Microsegmentation is the process of virtually subdividing the network into small subsets of users, devices, or locations. It allows network administrators to enforce granular, automated policies and access controls based on organization, user, device, application, traffic type, or other parameters. Microsegmentation products are used by enterprises to reduce cybersecurity risks by restricting the interconnectedness of systems, monitoring and managing lateral movement of threats, applying firewall-like security controls, and confining breaches.
The Global Microsegmentation Market is estimated to be valued at US$ 2682.72 Bn in 2024 and is expected to exhibit a CAGR of 61% over the forecast period 2024 To 2031.
Key Takeaways
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. With increasing cyber threats, microsegmentation enables organizations to monitor internal networks closely and enhances visibility. The growing usage of Internet of Things devices coupled with increasing concerns around zero-trust architecture is fueling the demand for microsegmentation solutions globally. Major technology companies are focusing on strategic collaborations and partnerships to expand their microsegmentation business globally and gain a competitive advantage in the market.
Market key trends
The trend of connected and automated vehicles is driving the Microsegmentation Market Demand. As self-driving cars become a reality, automakers are focused on developing vehicles equipped with sophisticated computing systems, high-resolution sensors, and high-speed networking capabilities to handle enormous amounts of data. However, with increased connectivity comes increased cybersecurity risks. Microsegmentation ensures that critical vehicle systems and networks are virtually isolated and compartmentalized, preventing threats or malware from spreading. This enhances safety and prevents potential liability issues associated with cyberattacks on autonomous vehicles.
Porter’s Analysis
Threat of new entrants: High capital requirements act as a barrier for new companies.
Bargaining power of buyers: Buyers have low bargaining power due to lack of alternatives and highly consolidated market.
Bargaining power of suppliers: Suppliers have moderate power due to limited options available for technologies.
Threat of new substitutes: Threat of new substitutes is moderate as new alternative technologies can disrupt the current market.
Competitive rivalry: Intense competition exists between major players to gain market share.
Geographical Regions
North America accounts for around 35% of the global microsegmentation market share in terms of value. The region is considered as one of the earliest adopters of microsegmentation solutions owing to stringent government regulations and increasing demand from enterprises for advanced network security.
Asia Pacific region is expected to witness the fastest growth during the forecast period. Rapid digital transformation across industries along with growing BYOD and mobility trends are the key factors driving the microsegmentation market growth in the region. Countries such as China, India, Japan, and South Korea are showing significant adoption of microsegmentation solutions.