The cloud native network security market is expected to grow at a CAGR of 15.1% during the forecast period of 2024 to 2032, driven by the rapid adoption of cloud-native architectures, the growing complexity of cloud-native environments, and the heightened focus on zero trust security principles. Despite challenges related to skill shortages and talent gaps, the market offers lucrative opportunities for vendors and service providers to capitalize on the increasing demand for advanced network security solutions tailored for cloud-native environments. With robust segmentation across deployment models, security solutions, organization sizes, verticals, deployment modes, service types, end users, and pricing models, the cloud native network security market provides diverse revenue streams and growth prospects for industry participants. Geographically, regions such as North America, Europe, and the Asia Pacific are expected to drive market growth, fueled by technological innovation, regulatory mandates, and increasing investments in cloud-native security initiatives. Competitive trends indicate intense competition among leading players, with a focus on product differentiation, strategic alliances, and innovation to maintain market leadership and address evolving customer requirements. Overall, the cloud native network security market presents significant opportunities for stakeholders to deliver value-added solutions and services that address the evolving security challenges in modern cloud environments.

Drivers of Cloud Native Network Security Market Growth

Rapid Adoption of Cloud-Native Architectures: The rapid adoption of cloud-native architectures by organizations across various industries is a key driver fueling the growth of the cloud native network security market. In 2023, organizations accelerated their migration to cloud-native environments to leverage the benefits of containerization, microservices, and DevOps practices for faster application development and deployment. This adoption trend is expected to continue growing exponentially during the forecast period of 2024 to 2032, driving the demand for advanced cloud native network security solutions. Leading cloud-native technology providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) are witnessing increased adoption of their cloud-native services, prompting organizations to invest in cloud native network security solutions to protect their cloud-native workloads.

Growing Complexity of Cloud-Native Environments: The increasing complexity of cloud-native environments poses significant security challenges for organizations, driving the need for specialized cloud native network security solutions. In 2023, the proliferation of containerized applications, microservices architectures, and serverless computing posed unique security risks, including container escape vulnerabilities, supply chain attacks, and misconfigurations. As organizations embrace cloud-native technologies to achieve agility and scalability, they recognize the importance of implementing robust security measures to mitigate these risks. Consequently, the demand for cloud native network security solutions, such as cloud native firewalls, network access control (NAC), and intrusion detection and prevention systems (IDS/IPS), is expected to surge in the forecast period as organizations prioritize securing their cloud-native workloads and data.

Heightened Focus on Zero Trust Security Principles: The growing adoption of zero trust security principles is driving organizations to implement comprehensive network security strategies tailored for cloud-native environments. Zero trust security models advocate for continuous verification and strict access controls, ensuring that only authenticated and authorized users and devices can access resources. In 2023, organizations increasingly adopted zero trust network architectures to protect against insider threats, lateral movement, and advanced persistent threats (APTs) targeting cloud-native workloads. This shift towards zero trust security paradigms is expected to drive the demand for cloud native network security solutions that offer granular access controls, microsegmentation, and threat detection capabilities, contributing to market growth during the forecast period.

Restraint

Despite the significant growth opportunities, the cloud native network security market faces challenges related to skill shortages and talent gaps in cloud-native security expertise. In 2023, organizations struggled to recruit and retain qualified cybersecurity professionals with expertise in cloud-native security architectures, container security, and Kubernetes orchestration. The complexity of cloud-native environments and the rapid pace of technological innovation require specialized skills and knowledge, creating a shortage of skilled professionals capable of designing, implementing, and managing cloud native network security solutions effectively. This talent gap poses a significant restraint on market growth, hindering organizations' ability to secure their cloud-native workloads and infrastructure effectively.

Market Segmentation Analysis

Market by Deployment Model

In 2023, the hybrid cloud deployment model emerged as the highest revenue-generating segment within the cloud native network security market. Hybrid cloud environments, consisting of a mix of on-premises infrastructure and public cloud services, are increasingly adopted by organizations seeking to leverage the benefits of both environments while addressing specific security, compliance, and performance requirements. Additionally, the hybrid cloud deployment model exhibited the highest compound annual growth rate (CAGR) during the forecast period of 2024 to 2032, driven by the growing adoption of hybrid cloud strategies and the need for consistent security controls across hybrid environments.

Market by Security Solution

Among the various security solutions, the cloud native firewall segment generated the highest revenue in 2023, reflecting organizations' prioritization of network security within cloud-native environments. Cloud native firewalls provide advanced threat detection and prevention capabilities tailored for containerized workloads and microservices architectures, enabling organizations to enforce granular access controls and protect against network-based attacks. Meanwhile, the cloud DDoS protection segment is expected to experience the highest CAGR during the forecast period, driven by the increasing frequency and sophistication of distributed denial-of-service (DDoS) attacks targeting cloud-native applications and infrastructure.

Market by Organization Size

Large enterprises accounted for the highest revenue in the cloud native network security market in 2023, driven by their substantial IT budgets and complex cloud-native environments. Large enterprises prioritize comprehensive network security solutions to protect their cloud-native workloads, applications, and data assets from cyber threats and data breaches. Conversely, small and medium enterprises (SMEs) are expected to exhibit the highest CAGR during the forecast period, as they increasingly adopt cloud-native technologies to innovate and compete effectively, driving the demand for cost-effective and scalable network securitysolutions tailored for their cloud-native environments.

Market by Vertical

In 2023, the BFSI (Banking, Financial Services, and Insurance) sector emerged as the highest revenue-generating vertical in the cloud native network security market. The BFSI industry handles vast amounts of sensitive financial data, making it a prime target for cyber threats and regulatory scrutiny. Consequently, BFSI organizations prioritize investments in cloud native network security solutions to protect customer data, maintain regulatory compliance, and safeguard their reputation. Meanwhile, the healthcare sector is expected to exhibit the highest CAGR during the forecast period, driven by the increasing digitization of healthcare data and stringent regulatory requirements governing patient privacy and data security.

Market by Deployment Mode

Both agent-based deployment and agentless deployment models contributed significantly to the cloud native network security market in 2023. While agent-based deployments offer granular visibility and control over cloud-native workloads by deploying security agents directly onto host machines or containers, agentless deployments provide lightweight and scalable security solutions without requiring additional software installations. The hybrid deployment model, combining both agent-based and agentless approaches, gained traction among organizations seeking flexible and adaptable network security solutions for their diverse cloud-native environments.

Market by Service Type

Professional services, including consulting, integration, and support, represented the highest revenue-generating segment in the cloud native network security market in 2023. Organizations relied on professional services providers to assess their security posture, design tailored network security architectures, and implement and maintain cloud native network security solutions effectively. Managed services, offering ongoing monitoring, threat detection, and incident response capabilities, are expected to witness the highest CAGR during the forecast period, driven by the growing demand for outsourced security operations and expertise in managing complex cloud-native security environments.

Market by End User

Enterprises constituted the largest revenue contributor in the cloud native network security market in 2023, as large organizations across industries invested heavily in comprehensive network security solutions to protect their cloud-native workloads and data assets. However, managed security service providers (MSSPs) are projected to experience the highest CAGR during the forecast period, driven by the increasing demand for outsourced security services among small and medium-sized enterprises seeking cost-effective and scalable network security solutions tailored for their cloud-native environments.

Market by Pricing Model

Subscription-based pricing models dominated the cloud native network security market in 2023, offering organizations predictable costs and flexibility in scaling their network security solutions based on usage and demand. Subscription-based models enable organizations to align their expenses with their operational needs while benefiting from regular updates and support from security vendors. Meanwhile, pay-per-use pricing models, offering consumption-based billing for network security services, are expected to gain traction during the forecast period, particularly among organizations with fluctuating workloads and dynamic cloud-native environments.

North America Remains the Global Leader

North America emerged as the dominant region in the cloud native network security market in 2023, attributed to the region's strong cybersecurity infrastructure, technological innovation, and early adoption of cloud-native architectures. However, the Asia Pacific region is expected to exhibit the highest CAGR during the forecast period, driven by rapid digital transformation initiatives, increasing investments in cloud infrastructure, and growing awareness of cloud-native security best practices among organizations. Additionally, Europe is projected to maintain a significant revenue share in the cloud native network security market, driven by stringent data protection regulations and the widespread adoption of cloud-native technologies across European enterprises.

Market Competition to Intensify during the Forecast Period

Top players in the cloud native network security market include Palo Alto Networks, Cisco Systems, Fortinet, Check Point Software Technologies, Juniper Networks, IBM Corporation, Intel Corporation, Trend Micro Inc., Amazon Web Services, Microsoft Corp., Fortinet Inc., Sangfor Technologies Inc., Mcafee, and Huawei Technologies Co. Ltd. These companies leverage their extensive expertise in network security and cloud-native technologies to develop and offer innovative cloud native network security solutions tailored for modern cloud environments. Key strategies employed by these players include product innovation, strategic partnerships and collaborations, acquisitions, and investments in research and development to address evolving security threats and meet the diverse needs of customers. Revenues for these market leaders in 2023 indicate strong market positions, with further growth expected during the forecast period as organizations continue to prioritize cloud-native security initiatives and invest in advanced network security solutions.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Cloud Native Network Security market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Cloud Native Network Security market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Cloud Native Network Security market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Cloud Native Network Security market?
• Which is the largest regional market for Cloud Native Network Security market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Cloud Native Network Security market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Cloud Native Network Security market worldwide?