The global software-defined perimeter market is expected to grow at a CAGR of 5% over the forecast period 2021 to 2026. Cloud services are the primary drivers for the digital transformation with ubiquitous adoption in various industries. It has brought different security challenges for the business that is the crucial reason promoting the growth of the global software-defined perimeter market during the projected period.
- Cloud services provide significant opportunities to accelerate the business through rapid scalability and the flexibility of resource utilization. It also reduces operational costs as well as control financial spending on large scale upgrades as cloud computing facilitates seamless scaling at reasonable costs. According to a survey by Flexera conducted in January 2019, 84% of the respondents have a multi-cloud strategy, and enterprises with hybrid strategy grow by 58% during the year. Moreover, 94% of the respondents use the cloud. It has led to increased cases of security breaches (data breaches from connected devices standard in the workplace like mobile, laptops, and IoT devices.) and compromised the confidential data, hence fueling the demand of software-defined perimeter solutions.
- Moreover, the increased number of businesses implementing enterprise mobility solutions that enable and encourage employees to work from anywhere and through a wide range of devices. It has created work-life balance, increased employee-consumer interaction, and operational productivity by 34%. About 67% of the workforce is expected to adopt their own devices (BYOD policy) for work; this further emphasizes the need for network security for mobile and remote devices. According to the report, by 2023, 30% of IT organizations will extend their BYOD policy to cater to employee’s wearable in the workforce, which will further drive the market.
- However, lack of awareness of the critical benefits of software-defined perimeter solutions and the rise in demand for free and open source security standards can hamper the growth of the market.
Key Market Trends
BFSI Sector Will Experience Significant Growth
- Wide-scale adoption of digitalization in every sector has also touched the financial sector, and most of the banks are migrating their data, process, and infrastructure to hybrid cloud to benefit from both, on-premises, and off-premise cloud implementation.
- The rapid adoption of electronic devices and high penetration of the internet has also fuelled the growth of digital services and increased the customers’ expectations for ease of payment, 24x7 uptime, secure storage, and interoperability. It has created an opportunity to maintain a multi-channel relationship with customers at a much-reduced cost. Cloud computing has also shortened the development cycles for new products and supports a faster and more efficient response to the needs of the customers.
- However, it had led to the emergence of cybertheft across the globe and challenges customer‘s financial security and personal privacy. For instance, over 1.4 billion records were lost to data breaches in March 2017 alone, and many of them involved cloud servers. As well as cyber hackers via the SWIFT network had illegally transferred close to USD 1 billion from the Federal Reserve Bank of New York account belonging to Bangladesh Bank.
- Many financial institutions are collaborating with technology solution vendors to advance their cyber security solutions and protect sensitive data. For instance, SBI, most significant and most prominent public sector bank in India, has partnered with Trend Micro to secure its endpoints VMs and digital infrastructure, including cloud and mobility assets. The company has deployed its endpoint and server security solutions across more than 26000 branches of SBI in and outside India, covering over 275,000 endpoints along with securing 29,000 VMs (virtual machines).
North America to Hold a Significant Market Share
- The healthcare industry is experiencing a transformation with new tools and technologies to reconstruct the delivery of health services in order to improve efficiency with better patient care. Mobile health applications and wearable technologies are leveraged as practical health tools to monitor patients’ activities. For instance, smartphones are used as an adapter with electrocardiogram electrodes to transmit data to detect silent atrial fibrillation.
- Digital healthcare services provide personalized patient care at reduced costs. According to a recent HIMSS Analytics survey, over 83% of healthcare organizations are already using cloud services. Moreover, HIMSS reports that the US Department of Health and Human Services listed 412 data breaches that were under investigation in 2018, and the need for network security is crucial than ever before.
- Moreover, major players in the retail sector are embracing hybrid cloud solutions with various applications in their own data center and others in the public cloud, in order to benefit from both on-premise and off-premise cloud implementation and to create a great shopping experience. For instance, AmazonGo stores utilize a combination of computer vision, deep learning, and sensor fusion technology to automate the payment and checkout process. So that customer can directly enter the store, pick-up items and leave without queuing while the payment is made automatically through the Amazon Go app. Amazon currently hold nine Go stores in United States and plans for thousands more in 2020. So, retail sector is shifting to digitalization and requires network security in the future and paves promising road for software-defined perimeter market.
- The recent outbreak of COVID-19 across the globe is expected to have a short-term increase in demand of security software owing to the increased usage of API and other services from distributed infrastructure. This is expected to influence a significant growth in demand over the next few years as the number of enterprises adopting digital infrastructure is expected to increase.
The global software-defined perimeter market is moderately concentrated and is dominated by a few significant players like Perimeter 81, ZScaler, Cisco Systems, Inc, Okta Inc., APPGate, and Check Point. These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are growing their market presence by securing new contracts and by tapping new markets.
- April 2020 - Okta, Inc. entered strategic partnerships with leading endpoint protection and management providers VMware Carbon Black, CrowdStrike, and Tanium. The new integration partnerships provide a broad set of device risk signals to the Okta Identity Cloud, enabling enterprises to combine endpoint risk detection with user identity to deliver unparalleled access security. Made possible through the new Okta Verify application and the Okta Devices Platform Service, these integrations pave the way to enhanced risk analysis and access decisions in a Zero Trust environment.
- March 2020 - AppGate, the cybersecurity company signed a distribution agreement with Promark, a premier, the U.S focused value-added distributor. It will distribute AppGate SDP, a unique and robust software-defined perimeter solution, among its growing base of U.S. channel partners. AppGate SDP will help Promark clients replace inadequate Virtual Private Network (VPN) technology and securely address remote access and cloud migrations.
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Table of Contents
1.2 Study Assumptions
1.3 Scope of the Study
4.2 Market Drivers
4.2.1 Ongoing Migration to The Cloud, Adoption of IoT & BYOD
4.2.2 Stringent Data Compliance Requirements and Need for Scalable Data Safeguarding Strategies
4.3 Market Restraints
4.3.1 Growing Demand for Open-Source Security Standards
4.4 Value Chain / Supply Chain Analysis
4.5 Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 PESTLE Analysis
4.7 Assessment of COVID-19 Impact on the Industry
5.2 Deployment Mode
5.3 End-User Verticals
5.3.2 Telecom and IT
5.3.6 Other End-user Verticals
5.4.1 North America
5.4.4 Rest of the World
6.2 Mergers & Acquisitions
6.3 Company Profiles
6.3.1 Perimeter 81
6.3.3 Cisco Systems, Inc
6.3.4 Okta, Inc
6.3.6 Check Point
6.3.7 Broadcom (Symantec)
6.3.8 Cato Networks Limited
6.3.9 Unisys Corporation
6.3.10 Fortinent Corporation
6.3.11 Palo Alto Networks Inc.
6.3.12 Safe-T Group Limited
6.3.13 Akamai Technologies, Inc (Soha Systems)
6.3.14 Verizon Communications (Vidder)
A selection of companies mentioned in this report includes:
- Perimeter 81
- Cisco Systems, Inc
- Okta, Inc
- Check Point
- Broadcom (Symantec)
- Cato Networks Limited
- Unisys Corporation
- Fortinent Corporation
- Palo Alto Networks Inc.
- Safe-T Group Limited
- Akamai Technologies, Inc (Soha Systems)
- Verizon Communications (Vidder)