Microsegmentation is an emerging network security approach that involves partitioning enterprise networks into smaller sections and controlling the communication between those sections using security policies and controls. Microsegmentation allows organizations to isolate critical systems that contain sensitive data and limit the lateral movement of threats within the network. It does so by creating security zones based on logical rather than physical groups. This enhances visibility into the network for better threat detection and response while balancing safety with productivity. Microsegmentation provides granular control over east-west traffic within the network. The global microsegmentation market offers networking and security solutions that includes services, software tools, and physical appliance. Rising security breaches across enterprises due to lack of proper network segmentation is a key factor driving adoption.
The global Microsegmentation Market is estimated to be valued at US$ 2328.75 Mn in 2023 and is expected to exhibit a CAGR of 61.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increased network security concerns as highlighted in the heading is a major driver propelling the microsegmentation market growth. According to various reports, enterprises suffered huge financial losses due to downtime caused by security breaches and data theft over the past years. Microsegmentation addresses this by controlling traffic flow and restricting threat actors movement within the network even if one system gets compromised. The adoption of hybrid work culture post pandemic also drives the need for advanced network security solutions like microsegmentation to protect critical enterprise assets from external threats. Microsegmentation enhances network visibility and security posture of enterprises without major infrastructure changes, hence witnessing higher traction. Tighter regulatory compliance for data protection worldwide further stimulates demand.
Segment Analysis
The global microsegmentation market is dominated by the component sub-segment. The component sub-segment held around 60% share of the total market in 2023 owing to rising deployment of various hardware components such as sensors and controllers for effective microsegmentation in enterprises. Hardware components play a vital role in the implementation of microsegmentation solutions by dividing networks into smaller isolated segments with the help of sensors and controllers.
PEST Analysis
Political: Governments across the globe are emphasizing on implementing stringent cybersecurity regulations and standards for data privacy and protection which is positively influencing the demand for microsegmentation solutions from enterprises.
Economic: Rising IT expenditure of organizations on advanced cybersecurity solutions due to increasing frequency and sophistication of cyber threats is fueling the growth of the global microsegmentation market.
Social: Growing digitalization and usage of smart devices among consumers is generating massive volumes of data which is raising data security and privacy concerns. This is driving the need for microsegmentation among enterprises.
Technological: Advancements in technologies such as Software-defined perimeter (SDP) and Zero Trust Network Access (ZTNA) are facilitating effective network segmentation and access controls within enterprises which is propelling the microsegmentation market.
Key Takeaways
The Global Microsegmentation Market Growth is expected to witness high at a CAGR of 61% during the forecast period of 2023 to 2030.
Regional analysis: North America dominated the global microsegmentation market in 2023 and is expected to continue its dominance during the forecast period as well owing to stringent regulations for data security and extensive adoption of advanced security solutions among enterprises in the region.
Key players: Key players operating in the microsegmentation market are AutoX, Inc., Baidu, BMW AG, Daimler AG, EasyMile, Ford Motor Company, GM Cruise LLC, Hyundai, Tesla, Inc., and Waymo LLC. Among these, BMW AG held the leading share in 2023 due to its extensive research and developments in advanced driver assistance systems and autonomous vehicle technologies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it