Edge Security Market by Offering (Solution, Services), Deployment Mode, Organization Size, Sector (IT & Telecommunications, Healthcare, Retail & E-Commerce, BFSI, Government, Energy & Utilities), and Geography - Global Forecast to 2031.

Edge Security Market Size & Forecast

The Edge Security Market is expected to reach $82.4 billion by 2031, at a CAGR of 19.7% from 2024 to 2031. The growth of this market can be attributed to several factors, increasing adoption of secure access service edge (SASE) to reduce IT costs and complexities and rising security concerns and risk of cyberattacks. Moreover, the increasing use of 5G technology to enhance communications infrastructure and the rising adoption of cloud-based services among SMEs are expected to offer growth opportunities for the players operating in this market.

Edge Security Market Growth Drivers

Increasing Adoption of Secure Access Service Edge (SASE) to Reduce its Costs and Complexities Accelerating Market Growth

Secure Access Service Edge (SASE) is a network architecture that combines VPN and SD-WAN capabilities with cloud-native security functions such as secure web gateways, cloud access security brokers, firewalls, and zero-trust network access. With the digital transformation of businesses, security is moving to the cloud, which is driving the need for converged services to reduce complexity, improve speed and agility, enable multi-cloud networking, and secure the new SD-WAN-enabled architecture.

The adoption of Secure Access Service Edge (SASE) has been on the rise due to its potential to reduce IT costs and complexity. SASE combines network and security functions into a cloud-based service, providing a more streamlined and cost-effective approach to managing IT infrastructure. This approach reduces the need for on-premises hardware, simplifies network management, and enhances security, making it an attractive option for organizations looking to optimize their IT resources. Several businesses are implementing SASE solutions in their network to reduce complexity and improve visibility across IT networks. Market players are focused on collaborations for developing advanced solutions. For instance, in April 2023, Accenture plc (Ireland) collaborated with Palo Alto Networks, Inc. (U.S.) to deliver a joint Secure Access Service Edge (SASE) solution powered by Palo Alto Networks. The solution—AI-powered Prisma SASE enables organizations to improve their cyber resilience and accelerate business transformation efforts. This solution reduces complexity and improves visibility across IT networks. Such developments are also expected to support the growth of this market during the forecast period.

Click here to: Get Free Sample Pages of this Report

Rising Security Concerns and Risk of Cyberattacks Driving the Need for Edge Security Solutions

Growing digitalization and the rising use of advanced technologies such as IoT and cloud computing are increasing security concerns and the risk of cyberattacks across industries. In recent years, businesses have increased their reliance on SaaS platforms to support a variety of working environments across different geographic locations. With SaaS platforms, organizations can implement remote work, digital collaborations, or multiple field offices. However, cybersecurity is an ongoing concern for organizations, especially with the increasing frequency and sophistication of cyberattacks and organizations’ heavy reliance on software for business functions.

To overcome such risks, several organizations are implementing edge security solutions that protect the network perimeter and endpoints at the edge of a network. Edge security solutions protect organizations against cyber threats by fortifying the network perimeter and safeguarding the devices and data at the edge of the network. Thus, growing security concerns and the risk of cyberattacks are increasing the demand for edge security solutions across industries.

Edge Security Market Trends

Surging Adoption of Artificial Intelligence (AI) Across Industries

Artificial Intelligence (AI) helps organizations operating across various industries to automate routine tasks, streamline processes, and reduce human error. Artificial intelligence technology helps enterprises drive innovation, cut costs, and gain a competitive advantage. AI is used across various sectors, such as healthcare, finance, and manufacturing. In the finance sector, AI is used for fraud detection, algorithmic trading, and risk management. Several financial businesses are implementing AI technology in their operations to enhance financial services. For instance, in December 2022, Deutsche Bank AG (Germany) partnered with Nvidia Corporation (U.S.) to embed AI into financial services. The company improved risk management, boosted efficiency, and enhanced its customer service using NVIDIA’s AI Enterprise software. Thus, the growing adoption of AI technologies is expected to increase the demand for edge security solutions across industries in the coming years.

Edge Security Market Opportunity

Rising Adoption of Cloud-based Services Among SMEs Expected to Generate Opportunities for Market Stakeholders

The adoption of cloud-based services is rising among Small & Medium-sized Enterprises (SMEs) as these services allow them to store and access data, applications, and resources over the Internet rather than depending on physical servers or computers. Cloud services offer cost-effective solutions, scalability, and flexibility for SMEs. Cloud-based services provide access to advanced technologies, such as data analytics and AI. These benefits provide SMEs with a competitive edge and improve operational efficiency. Additionally, cloud technologies offer remote accessibility, which is becoming increasingly important for today's globalized and remote work environments. However, SMEs need to consider data security and compliance when adopting cloud solutions and services to ensure that their sensitive information remains protected. Thus, the increasing adoption of cloud-based services among SMEs is expected to generate growth opportunities for market stakeholders.

Edge Security Market Analysis: Key Findings

By Offering: In 2024, the Solutions Segment to Dominate the Edge Security Market

In 2024, the solutions segment is expected to account for the largest share of 50.3% of the global edge security market. The segment’s large share is attributed to the increasing adoption of edge security solutions to monitor network activity for suspicious behavior, prevent cyberattacks, and deliver applications to users with greater security and the growing need to secure data in transit and prevent unauthorized access.

However, the services segment is expected to grow at the highest CAGR during the forecast period of 2024–2031. The growth of this segment is driven by the rising demand for comprehensive security across enterprise systems, the growing adoption of managed security services among small & medium-sized enterprises, and the increasing demand for security auditing, network security assessment, and firewall assessment services.

By Deployment Mode: In 2024, the Cloud-based Deployments Segment to Dominate the Edge Security Market

In 2024, the cloud-based deployments segment is expected to account for the larger share of 64.4% of the global edge security market. Th segment’s large market share is attributed to the increasing adoption of cloud-based solutions among small & medium-sized enterprises and the growing utilization of edge security services to safeguard edge networks against cyberattacks. Also, this segment is expected to register a higher CAGR of during the forecast period of 2024–2031.

By Sector: In 2024, the IT & Telecommunications Segment to Dominate the Edge Security Market

In 2024, the IT & telecommunications segment is expected to account for the largest share of 26.7% of the global edge security market. The segment’s large market share is attributed to IT & telecom companies’ increasing need to protect networks, data, and devices at the edge, the growing utilization of 5G networks, and the rising need to reduce complexities and improve visibility across IT networks.

However, the healthcare segment is expected to grow at the highest CAGR during the forecast period of 2024–2031. The growth of this segment is driven by healthcare organizations’ growing need to protect patient data, maintain regulatory compliance, and secure IoT devices and the increasing adoption of telehealth services.

Geographical Analysis

In 2024, North America Region to Dominate the Edge Security Market

In 2024, North America is expected to account for the largest share of 33.3% of the global edge security market. North America edge security market is estimated to be worth USD 8.02 billion in 2024. North America’s large market share is attributed to the presence of prominent players offering advanced edge security solutions. Furthermore, the increasing investment in edge data centers, the growing adoption of edge security solutions to improve the security of data stored in the cloud, and the rising adoption of advanced technologies such as cloud computing, AI, and IoT are supporting the market growth.

However, the Asia-Pacific region is expected to register the highest CAGR during the forecast period due to the surging demand for edge security solutions due to the increasing number of connected devices in the region, the growing need to deploy edge security solutions to ensure data, network, and device security, and government initiatives to ensure the highest level of edge security for the region’s industrial sector.

Edge Security Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the edge security market are Cisco Systems, Inc. (U.S.), Broadcom Inc. (U.S.), Check Point Software Technologies Ltd. (Israel), Palo Alto Networks, Inc. (U.S.), Fortinet, Inc. (U.S.), Juniper Networks, Inc. (U.S.), Zscaler, Inc. (U.S.), Cloudflare, Inc. (U.S.), F5, Inc. (U.S.), Akamai Technologies, Inc. (U.S.), Barracuda Networks, Inc. (U.S.), Forcepoint LLC (U.S.), Versa Networks, Inc. (U.S.), Cato Networks Ltd. (Israel), and Skyhigh Security (U.S.).

Edge Security Industry Overview: Latest Developments from Key Industry Players

• In August 2023, Check Point Software Technologies Ltd. (Israel) signed an agreement to acquire Perimeter 81 Ltd. (Israel), a Security Service Edge (SSE) company. With this acquisition, Check Point will help organizations accelerate the adoption of secure access across remote users, sites, cloud, data centers, and the internet to deliver the most secure and fastest SSE solution in the market.

• In June 2023, Palo Alto Networks, Inc. (U.S.) partnered with Accenture plc (Ireland) to deliver joint secure access service edge (SASE) solutions that enable organizations to improve their cybersecurity posture and accelerate business transformation initiatives.

• In June 2022, Juniper Networks, Inc. (U.S.) announced the expansion of its SASE offering with the addition of Cloud Access Security Broker (CASB) and advanced Data Loss Prevention (DLP) capabilities to its Juniper Secure Edge solution.

Edge Security Market Research Summary

Key questions answered in the edge security market report: