Secure Web Gateway Market

The global secure web gateway market size was USD 9 Billion in 2022 and is likely to reach USD 27 Billion by 2031, expanding at a CAGR of 19.5% during 2023–2031. The market growth is attributed to the high demand for end-to-end security solutions and the rising number of sophisticated cyber-attacks.

Increasing digitization of organizations and the use of connected technologies in their operations has led to a rapid increase in cybersecurity incidents across the globe. Technological advancement has amplified the number of connected devices. These devices' software and data on them require to be protected all the time as cybercriminals are constantly coming up with innovative attacks such as spear phishing and spoofs. This is fueling the demand for secure web gateway solutions.

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The most important feature to be examined for a secure web gateway (SWG) solution is security. Real-time detection beyond file signatures is a significant differentiating factor. Vendors can request cloud infrastructure that continuously analyzes traffic from different geographic regions through sensors. They can provide better protection against unknown and new forms of malware by rapidly updating virus definition databases and URL databases for all customers in real time.

• The European Union Agency for Cybersecurity analyzed a total of 623 ransomware incidents across the European Union, the UK, and the US from May 2021 to June 2022. The study found that around 1- terabyte of data is stolen each month by ransomware threat actors and 58.2% of data is stolen including employees' data.

The market report finds that the COVID-19 pandemic fueled the secure web gateway market, as SWG continuously helped organizations to identify and mitigate emerging cyber threats more effectively. The pandemic has led to a spur in the adoption of cloud infrastructure and digital services & solutions. However, an increase in cyberattack activities has also led to an increase in security budgets.

Artificial Intelligence Impact on Secure Web Gateway Market

Artificial intelligence (AI) is expected to boost the secure web gateway market in the coming years. AI algorithms efficiently examine the traffic data to identify the patterns and anomalies indicating an attempted intrusion or attack. SWG removes web-based risks before they arrive at the network. User access to unwanted or malicious websites that are easily blocked, protecting them from risks. Blocking unwanted and malicious content is simplified with the help of AI-based technology on-site content. The real time safety enabled by AI is projected to increase its adoption in SWG solutions.

Secure Web Gateway Market Dynamics

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Major Drivers

Increasing demand for end-to-end security solutions across sectors is expected to drive the secure web gateway market. Secure web gateway (SWG) is an end-to-end secure web with advanced malware protection, URL filtering, and data loss prevention including remote browser isolation to protect users from Internet-borne threats and support enterprises enforcing Internet policy compliance. Most significantly, Transport Layer Security (TLS) is evolving as a priority over older versions of the Secure Sockets Layer (SSL) protocol. SWG delivers deep SSL inspection including the latest TLS 1.3 protocol without compromising on performance.

• According to the Ponemon Institute study report 2020, approximately 68% of respondents report that their company suffered one or more endpoint attacks that led to the successful compromise of data assets and IT infrastructure in the last 12 months, a rise from 54% of respondents in 2017.

Existing Restraints

Availability of simpler and alternative products is expected to hamper the secure web gateway market. Unlike traditional firewalls, a secure web gateway includes 7-level traffic inspection. URL filtering, malware code detection, data leak prevention, and application-level control are the major key features of a SWG, while a traditional firewall offers essential security by blocking and notifying users of malicious tries to connect. It allows users to create a set of rules to control which programs cannot access the Local Area Network (LAN) and the internet and to notify users when a doubtful application tries to attempt a connection.

Emerging Opportunities

Increasing product innovations is expected to create lucrative opportunities for the market players. Major companies operating in the secure web gateway are developing technologically advanced solutions to strengthen their position in the market. Several governments are supporting innovation in SWG with investment, due to the increasing incidences of data leakage activities in several countries and companies. Companies in the market are set to benefit from AI advancements to improve SWG solutions, thereby, further propelling their adoption. Furthermore, the growing adoption of cloud secure web gateway (cloud SWG) is likely to increase opportunities in the market.

• In June 2023, Absolute Software Corporation announced the expansion of its differentiated Security Service Edge (SSE) solution with the launch of the Absolute Secure Web Gateway Service. Optimized for mobile and hybrid work models, this newly expanded solution builds on existing abilities available in Complete Secure Access, including Absolute Insights for Networks and Absolute ZTNA, and enables organizations to strengthen security, increase productivity, and align internal IT and security policies.

Scope of Secure Web Gateway Market Report

The market report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Secure Web Gateway Market Segment Insights

Component Segment Analysis

Based on component, the secure web gateway market is divided into solutions and services. The solutions segment is further classified into access control, incident management, threat protection, email security, and data protection. The services segment is further divided into support, consulting, training, and managed.

The solutions segment is expected to expand at a significant pace during the projection period, as it offers the best-layered security protection to prevent data loss & guarantee encrypted traffic. Threat prevention includes a sandbox, Domain Name System (DNS), advanced security, and antivirus. Sandboxes are used to securely implement suspicious code, without damaging the host device or network. They offer zero-day security that is accessible to all users on or off the network.

DNS protection provides authentication for the origin of DNS data, helps defend against cyber attacks, and protects data integrity. It directs cautious C2 connections to SWG solution workers for inspection. Advanced protection facilitates real-time security from malicious content on the internet. Antivirus provides complete malware protection derived from several threat feeds.

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Deployment Mode Segment Analysis

On the basis of deployment mode, the global market is segregated into cloud, on-premise, and hybrid. The cloud segment is projected to register a considerable CAGR during the forecast period, owing to the increasing concerns about data security and privacy. Organizations secure Internet access for remote and on-site users by installing security tools such as web gateways within the data center.

Cloud-based secure web gateways support organizations to achieve greater security while reducing complexity and avoiding the need for multiple devices and backhauling. With cloud-based secure gateways, organizations can reduce bottlenecks, reduce complexity, improve efficiency, eliminate backhauling, and manage policies consistently.

• In March 2021, Menlo Security, a leading cloud security solution provider launched an industry first by expanding its cloud-based SWG to include web isolation for smartphones. This new offering is planned to remove the threat of phishing and malware attacks when users are examining the email and internet from their tablets and smartphones.

Organization Size Segment Analysis

Based on organization size, the secure web gateway market is segmented into small & medium enterprises and large enterprises. The large enterprises segment is expected to register a robust growth rate during the forecast period, as it provides end-to-end web safety and implements the same level of protection to applications. Large organizations are required to ensure the utmost security measures for their resources, as a single incidence can have a significant impact on resources and reputations.  The varying security requirements and need for real-time web security solutions propels the SWG demand from large enterprises.

Application Segment Analysis

On the basis of application, the global market is segregated into BFSI, healthcare, education, government & defense, IT & telecom, and others. The BFSI segment is expected to expand at a significant pace during the projection period, as it is used for security products and needful services to protect the company employees, offices, customers, and branches.

The BFSI sector is constantly upgrading its transaction and processing technologies and therefore, it needs end-to-end security solutions to protect operations from both external and internal threats. The vertical is constantly introducing new and improved financial products and services to upscale its business operations, which interests fraudsters to attack customers and other sensitive information. Growth of Internet banking, smart banking, and mobile banking are the major factors that have given rise to the demand for SWG solutions from the BFSI sector.

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Regional Analysis

In terms of region, the global secure web gateway market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, owing to increasing security threats and the presence of several market players in the region. Speedy economic growth, social change, and political transformation are taking place in this region with growing industrialization and digitization. Emerging countries such as India, Japan, China, and others have launched new national security policies, due to the sophistication of cyber threats.

• In May 2021, Microsoft launched the first Asia Pacific’s public sector cyber security executive council to unify policymakers from government and state agencies. It includes policymakers and influencers from South Korea, Brunei, the Philippines, Indonesia, Malaysia, Thailand, and Singapore. Reinforced by cybersecurity professionals the council helps to accelerate private and public partnerships in cybersecurity, share threat intelligence, and create a robust and coordinated comeback against cyberattacks in the Asia Pacific.

The market in North America is anticipated to expand at a rapid pace in the coming years, due to the increasing development of new technologies and rising cybercrimes. IT and networking teams are under tremendous pressure to optimize and develop more Operational Technology. Organizations are focusing on finding and deploying security-enforcing solutions across the whole IT/OT environment to lessen overall security risk.

• According to the 2023 Fortinet global report, 75% of OT organizations experienced at least one intrusion in the last year. In the next 12 months, approximately 95% of organizations expect OT cybersecurity responsibility to shift from directors and managers to CISOs.

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Segments

The global secure web gateway market has been segmented on the basis of

Component

• Solutions
  • Access Control
  • Incident Management
  • Threat Protection
  • Email Security
  • Data Protection
• Services
  • Support
  • Consulting
  • Training
  • Managed

Deployment Mode

• Cloud
• On-premise
• Hybrid

Organization Size

• Small & Medium Enterprises
• Large Enterprises

Application

• BFSI
• Healthcare
• Education
• Government & Defense
• IT & Telecom
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• ARYAKA NETWORKS, INC.
• Zscaler, Inc.
• Trend Micro Incorporated
• Thoma Bravo
• SANGFOR TECHNOLOGIES
• NortonLifeLock Inc.
• McAfee, LLC
• Francisco Partners
• Data443 & Cyren
• Comodo Security Solutions, Inc.
• Cisco Systems, Inc.
• Check Point Software Technologies Ltd.
• A10 Networks, Inc.

Competitive Landscape

Key players competing in the global secure web gateway market are ARYAKA NETWORKS, INC.; Zscaler, Inc.; Trend Micro Incorporated; Thoma Bravo; SANGFOR TECHNOLOGIES; NortonLifeLock Inc.; McAfee, LLC; Francisco Partners; Data443 & Cyren; Comodo Security Solutions, Inc.; Cisco Systems, Inc.; Check Point Software Technologies Ltd.; and A10 Networks, Inc.

These key players adopt various strategies including mergers, acquisitions, collaboration, partnerships, product launches, and production expansion to expand their consumer base globally.

• In October 2022, ARYAKA NETWORKS, INC. announced the next evolution of its Zero Trust WAN with the inclusion of a secure web gateway and firewall-as-a-service. The incorporation is the first to allow enterprises to easily enforce security policies across remote and office users with combined control while delivering unbelievable application performance and stability.