Security appliances provide a range of network security functionalities, such as firewall protection, antivirus scanning, intrusion prevention, encryption, and authentication. They are specifically engineered to protect networks from cyber threats, malicious software, and unwanted access. Security appliances can be deployed in different formats, including physical hardware, software programs, or virtual instances, to meet users' needs and preferences.
The widespread presence of connected devices, vast amounts of data, and numerous apps significantly raises the probability of cyberattacks and unauthorized access to data. Check Point Research (CPR) reported a 38% increase in worldwide cyberattacks in 2022 than 2021. According to Security Magazine, over 2,200 attacks happen daily, which means a concerning frequency of almost one cyberattack occurring every 39 seconds. Moreover, as per a survey by Cybersecurity Ventures, the estimated global cost of cybercrime is anticipated to rise to USD 10.5 trillion annually by 2025, a substantial increase from USD 3 trillion in 2015.
Organizations should allocate resources to network security solutions that protect against unauthorized access, malware, denial-of-service attacks, and other malicious activities to prevent and minimize these risks. Security appliances offer a cost-effective and efficient method for deploying network security services, as they can be easily installed, configured, and managed. They also provide outstanding performance, scalability, and reliability, as they are solely dedicated to security operations and do not allocate resources to other programs. The factors above drive the global market for security appliances.
Next-generation security appliances can help customers handle the increasing complexity and diversity of cyber threats while simultaneously addressing the growing demand for network performance and efficiency. This offers an opportunity for leading market participants to innovate cutting-edge security appliance solutions. For instance, in July 2020, Palo Alto Networks introduced the world's first-ever ML-Powered Next-Generation Firewall (NGFW). This firewall utilizes machine learning (ML) as a fundamental component to proactively thwart threats, protect IoT devices, and offer guidance on security rules. This innovation sets a new standard for network security.
North America is the most significant global security appliances market shareholder and is expected to expand substantially during the forecast period. North America leads in the adoption, innovation, and development of technology. The North American market for network security solutions is broad and well-established, primarily due to the region's substantial vulnerability to heightened levels of cyber threats and attacks. As per the data from the Identity Theft Resource Center (ITRC), there has been a gradual increase in the average number of breaches in the United States in recent years. The United States experienced an upward trend in data breaches, escalating from 1,506 breaches in 2017 to 1,826 breaches in 2021.
Moreover, according to IBM, the United States maintains its position as the country with the highest cost of data breaches for the 12th year in 2023, with an estimated cost of USD 5.09 million. The rise in cybersecurity threats is expected to drive the expansion of the security appliances market in North America.
The key players in the global security appliances market are Bosch Sicherheitssysteme GmbH (Robert Bosch GmbH), Cisco Systems Inc., Fortinet Inc., Check Point Software Technologies, Hewlett Packard Enterprise Company, Intel Corporation, Juniper Networks Inc., Honeywell International Inc., Symantec Corporation, NortonLifeLock Inc., Palo Alto Networks Inc., Trend Micro Inc, and others.