is a primary driver for the Next-Generation Firewall (NGFW) market. More than 74% of enterprises report facing application-layer and encrypted threats that traditional firewalls cannot detect. NGFW adoption has enabled nearly 66% of organizations to enhance real-time intrusion prevention and malware blocking. Around 59% of security teams favor NGFW platforms for their ability to inspect encrypted traffic without disrupting operations. As cyber risks intensify across industries, demand for advanced firewall capabilities continues to accelerate.

RESTRAINTS

"High Complexity in Configuration and Policy Management"

The Next-Generation Firewall (NGFW) market faces restraints related to complex configuration and ongoing management requirements. Approximately 49% of organizations indicate difficulties in maintaining optimal firewall policies as network environments grow more dynamic. Nearly 46% of IT teams struggle with rule overlap and misconfigurations, increasing operational workload. In addition, about 43% of enterprises report limited in-house expertise to fully utilize advanced NGFW features such as deep packet inspection and behavioral analytics. These factors can delay implementation timelines and restrict adoption among smaller organizations.

CHALLENGE

"Balancing Network Performance with Deep Security Inspection"

Ensuring high network performance while enabling advanced security functions remains a major challenge in the Next-Generation Firewall (NGFW) market. Over 52% of enterprises express concerns about latency when multiple inspection layers are activated. Around 47% report challenges in scaling NGFW solutions to manage increasing encrypted traffic volumes efficiently. Additionally, nearly 41% of organizations face difficulties maintaining consistent user experience while enforcing strict security policies. Overcoming these performance and scalability challenges is critical for sustained NGFW adoption in high-traffic enterprise networks.

Segmentation Analysis

The Next-Generation Firewall (NGFW) market segmentation highlights how security investments are distributed across different solution types and industry applications. The global Next-Generation Firewall (NGFW) market size was USD 5.97 Billion in 2025 and is projected to touch USD 6.53 Billion in 2026, further expanding to USD 14.73 Billion by 2035, exhibiting a CAGR of 9.45% during the forecast period. By type, organizations increasingly deploy integrated NGFW solutions to address application-layer threats, encrypted traffic inspection, and identity-based access control. By application, industries such as BFSI, IT & Telecom, and Government adopt NGFWs to reduce breach exposure, ensure compliance, and maintain business continuity. Each segment reflects varying security priorities, deployment intensity, and risk exposure levels, shaping demand patterns across enterprise sizes and verticals.

By Type

Firewall

Firewall-based NGFW solutions continue to form the core of enterprise network security frameworks. Nearly 72% of enterprises rely on advanced firewall capabilities to inspect application traffic and prevent unauthorized access. Around 64% of organizations use firewall-centric NGFWs to manage encrypted data flows, while 58% value centralized policy enforcement. Firewall solutions remain critical for perimeter and internal network segmentation.

Firewall type accounted for USD 2.29 Billion in 2025, representing nearly 38% market share, and is expected to grow at a CAGR of about 9.1% driven by continuous upgrades in deep packet inspection and threat intelligence integration.

Endpoint Security

Endpoint security within NGFW ecosystems is gaining importance as remote work expands. Around 61% of enterprises integrate NGFWs with endpoint protection to monitor device-level threats. Nearly 55% of security teams use endpoint-aware NGFWs to enforce access policies based on device posture. This segment strengthens zero-trust enforcement.

Endpoint Security held approximately USD 0.84 Billion in 2025, accounting for nearly 14% share, and is projected to grow at a CAGR of about 9.8% due to rising remote workforce exposure.

Antispam

Antispam capabilities embedded in NGFWs help filter malicious emails and phishing attempts. Nearly 49% of organizations deploy NGFW antispam features to reduce email-based attack vectors. Around 46% of enterprises report fewer security incidents after enabling integrated spam filtering.

Antispam solutions generated nearly USD 0.60 Billion in 2025, representing about 10% share, and are expected to grow at a CAGR of around 8.7% supported by increasing phishing attacks.

Unified Threat Management

Unified Threat Management NGFWs combine multiple security functions into a single platform. About 57% of small and mid-sized enterprises prefer UTM-based NGFWs to simplify security operations. Nearly 52% cite reduced operational overhead as a key benefit.

Unified Threat Management accounted for USD 1.01 Billion in 2025, capturing nearly 17% market share, with an expected CAGR of around 9.6% driven by demand for consolidated security solutions.

Network Security

Network security-focused NGFWs emphasize intrusion prevention and traffic visibility. Nearly 66% of enterprises deploy these solutions to detect lateral movement within networks. Around 59% use them for internal segmentation and breach containment.

Network Security generated approximately USD 0.90 Billion in 2025, representing nearly 15% share, and is projected to grow at a CAGR of about 9.3%.

Identity-based Security

Identity-based security within NGFWs enables access decisions based on user identity. About 54% of enterprises implement identity-aware firewalls to support zero-trust models. Nearly 50% report improved access control accuracy.

Identity-based Security accounted for USD 0.33 Billion in 2025, holding around 6% share, and is expected to grow at a CAGR of nearly 10.4% due to increasing zero-trust adoption.

By Application

BFSI

The BFSI sector remains a major adopter of NGFW solutions due to high cyber risk exposure. Nearly 78% of financial institutions deploy NGFWs to monitor real-time transactions and prevent fraud. Around 69% use advanced firewall analytics for regulatory compliance.

BFSI accounted for USD 1.43 Billion in 2025, representing about 24% share, and is expected to grow at a CAGR of nearly 9.2% driven by rising digital banking activities.

Retail

Retail organizations deploy NGFWs to protect payment systems and customer data. Nearly 63% of retailers rely on NGFWs to secure omnichannel platforms, while 56% focus on preventing POS-related breaches.

Retail generated approximately USD 0.72 Billion in 2025, holding around 12% share, and is projected to grow at a CAGR of about 9.0%.

IT and Telecom

IT and Telecom companies use NGFWs to secure large-scale networks and data centers. About 74% of telecom operators deploy NGFWs to manage high traffic volumes, while 67% use them to protect cloud infrastructure.

IT and Telecom accounted for USD 1.20 Billion in 2025, representing nearly 20% share, with a CAGR of around 9.7%.

Government and Public Utilities

Government agencies adopt NGFWs to safeguard critical infrastructure. Nearly 71% of public sector organizations deploy NGFWs to prevent cyber espionage, while 62% focus on network visibility.

Government and Public Utilities contributed USD 0.90 Billion in 2025, accounting for about 15% share, and are expected to grow at a CAGR of roughly 9.4%.

Healthcare

Healthcare providers rely on NGFWs to protect patient data and connected medical devices. Around 66% of hospitals use NGFWs to secure electronic health records, while 58% focus on ransomware prevention.

Healthcare accounted for USD 0.60 Billion in 2025, holding nearly 10% share, with an expected CAGR of about 9.8%.

Energy and Utilities

Energy and utility companies deploy NGFWs to secure industrial control systems. Nearly 59% of operators use NGFWs to protect operational technology networks.

Energy and Utilities generated approximately USD 0.42 Billion in 2025, representing about 7% share, and are projected to grow at a CAGR of around 9.1%.

Education

Educational institutions adopt NGFWs to secure digital learning platforms. Around 55% of universities deploy NGFWs to manage campus-wide traffic.

Education accounted for USD 0.30 Billion in 2025, holding nearly 5% share, with a CAGR of about 8.9%.

Others (Travel, Transport, and Manufacturing)

Other industries deploy NGFWs to secure operational and logistics systems. Nearly 52% focus on protecting connected devices.

Others contributed USD 0.40 Billion in 2025, representing about 7% share, and are expected to grow at a CAGR of roughly 9.3%.

Next-Generation Firewall (NGFW) Market Regional Outlook

The global Next-Generation Firewall (NGFW) market reached USD 6.53 Billion in 2026 and continues to expand steadily across regions. Regional adoption reflects differences in digital maturity, cybersecurity regulations, and enterprise IT spending. North America, Europe, Asia-Pacific, and Middle East & Africa together account for 100% of global market share, with each region showing distinct demand drivers and deployment priorities.

North America

North America represents the largest regional market for NGFW solutions, driven by high cybersecurity awareness and early technology adoption. Nearly 76% of enterprises deploy advanced NGFWs to protect cloud and hybrid networks. Around 68% of organizations integrate NGFWs with zero-trust frameworks to manage identity-based access. The region accounted for approximately 38% market share, translating to nearly USD 2.48 Billion in 2026, supported by strong enterprise security investments.

Europe

Europe demonstrates strong NGFW adoption due to strict data protection regulations. Nearly 71% of enterprises deploy NGFWs to ensure compliance and data privacy. About 63% prioritize encrypted traffic inspection. Europe held around 28% market share, equivalent to nearly USD 1.83 Billion in 2026, driven by increasing digital transformation across industries.

Asia-Pacific

Asia-Pacific is witnessing rapid NGFW adoption as enterprises modernize IT infrastructure. Nearly 67% of organizations invest in NGFWs to protect expanding digital ecosystems. Around 61% focus on securing cloud workloads. The region accounted for approximately 24% share, translating to about USD 1.57 Billion in 2026, supported by rising cybersecurity awareness.

Middle East & Africa

Middle East & Africa shows steady NGFW adoption driven by infrastructure development and digital initiatives. Around 58% of enterprises deploy NGFWs to secure critical networks, while 54% focus on threat prevention. The region held nearly 10% market share, equal to approximately USD 0.65 Billion in 2026, supported by increasing focus on cyber resilience.

List of Key Next-Generation Firewall (NGFW) Market Companies Profiled

Investment Analysis and Opportunities in Next-Generation Firewall (NGFW) Market

The Next-Generation Firewall (NGFW) market continues to attract significant investment due to rising cybersecurity risks and digital transformation initiatives. Nearly 67% of enterprises have increased their network security budgets, with NGFWs accounting for a major portion of these investments. Around 61% of organizations prioritize spending on cloud-based NGFW solutions to support hybrid work models. Private and institutional investors show strong interest, as approximately 58% of security-focused investment funds allocate capital toward network and cloud security technologies. Additionally, about 54% of enterprises plan to invest in AI-enabled firewall platforms to reduce manual threat response efforts. Opportunities are expanding in emerging economies, where nearly 46% of businesses are upgrading from legacy firewalls to advanced NGFW solutions. Managed security services linked to NGFW deployment also present opportunities, with around 49% of organizations preferring outsourced firewall management to address skill shortages. These trends highlight sustained investment momentum and long-term growth opportunities in the NGFW market.

New Products Development

Product innovation remains a central focus in the Next-Generation Firewall (NGFW) market as vendors respond to evolving threat patterns. Nearly 62% of NGFW manufacturers have launched products with integrated artificial intelligence for real-time threat detection. Around 57% of newly developed NGFW solutions support cloud-native deployment models to meet demand from hybrid enterprises. Secure access integration is also increasing, with approximately 53% of new products enabling identity-aware and zero-trust security enforcement. Performance optimization is another development focus, as nearly 48% of vendors enhance throughput to handle encrypted traffic inspection efficiently. Additionally, about 45% of product launches emphasize simplified management dashboards to reduce configuration complexity. These ongoing product advancements are improving detection accuracy, deployment flexibility, and operational efficiency across enterprise security environments.

Developments

• In 2024, several NGFW manufacturers enhanced AI-driven threat analytics, with nearly 59% of updated platforms demonstrating improved detection accuracy against unknown malware. These upgrades focused on behavioral analysis and automated response capabilities.

• Multiple vendors expanded cloud-native NGFW offerings, addressing demand from hybrid enterprises. Around 56% of new deployments supported seamless integration with multi-cloud environments, improving centralized policy enforcement.

• Zero-trust functionality was strengthened across NGFW portfolios in 2024, with nearly 52% of product updates enabling deeper identity-based access control to reduce insider threat exposure.

• Performance optimization initiatives gained momentum, as about 49% of manufacturers improved encrypted traffic inspection without increasing latency, addressing enterprise scalability concerns.

• Vendors focused on usability improvements, with approximately 47% of NGFW updates introducing simplified configuration tools to reduce operational complexity for IT teams.

Report Coverage

This report provides comprehensive coverage of the Next-Generation Firewall (NGFW) market, analyzing key market dynamics, segmentation, regional outlook, competitive landscape, and technological trends. The study includes a detailed SWOT analysis to assess market strengths, weaknesses, opportunities, and threats. Strength analysis highlights that nearly 72% of enterprises recognize NGFWs as essential for modern cybersecurity due to advanced threat detection capabilities. Weakness analysis identifies operational complexity as a concern, with about 46% of organizations reporting challenges in policy management. Opportunity assessment reveals that approximately 61% of enterprises plan to adopt cloud-native and identity-aware NGFW solutions, creating strong future demand. Threat analysis shows that around 43% of organizations face risks related to skill shortages and misconfigurations. The report also evaluates adoption trends across key industries and regions, representing 100% of global market activity. Competitive profiling covers leading vendors and emerging players, accounting for over 85% of total market presence. Overall, the report offers strategic insights to help stakeholders make informed decisions in the evolving NGFW market.