- Managed services segment is expected to grow at the highest CAGR during the forecast period as it plays a major role in the deployment of Microsegmentation software according to requirement of client
- BFSI vertical is expected to witness the highest CAGR in the forecast period as this sector needs continuous upgradation of its processing and transaction technologies
- North America dominated the Microsegmentation market share by 45% due to major presence of sustainable and well-established economies such as U.S. and Canada.
- Major players In Microsegmentation market include Bracket Computing, Cisco Systems, Cloudvisory LLC, Extrahop Networks, Guardicore, Juniper Networks, Nutanix, Opaq Networks, Shieldx Networks and Unisys Pvt Ltd.
Service – Segment Analysis
- The managed services segment is expected to grow at a CAGR of 12.5% during the forecast period as it plays a major role in the deployment of Microsegmentation software according to requirement of client and this service also play a major role in decreasing the cyber threats as Global cyber threats are increasing rapidly. For Instance according to the report given by Hiscox in 2019, almost 74% of organizations have a very novice infrastructure, while only 10% of the organization worldwide have the necessary infrastructure to deal with the cyber threats, for this deployment of managed service is one of the major solution which will drive the market in the forecast period. Rising demand for services such as planning, designing, testing, integrating, maintenance, and support which require deployment of managed services for on-time delivery, reduction of capital expenditure, operating expenses are also some of the key driving factor for managed services on Microsegmentation market.
Vertical – Segment Analysis
BFSI vertical is expected to witness the highest CAGR of 11.5% in the forecast period as this sector needs continuous upgradation of its processing and transaction technologies and requires end-to-end security solutions to optimize operations against both internal and external threats. The loop holes in the technological advancements such as smart banking, internet banking and mobile banking have attracted the cybercriminals. For Instance according to the report given by The Financial Conduct Authority (FCA) in 2018, number of cyber-attacks reported by UK financial services firms increased to 48% in 2018, from 25% in 2017. On the other hand, online transactions are increasing in rapid pace due to technological developments in many major countries. For instance, in India, online transaction increased to $1.2 billion in 2018-19, registering a growth of 51% over the previous year. Thus, this industry continuously upgrades its security infrastructure thereby creating opportunities for Microsegmentation market.
Geography – Segment Analysis
In 2018, North America dominated the Microsegmentation market share by 45% due to major presence of sustainable and well-established economies such as U.S. and Canada, who invest heavily in Research and Development (R&D) activities and contributes to the development of new technologies. The startup culture in North America is growing at a faster pace as compared to the other regions. The rising number of developing Small and Medium-sized Enterprises (SMEs) and the increasing digitization in large organizations have aided the growth of the North American Microsegmentation market. SMEs are flexible in incorporating new technologies such as Microsegmentation, artificial intelligence-driven micro-segmentation, Network Microsegmentation into their existing systems, whereas large organizations have heavy budgets for digitization. All these factors are driving the growth of the market in North America. The storage requirements of the US are boosting the demand for current data center capacity expansion, need for new virtual data centers and their security. The advanced security solutions and improved data mining functionality are expected to drive the Microsegmentation market size in this region.
Drivers – Microsegmentation Market
- Growing demand for integrated data protection and workload isolation in SMEs
Microsegmentation in SME’s create secure zones in data centers and cloud deployments and allows them to isolate workloads from one another and secure them individually as SMEs in different industry verticals do not have stringent security measures for safeguarding their data, cloud infrastructure, networks, endpoints, and applications. The demand for Microsegmentation solutions is increasing rapidly across these enterprises as the dominant delivery model need to meet IT security requirement. Thus increase in SME’s will create opportunities for Microsegmentation market in the forecast period.
The demanding requirement from consumers and regulatory bodies are bringing disruption in different industry verticals sector. In recent time, cybersecurity attacks are increasing rapidly. For instance, according to the report given by Engineering Employers Federation (EEF) in 2018, about 48% of manufacturers had suffered a cybersecurity attack and 21% of manufacturers have lost intellectual property due to cyber-attacks. Similarly, according to the report given by DNS Cyber-attacks on financial firms rise by 37% in 2018. Microsegmentation which is widely used to reduce the cyber threats will likely to get enormous demand during the forecast period.
Challenges – Microsegmentation Market
- Lack of integrated verification tools
Microsegmentation is a great approach to reducing the attack surface area and limiting damage from security breaches but a conceptual approach alone is not enough without understanding the interactions between the workloads, applying fine-grained controls using micro-segmentation can block legitimate application flows. Integrated tools which are used to correlate, visualize, and adjust security-related changes to business application flows across multiple end points does not exist. This makes it difficult to implement a micro-segmentation strategy where every workload is only accessing resources that are necessary for its legitimate purpose. All these segments will hamper the market in the forecast period.
Partnership and acquisitions are key strategies adopted by players in the Microsegmentation market. In 2018, Microsegmentation industry outlook has been moderately concentrated by the top five players accounting for 52.45% of the share. The Microsegmentation top 10 companies include Bracket Computing, Cisco Systems, Cloudvisory LLC, Extrahop Networks, Guardicore, Juniper Networks, Nutanix, Opaq Networks, Shieldx Networks and Unisys Pvt Ltd.
- In November 2019, Palo Alto Networks is acquiring Aporeto, a provider of zero trust cloud security, application identity and distributed firewall services. Aporeto’s software provides micro-segmentation security services that safeguard on-premises and public cloud applications. Palo Alto expects to close the $150 million acquisition in the company’s fiscal second quarter.
- In August 2019, Enterprise software giant VMware acquired endpoint security company Carbon Black in a move bloster its security threats and ability to detect cyber threats.