Domain Name System (DNS) Firewall Market - Forecast(2022 - 2027)

The global Domain Name System (DNS) firewall market size is forecast to reach $245.3 million by 2027, growing at a CAGR of 10.9% from 2022 to 2027. The market growth can be attributed factors such as growing demand for network security solutions & application gateways in data-sensitive enterprises, increasing utilization of virtual appliances to transform software delivery experience within IT segment, rapid rise of cyberattack incidents, and so on. DNS Firewall aids in the prevention of malware attacks and provides network security features such as packet filters to defend against rapidly evolving threats which can enter systems even through authoritative servers, thus driving its market demands across varied industry verticals, be it hospitality, banks, and so on. Furthermore, adoption of cloud services or cloud computing over on-premise models, alongside growing trends of bring your own device, high utilization of smart phones coupled with web applications is analyzed to drive the growth of domain name system (DNS) firewall market in the long run.

Domain Name System (DNS) Firewall Market Report Coverage

The report: “Domain Name System (DNS) Firewall Market Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Domain Name System (DNS) Firewall industry.

Key Takeaways

• Virtual appliances segment in the global domain name system (DNS) firewall market is analyzed to grow at the highest rate during the forecast period 2022-2027, attributed to increased utilization of heavy applications in organisations, significant compatibility with windows operating system and so on.
• Banking, financial services and insurance (BFSI) sector is analyzed to witness the fastest growth in the global domain name system (DNS) firewall market during 2022-2027 owing to increased penetration of online banking or digital banking platforms, and increasing cyberattack vulnerabilities.
• North America region dominated the global domain name system (DNS) firewall market in 2021, owing to government initiatives to improve data protection & cyber security, along with growing transitional shift toward BYOD (bring your own device) trends. 
• Growing penetration of smartphones coupled with utilization of web applications along with rising data security concerns within data-sensitive organizations is analyzed to significantly drive the market growth of domain name system firewall (DNS) during the forecast period 2022-2027.

Domain Name System (DNS) Firewall Market Segment Analysis-By Deployment Mode

Based on deployment mode, virtual appliances segment is analyzed to witness the fastest growth of 11.2% in the global domain name system firewall (DNS) market during the forecast period 2022-2027. This is attributed to several factors including growing use of heavy applications within organisations, rising use of computing technologies, significant compatibility with windows operating system, and so on. Adoption of virtual appliances, help in turning business work operations more flexible and efficient, by creating mobile work force, reduce development cots as well as virtualize work environments. Since virtual appliance helps in simplifying delivery as well as operation of an application while allowing multiple operating system environments to exist simultaneously on the same machine, they have gaining wide popularity in the DNS firewall markets. In May 2022, Barracuda Networks, Inc. announced the expansion of cloud-native SASE platform. Some of the features attributed to the platform are firewall-as-a-service technology, zero trust network access, secure web gateway which provides secure connectivity to industrial IoT devices. These updates were meant to offer highly scalable IoT connectivity for public & private services along with securing connector virtual appliances. Such factors are set to assist the market demand for virtual appliance deployed domain name system firewall in the long run.

Domain Name System (DNS) Firewall Market Segment Analysis- By Industry Vertical

Banking, financial services and insurance (BFSI) sector is analyzed to grow with the highest CAGR of around 12.8% in the global domain name system (DNS) firewall market during the forecast period 2022-2027 attributed to digitizing banking services, increasing vulnerability to cyberattacks, and so on. Adoption of DNS analytics plays a critical role in preventing DoS and DNS-related attacks across banks o financial institutions, which are highly targeted by cybercriminals and malware attacks overtime. Furthermore, this feature helps in optimizing web traffic as well as for identification of DNS misconfigurations & threats to the network. According to the DNS Threat Report 2020, DNS attacks in financial institutions cost approximately around $1.3 million per attack. This figure is on the higher side when compared to other industries, as the average damage cost across all other industries is $924,000. In June 2021, a Germany company, which operates technology for the nation's cooperative banks had revealed about facing a cyber-attack disrupting more than 800 financial institutions. This was a distributed denial-of-service (DDoS) attack, in which hackers attempted to paralyse the network by flooding it with large amounts of data traffic, which in turn, led to shutting down or slowing the websites of cooperative banks across the country, including Berliner Volksbank. Such factors are set to drive the market growth of Domain Name System (DNS) Firewall within the BFSI industry in the coming years.

Domain Name System (DNS) Firewall Market Segment Analysis- By Geography

North America region dominated the global domain name system (DNS) firewall market with a share of 38% in 2021, owing to factors such as increase in the use of advanced cybersecurity measures across various industries, government initiatives to improve data protection & cyber security, growing transitional shift toward BYOD (bring your own device) trends, and so on. Furthermore, growing virtualization within IT industries, high R&D activities from local market players, government efforts to improve network security risks associated with DNS hijacking incidents, favourable digital infrastructure, and rising cyber threats are playing major role in the growth of domain name system (DNS) firewall market in the region. According to the WeLiveSecurity 2021 report, the FBI received a record-breaking 791,790 cybercrime complaints in 2020, costing more than US$4.2 billion. This emphasised upon the growing concerns of data security within data-sensitive organisations, thus influencing the market growth of DNS firewall solutions. These factors are set to boost the growth of domain name system (DNS) firewall within North American markets overtime.

Domain Name System (DNS) Firewall Market Drivers

<span lang="EN-US" calibri",sans-serif;mso-ascii-theme-font:minor-latin;mso-hansi-theme-font:="" minor-latin;mso-bidi-theme-font:minor-latin"="" style="box-sizing: border-box;">Growing penetration of smartphones coupled with utilization of web applications is propelling the growth of Domain Name System (DNS) market:

<span lang="EN-US" calibri",sans-serif;mso-ascii-theme-font:minor-latin;mso-hansi-theme-font:="" minor-latin;mso-bidi-theme-font:minor-latin"="" style="box-sizing: border-box;">Growing penetration of smartphones with significant utilization of web applications, act as a major factor boosting the growth towards domain name system (DNS) firewall market. Significant penetration of social media platforms, online shopping platforms are propelling the use of smartphones and different web applications. Social media can provide attackers with a platform to impersonate trusted people and brands, as well as the information they need to carry out additional attacks such as social engineering and phishing. These sites expose security flaws, allowing fraud and malware attacks to take place. According to the Global digital overview report 2020, published in collaboration with We Are Social and Hootsuite, social media and mobile phones have become an essential part of people's daily lives all over the world. At the start of 2020, more than 4.5 billion people were using the internet, with social media users exceeding 3.8 billion. By the end of 2020, nearly 60% of the global population was online, and these trends are expected to continue, increasing vulnerability to cyberattacks. In June 2022, The DNS Abuse Institute in collaboration with CleanDNS announced the launch of NetBeacon, the first centralized DNS Abuse reporting service. NetBeacon will be open to the public and will allow anyone to easily report DNS Abuse, which includes malicious Internet activities such as malware, botnets, phishing, and spam. It will raise awareness about the importance of safe internet practices and increase the adoption domain name system (DNS) firewall. Such factors will cater to significant growth of  domain name system (DNS) firewall market in the long run.

Rising data security concerns within data-sensitive organizations is driving the market growth of Domain Name System (DNS) Firewall:

Rising data security concerns within data-sensitive organizations can also be considered as a major driver boosting the growth towards domain name system (DNS) firewall market. This growth is being driven by rising data security risks within data-sensitive organisations, rise of security breach incidents leading to exposure of sensitive or confidential information, and so on. Since DNS Firewall ensures end-to-end encryption, query resolution, strong protection against Distributed Denial-of-Service (DDoS) attacks via rate-limiting, and protection against unwanted downtime at the hands of cybercriminals, there is significant adoption of such tools across organisations. Additionally, it reduces latency and unplanned outages while maintaining high availability and reliability. According to International Data Corporation's DNS security survey 2021, about 87% of organizations reported that DNS attacks disrupted their apps and services during the previous year. DNS services are used in nearly 91% of all malware attacks. Traditional cybersecurity measures seem no longer adequate in such situations, whether an enterprise organization, a small business, or a home internet user, there is significant shift towards DNS firewall. In March 2022, AWS launched Amazon Route 53 Resolver DNS Firewall which allows customers to block DNS queries for known malicious domains while allowing queries for trusted domains. DNS Firewall provides more precise control over Amazon Virtual Private Cloud resources. Such factors are set to accelerate the market growth of the domain name system (DNS) firewall in the coming time.

<span lang="EN-US" calibri",sans-serif;mso-ascii-theme-font:minor-latin;="" mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:minor-latin"="" style="box-sizing: border-box;">Domain Name System (DNS) Firewall Market Challenges 

<span lang="EN-US" calibri",sans-serif;mso-ascii-theme-font:minor-latin;="" mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:minor-latin"="" style="box-sizing: border-box;">High cost associated with the implementation and upgrade of DNS firewall is restricting the market growth:

<span lang="EN-US" calibri",sans-serif;mso-ascii-theme-font:minor-latin;mso-hansi-theme-font:="" minor-latin;mso-bidi-theme-font:minor-latin"="" style="box-sizing: border-box;">High installation and configuration price of DNS firewalls is limiting the growth of market owing to the high cost of hardware components and an additional requirement of an IT professional for installation. Furthermore, hardware firewalls are more expensive than software firewalls because they require costly installation and maintenance. Software firewalls being less expensive and simple installation, make it more preferable over DNS firewall. According to the most recent Azure DNS pricing, the average cost of installing a DNS firewall in a small business is between $700 and $1,000. For businesses with 15 to 100 users, firewall hardware costs between $1,500 and $4,000. Such high costs, combined with operational complexity and low performance, limit DNS firewall adoption. Such high costs reduce its adoptability in small businesses owing to limited IT budget constraints, installation complexity, and so on, thus creating an adverse impact on its market growth overtime.

Domain Name System (DNS) Firewall Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Domain Name System (DNS) Firewall market. The Domain Name System (DNS) Firewall top 10 companies include market include:

1. Allied Telesis Inc.
2. BlueCat Inc.
3. Cisco Systems Inc.
4. Cloudflare Inc.
5. Comodo Group Inc.
6. Constellix
7. EfficientIP SAS
8. EonScope
9. IBM Corporation
10. F5 Networks

Recent Developments

• In December 2021, Cloudflare launched zero-trust push cloud-native firewall to expand the functionality of Cloudflare cloud firewall so that organizations can increase the security of their entire corporate network & user data, helps in website traffic management, and gain greater network visibility. 
• In September 2021, Microsoft updated Azure Firewall to extend network security without public IP in Forced Tunnel mode with the stop and start commands. It is now supporting the US West 3, Jio India West, and Brazil Southeast.
• In April 2021, Comodo announced the release of Comodo Dome Firewall 2.0, an all-in-one Unified Threat Management (UTM) virtual appliance that provides a comprehensive suite of boundary and network security features within a single pane of glass, having free of charge on-premise installation.

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