Secure Web Gateway Market Size, Share, Growth & Industry Analysis, By Component (Solution, Services), By Deployment Mode (On-Premises, Cloud), By Organization Size (SMEs, Large Enterprises),By End User and Regional Analysis, 2024-2031

Secure Web Gateway Market Size

The global Secure Web Gateway Market size was valued at USD 10.33 billion in 2023 and is projected to grow from USD 12.29 billion in 2024 to USD 45.32 billion by 2031, exhibiting a CAGR of 20.49% during the forecast period. The rapid pace of digital transformation across industries is significantly increasing web traffic volumes and the shift toward digital-first operations is exposing companies to web-based security risks.

This has fueled the deployment of secure web gateways to protect web traffic and maintain secure access to applications. In the scope of work, the report includes services and solutions offered by companies such as Cisco Systems Inc., McAfee LLC, Forcepoint LLC, Cloudflare Inc., Palo Alto Networks Inc., Sophos Group plc, Barracuda Networks Inc., Broadcom Inc. Trend Micro Inc., IBM Corporation, and others.

The widespread adoption of digital technologies across healthcare, finance, and retail applications further amplifies the need for comprehensive web security solutions, which is expected to drive the growth of the market over the forecast period.

Moreover, cyberattacks are becoming more frequent and sophisticated, with attackers deploying advanced tactics like phishing, ransomware, and zero-day exploits. Organizations face high risks from these evolving threats, which is encouring them to adopt robust web security measures.

SWGs help mitigate these risks by providing real-time traffic monitoring, content inspection, and malware protection. With businesses becoming more aware of the financial, operational, and reputational damage caused by cyberattacks, the demand for advanced web security solutions continues to surge, driving the expansion of secure web gateway market.

• A 2024 study by the National University reveals a 75% increase in cloud environment intrusions over the past year. As of 2023, more than 72% of businesses globally were impacted by ransomware attacks. Additionally, 82% of data breaches involved cloud-based data, with ransomware being the primary threat. Furthermore, 52% of organizations faced ransomware attacks that had a significant impact on their business systems and operations.

A Secure Web Gateway (SWG) protects users from web-based threats by filtering and monitoring internet traffic. It provides a barrier between users and the internet, preventing access to malicious websites, blocking malware, and enforcing organizational web usage policies. SWGs analyze both inbound and outbound traffic, ensuring data protection and compliance with regulatory standards.

They also offer advanced features such as URL filtering, SSL inspection, data loss prevention (DLP), and real-time threat intelligence. SWGs are essential in safeguarding remote workforces, cloud applications, and hybrid environments, ensuring secure web access across distributed networks.

Analyst’s Review

Government Investments in Cybersecurity Infrastructure help expand the market. Recognizing the importance of cybersecurity for national security, governments are significantly increasing their investments in enhancing digital defense systems. These investments enhance the protection of critical infrastructure and encourage the adoption of advanced security solutions, including SWGs.

By prioritizing cybersecurity, governments create a favorable environment for the deployment and growth of SWG technologies, prompting organizations to align their security strategies with national standards and safeguard sensitive information.

• In July 2024, IBM announced securing a five-year contract with an initial funding of USD 26 million from the U.S. Agency for International Development (USAID) to support its Cybersecurity Protection and Response (CPR) program. This initiative is designed to expand and enhance USAID’s cybersecurity response capabilities for host governments in the Europe and Eurasia (E&E) region. IBM's multidisciplinary team will offer ongoing support to help USAID strengthen the ability of host government agencies and critical infrastructure operators to identify, protect against, detect, respond to, and recover from cyberattacks

Moreover, strengthening regulatory frameworks and cybersecurity policies significantly impacts the secure web gateway market. Governments are actively updating and reinforcing regulatory frameworks and cybersecurity policies to address emerging threats. These enhanced regulations impose stringent requirements for data protection and security measures.

• In January 2024, the Indian government introduced the National Cybersecurity Reference Framework (NCRF), a comprehensive guideline designed to establish cybersecurity standards across the nation. The framework targets key sectors such as telecom, power, transportation, finance, strategic entities, government bodies, and healthcare, offering guidance to help organizations build robust cybersecurity systems. It also advises enterprises to allocate a minimum of 10% of their total IT budget to cybersecurity, with oversight by top-level management or the board of directors.

In response, businesses are increasingly implementing SWG solutions to comply with these regulations and protect their digital assets. The tightening regulatory landscape leads to a higher demand for SWGs, as organizations seek to meet compliance standards and mitigate risks associated with cyber threats.

Secure Web Gateway Market Growth Factors

Global internet usage is growing at an unprecedented rate, particularly in emerging markets where internet penetration is increasing rapidly. The increase in web traffic requires stronger protection against malware, phishing attacks, and data breaches, fueling the expansion of secure web gateway market.

With more businesses operating in an interconnected global environment, the need for SWGs to filter and secure web traffic becomes critical to safeguarding operations and protecting sensitive data.

• According to the International Telecommunication Union (ITU), approximately 67% of the global population, equating to 5.4 billion people, were internet users in 2023. This marks a growth of 4.7% from 2022, surpassing the 3.5% increase recorded between 2021 and 2022.

Moreover, the expansion of the global economies has brought about a parallel rise in IT spending across various industries. Sectors such as finance, healthcare, manufacturing, and retail are investing in digital technologies to drive efficiency, innovation, and customer engagement.

With increased digital adoption comes a greater need for securing web traffic, particularly as businesses interact with cloud-based applications and platforms. Organizations recognize the importance of securing web gateways to protect their investments in digital transformation and maintain business continuity, driving significant growth in the market.

Secure Web Gateway Market Trends

The shift toward remote and hybrid work policies have fundamentally changed corporate IT environments. Employees are increasingly accessing company networks and web-based applications from outside traditional office environments, often through unsecured personal devices and networks.

• Nvidia, a leading player in the AI revolution, has embraced a flexible approach to remote work. The company views flexible work arrangements as a key strategy for attracting and retaining top talent.

This expanded attack surface heightens the risk of web-based threats, pushing organizations to adopt SWG solutions to secure web access and ensure consistent security policies across all devices and locations. Businesses are prioritizing secure connectivity and data protection as remote and hybrid work models become permanent features of the modern workforce, boosting the secure web gateway market trend.

Furthermore, the integration of secure web gateway solutions with Secure Access Service Edge (SASE) frameworks is transforming the way organizations approach network security. SASE combines networking and security functions into a single, cloud-delivered platform, with SWG serving as a critical component for securing web traffic. As businesses shift toward cloud-based infrastructures and a remote workforce, the demand for SASE solutions, which include SWG functionality, is rapidly growing.

Segmentation Analysis

The global market has been segmented based on component, deployment mode, organization size, end user, and geography.

By Component

Based on component, the secure web gateway market has been segmented into solution, services. The services segment is poised for significant growth at a robust CAGR of 20.06% through the forecast period due to the increasing reliance on managed security services and the complexity of cybersecurity needs across organizations.

Businesses face complex web-based threats and require continuous monitoring, threat detection, and management to ensure secure internet access. Additionally, the growing adoption of cloud-based services has led to the demand for scalable, flexible SWG solutions delivered through service models.

By Deployment Mode

Based on deployment mode, the market has been classified into on-premises and cloud. The on-premises segment secured the largest revenue share of 60.83% in 2023. This is attributed to its ability to offer greater control and customization over security infrastructure.

Organizations in highly regulated industries, such as finance and healthcare, often prefer on-premises solutions to ensure data sovereignty and compliance with stringent privacy laws. Additionally, companies with legacy infrastructure or complex IT environments often favor on-premises SWGs for their ability to meet specific security needs, reinforcing their dominance in the market.

By End User

Based on end user, the market has been divided into BFSI, healthcare, education, manufacturing, and others. The BFSI segment led the market in 2023, reaching the valuation of USD 3.77 billion. BFSI manages large volumes of sensitive financial and personal data, making it a prime target for cyberattacks.

The growing complexity of threats, including phishing, ransomware, and advanced persistent threats, highlights the necessity for sophisticated web security solutions. Additionally, stringent regulations, such as PCI DSS and GDPR, mandate BFSI organizations to implement robust data protection measures. These factors fuel significant investment in SWG solutions, highlighting the sector's critical demand for enhanced web security.

Secure Web Gateway Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America secure web gateway market share stood at around 37.29% in 2023 in the global market, with a valuation of USD 3.85 million. Rising geopolitical tensions are driving the growth of the market in North America. Increasing state-sponsored cyberattacks have targeted critical infrastructure, financial institutions, and government agencies, reflecting the broader trend of cyber warfare emerging as a strategic tool in geopolitical conflicts.

• In March 2024, Microsoft revealed that hackers connected to Russia's foreign intelligence were once again attempting to breach its systems. The attackers were leveraging data stolen from corporate emails to gain renewed access to the tech giant, whose products are extensively used within the U.S. national security infrastructure.

These attacks aim to disrupt economic activities, steal sensitive information, and cause significant damage. The increased threat landscape highlights the need for advanced security solutions, such as SWGs, to protect against these sophisticated threats and safeguard vital assets across both public and private sectors in the region.

Asia Pacific is poised for significant growth at a robust CAGR of 21.73% over the forecast period. Rapid Digitalization and Technology Adoption significantly drives the growth of the secure web gateway market in the Asia-Pacific. Organizations across industries are advancing their digital transformation efforts, resulting in a notable rise in the use of cloud applications, web services, and digital platforms.

• According to the 2023 reports by the World Economic Forum, South Asian countries are increasingly embracing digitalization in a strategic and widespread manner. By 2030, Southeast Asia's internet economy is projected to reach USD 1 trillion, fueled by a rapidly expanding base of digital consumers and applications.

This digital shift has expanded the attack surface, exposing businesses to risks from web-based threats like malware, phishing, and data breaches. To address these vulnerabilities and secure access to online resources, companies are increasingly adopting SWG solutions. Growing reliance on technology in finance, healthcare, and manufacturing further accelerates the demand for SWG solutions in the region.

Competitive Landscape

The global secure web gateway market report provides valuable insights with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers and acquisitions, product innovations, and joint ventures, to expand their product portfolio and increase their market shares across different regions.

Strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, could create new opportunities for the market growth.

List of Key Companies in Secure Web Gateway Market

• Cisco Systems Inc.
• McAfee LLC
• Forcepoint LLC
• Cloudflare Inc.
• Palo Alto Networks Inc.
• Sophos Group plc
• Barracuda Networks Inc.
• Broadcom Inc.
• Trend Micro Inc.
• IBM Corporation

Key Industry Developments

• July 2024 (Partnership): McAfee announced the extension of its ten-year partnership with Samsung, focusing on enhancing protection against online threats to consumer privacy, identity, and personal information. This collaboration aims to provide Samsung Galaxy device users with comprehensive security solutions powered by AI technology
• May 2024 (Acquisition): Cloudflare announced its acquisition of BastionZero, a platform focused on Zero Trust infrastructure access. This acquisition aims to enhance Cloudflare's Zero Trust Network Access (ZTNA) capabilities, specifically for managing access to critical infrastructure such as servers, Kubernetes clusters, and databases.

The global Secure Web Gateway market has been segmented:

By Component

• Solution
• Services

By Deployment Mode

• On-Premises
• Cloud

By Organization Size

• SMEs
• Large Enterprises

By End User

• BFSI
• Healthcare
• Education
• Manufacturing
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America