Distributed Denial of Service (DDoS) Protection Market

Market Overview

The global distributed denial of service (DDoS) protection market size was valued at USD 2.21 billion in 2022. It is estimated to reach USD 9.80 billion by 2031, growing at a CAGR of 18.01% during the forecast period (2023–2031). With the rising digitization, there has been a growth in the Internet of Things (IoT) and connected devices. This increase leads to surging DDoS attacks worldwide, thus boosting the market growth. In addition, the cost-effectiveness of cloud-based solutions has led to a surge in their adoption across various enterprises. This makes the enterprise susceptible to DDoS attacks, again boosting market growth.

A distributed denial-of-service (DDoS) attack occurs when several machines collaborate to attack a single target to constrain traffic through a targeted server, service, or network by saturating the target or its surrounding infrastructure with an influx of Internet traffic. DDoS increases the attack's potency by enabling the victim to receive exponentially more requests. Pinpointing the attack's real origin makes attribution more challenging because it is more challenging.

DDoS attacks may devastate an online business, so it's crucial to understand how they operate and how to prevent them effectively. There are several critical characteristics that businesses should take into account to mitigate DDoS assaults, ensure service uptime, and reduce false positives to prevent DDoS attacks. The key to stopping DDoS attacks is to use behavioral-based solutions, comprehend the benefits and drawbacks of various DDoS deployment alternatives, and neutralize various DDoS attack pathways.

Market Dynamics

Global Distributed Denial of Service (DDoS) Protection Market Drivers:

Increasing Instances of Sophisticated DDoS Attacks 

Present DDoS attacks are increasingly becoming more impactful and sophisticated than before. They have affected service and cloud providers, communications networks, digital enterprises, governments, and private networks. For instance, in November 2021, Telnyx was targeted with a DDoS attack, causing all telephony services to fail or be delayed. In addition, the total number of DDoS attacks in Q4 2021 was 52% higher than in Q3 2021, four and a half times greater than last year. This has prompted organizations to deploy more effective DDoS solutions to protect their endpoints and networks from potential attacks, thereby driving market expansion.

Introduction of Cost-effective Cloud-based and Hybrid Solutions 

The growing realization among companies about the importance of saving money and resources by adopting cloud solutions rather than building and maintaining on-premise infrastructure is boosting the demand for cloud-based solutions, hence the adoption of DDoS solutions. Owing to the surging demand for cloud-based solutions, market players have been providing these solutions with multiple functionalities. For example, Kona DDoS Defender is the cloud-based solution Akamai provides to stop the threat of a DDoS attack. The solution combines the uninterrupted service of a security operations center with the company's intelligent platform, allowing for increased scalability and ensuring the website's continued operation during an attack.

Global Distributed Denial of Service (DDoS) Protection Market Restraint:

Growing Complexity from Digital Transformation Efforts

The growing adoption of digital transformation makes both network and security increasingly complex. As a result, the increased complexity ratchets up vulnerabilities, leading to more frequent data breach incidents and a higher average cost per breach. One of the drivers behind complexity is the proliferation of isolated point security products. Other drivers include the increasing demands of maintaining compliance with privacy laws and industry regulations. All these factors hinder the market growth.

Global Distributed Denial of Service (DDoS) Protection Market Opportunities:

Proliferation of Technology and Adoption of IoT across Various Verticals 

Millions of IoT devices have significantly increased the network's surface area, thereby increasing the number of potential attack vectors. The presence of a solitary device lacking adequate protection that is connected to a network can serve as a potential entry point for an active attack. In the past few years, DDoS attacks in IoT networks have been considered a rising challenge that needs to be addressed. Moreover, introducing 5G is also anticipated to expand DDoS attacks.

Furthermore, security researchers working in Palo Alto Networks discovered another Mirai malware variant targeting new IoT vulnerabilities. Researchers from Unit 42, the cybersecurity division of the company, discovered several attacks in February 2021 that leveraged vulnerabilities. In this case, the compromised devices downloaded Mirai malware binaries, which adds them to a larger IoT botnet capable of carrying out network attacks on devastating scales. Such vulnerabilities are expected to create opportunities for the DDoS protection market.

Regional Analysis

Based on region, the global distributed denial of service (DDoS) protection market is bifurcated into North America, Europe, Asia-Pacific, and the Rest of the World.

North America Dominates the Global Market

North America is the most significant global distributed denial of service (DDoS) protection market shareholder and is anticipated to exhibit a CAGR of 16.65% during the forecast period. North America is anticipated to hold a substantial market share, primarily due to its increased adoption of advanced technologies and stringent implementation of cybersecurity solutions. Due to the need to meet stringent regulatory and compliance requirements, there is a soaring demand for advanced security systems in the region's end-user sectors, positively influencing the market's growth. The region is also home to many DDoS attacks, likely to surge across various end-user industries, driving the demand for DDoS protection solutions even further. For instance, Atlas VPN projected more than 175,000 DDoS attacks in the U.S. in March 2020 alone. They are reaching high numbers, primarily because of the region's rapidly growing number of connected devices. According to the White House Council of Economic Advisers, the US economy loses between USD 57 billion and USD 109 billion annually due to malicious cyber activity. All these factors drive the regional market growth.

Asia-Pacific is estimated to exhibit a CAGR of 19.89% over the forecast period. Distributed denial of service (DDoS) protection solutions continue to gain significant traction among organizations in the Asia-Pacific region, experiencing strong growth. The increasing number of connected devices and the adoption of IoT technologies across different regional industries are also expected to fuel the growth of DDoS protection solutions over the forecast period. For instance, according to Cisco's VNI report, which states that by 2022, the region is anticipated to witness 2.6 billion internet users (62% of the population), rising from 1.7 billion (41% of the population) in 2017, along with 13.1 billion networked devices and connections by 2022, up from 8.6 billion in 2017. In addition, various players are expanding their regional presence, resulting in a massive demand for these solutions. For instance, in January 2021, Link11, Europe's prominent IT security provider in cyber resilience, announced that it had completed the acquisition of DOSarrest Internet Security Ltd to accelerate its market expansion.

The European region is susceptible to data breaches and has various regulations. Moreover, increasing instances of data breaches in the region are propelling the players to adopt security solutions, such as DDoS protection, to mitigate such instances. The presence of an ecosystem that is conducive to digitized business transactions, with the BFSI, healthcare, media and entertainment, government, and e-retail segments being significantly digitized, and with consumers being able to access every information on their fingertips through their smartphones, laptops, has made the market prominent for DDoS protection solutions. Similarly, in September 2020, Corero Network Security PLC, a prominent provider of real-time, high-performance Distributed Denial-of-Service (DDoS) defense solutions, announced that it was granted a three-year agreement through its collaboration with Juniper Networks to provide real-time DDoS protection for a prominent European telecom operator. Such partnerships are expected to boost market growth in the region.

The rest of the world region in the market studied primarily consists of Latin America and the Middle East and Africa region. The rising digital penetration, augmented by internet usage and mobile growth in the region, is pushing the demand for robust security solutions. According to Atlantico, the technology penetration percentage of the GDP has been rapidly growing at 65% yearly. Moreover, the region's adoption of technologies, such as IoT, in multiple sectors is increasing. The government's increasing internet connectivity initiatives have attracted investments in telecom infrastructure. For instance, Telecom Argentina, an Argentine telecommunications provider, announced to invest USD 5 billion through 2020 to enhance infrastructure in the country. Such instances are expected to open new attack possibilities, propelling the enterprise to look for robust protection solutions, such as DDoS protection.

Segmental Analysis

The global distributed denial of service (DDoS) protection market is segmented by component deployment type, size of enterprise, and end-user industry.

Based on components, the global distributed denial of service (DDoS) protection market is divided into solution and service. 

The solution segment owns the highest market share and is estimated to grow at a CAGR of 17.23% during the forecast period. Advancements in social engineering and malware powered by machine learning make it challenging to identify threats as they are delivered and complicate the maintenance of threat data as it constantly changes. However, new solutions are emerging to combat these new threats. The DDoS protection solution makes it easy to identify when several alerts across various tools point at the same incident. Alerts triggered by the same event can be grouped into individual cases. Therefore, rather than requiring IT operators to allocate their time towards handling 20,000 individual notifications weekly, they can redirect their efforts towards investigating a reduced number of 2,500 incidents. This shift is facilitated by utilizing the organization's security orchestration software, which automates many investigative tasks.

Based on deployment type, the global distributed denial of service (DDoS) protection market is segmented into cloud, on-premise, and hybrid. 

The cloud segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 20.03% throughout the forecast period. Organizations are adopting cloud technologies for benefits like flexibility and cost savings. With increased demand to provide applications or services with a minimal budget, migration to the cloud continues. Enterprises are increasingly adopting cloud technologies and hosting their apps in cloud environments. As more businesses rely on cloud-based services, DDoS protection solution providers adopt cloud deployment.

Cloud DDoS mitigation and protection take place completely separately from the user's existing network within the internet cloud, detecting and preventing DDoS attacks before they even reach the user's network. Cloud DDoS mitigation and protection can be rapid to deploy, and they are effective at managing the threat of DDoS attacks designed to flood servers or pipes with a simple weight of traffic. They can also help mitigate the application layer and more advanced attack campaigns, which might involve months of disruption.

Based on the size of the enterprise, the global distributed denial of service (DDoS) protection market is bifurcated into small and medium enterprises and large enterprises. 

The small and medium enterprises segment dominates the global market and is projected to exhibit a CAGR of 19.97% over the forecast period. Small and medium enterprises, or SMEs, are the companies that generate revenues of less than USD 1 billion. These are considered in the market scope. SMEs play an imperative role in the growth of GDP for any country. According to the Office of Advocacy of the US Small Business Administration, small enterprises increased from 30.7 million in 2019 to 31.7 million in 2020, or by 3.15%. Small business expansion was 7.09 percent annually between 2017 and 2020. This shows the increasing need for DDoS protection solutions in the SME sector.

In addition, SMEs are majorly inclined toward cloud-based DDoS protection solutions that are available with lower investments and are cost-friendly. As SMEs do not allocate too much funds for IT infrastructure, they seek solutions that can be hosted over the cloud and provide the same security and transparency as on-premise DDoS solutions.

Based on the end-user industry, the global distributed denial of service (DDoS) protection market is bifurcated into government and defense, IT and telecommunication, retail, healthcare, BFSI, media and entertainment, and other end-user industries. 

The BFSI segment owns the highest market share and is projected to exhibit a CAGR of 17.02% over the forecast period. Due to the sector's vast customer base and the financial information at stake, the BFSI industry is one of the critical infrastructure sectors susceptible to multiple data breaches and cyberattacks. Cybercriminals are optimizing many malicious cyberattacks to immobilize the financial sector because it is a highly lucrative operation model with phenomenal returns and the added benefit of relatively low risk and detectability. The digitization trend is inevitable in the post-pandemic situation.

Several banks witnessed rapid digitization across the entire system shortly after the sudden onset of the COVID-19 pandemic and the following global lockdown. Improved customer reach, operational resilience, and cost-saving set to speed up the digitization drive in the BFSI ecosystem. This generates an opportunity for market players to provide their DDOS solutions to BFSI companies adopting digitization.

Recent Developments

• September 2023-Corero Network Security, a provider of DDoS protection solutions, and Akamai Technologies, Inc., a cloud company that powers and protects life online, entered into a global collaboration agreement. Akamai is now providing Corero on-premises DDoS protection to extend Akamai Prolexic, Akamai's comprehensive portfolio of DDoS security solutions.
• September 2023- NETSCOUT SYSTEMS, INC., a leading supplier of performance management, cybersecurity, and DDoS attack protection solutions, introduced Adaptive DDoS Protection for its Arbor® Threat Mitigation System (TMS) to significantly improve the detection of distributed attacks that dynamically change vectors and target multiple destination IP addresses simultaneously.