The unified threat management (UTM) sector is projected to expand from US$ 5.25 billion in 2022 to US$ 11.88 billion by 2030, reflecting a compound annual growth rate (CAGR) of 10.7% during this period.
Consumer demand for high-speed internet and improved device connectivity is on the rise. Both small and large enterprises are embracing digital transformation to enhance productivity and streamline their operations. In response to the increasing need for superior connectivity, various governments are investing in the enhancement of their telecommunications infrastructure. For example, in December 2021, the President of the United States announced a substantial investment of US$ 1.2 trillion as part of an infrastructure initiative, with a significant portion allocated to improving broadband infrastructure and making it more affordable.
Developing nations are witnessing a surge in their telecommunications sectors. According to Invest India, the Production-Linked Incentive (PLI) Schemes under the Atmanirbhar Bharat Abhiyan have been launched to promote the manufacturing of telecom and networking products. Furthermore, the number of internet connections saw a remarkable increase of 232% in June 2022 compared to March 2014. Such government investments aimed at fostering digitalization and establishing robust telecommunications infrastructure are propelling the growth of the telecom industry, which in turn drives the demand for advanced security solutions. As network and device connections face numerous security threats, many players in the telecom market are adopting unified threat management solutions to protect their networks, thereby contributing to the growth of the UTM market.
The global unified threat management market is categorized by deployment into cloud-based and on-premises solutions. In 2022, the cloud segment dominated the market share. The benefits of cloud services, including cost efficiency, flexibility, and enhanced security, are encouraging the adoption of cloud-based security solutions. Cloud-based UTM offers comprehensive visibility into the network, enabling users to make timely and informed decisions regarding network security from any location at any time. For instance, Trend Micro Incorporated offers Cloud Edge unified threat management as a service, which integrates seamlessly with existing tools and processes to enhance efficiency and security, while also providing superior performance and management capabilities. Such features of cloud solutions are driving their demand and prompting market players to innovate. A notable example is Trend Micro's launch of Trend Micro One in October 2022, a unified cybersecurity and attack surface management platform aimed at strengthening security in Indonesia.
In Europe, the unified threat management market is divided into several regions, including Germany, France, Italy, the UK, Russia, and the Rest of Europe. Cyber threats in Europe are escalating, with numerous cyberattacks targeting various institutions across the European Union (EU). For instance, in June 2023, hackers from China compromised the email accounts of a Western European government, affecting around 25 organizations, including government entities and individuals associated with them. This breach went unnoticed for nearly a month until users reported unusual email activity to Microsoft. To mitigate such threats, the use of unified threat management software is becoming increasingly prevalent in Europe, thereby driving market growth in the region.
Key players in the unified threat management market include Fortinet Inc, Check Point Software Technologies Ltd, SonicWall Inc, Sophos Ltd, Cisco Systems Inc, Juniper Networks Inc, Barracuda Networks Inc, Stormshield SAS, Huawei Technologies Co Ltd, and WatchGuard Technologies Inc. Additionally, several other significant players in the UTM market have been analyzed to provide a comprehensive view of the market and its ecosystem.
The overall size of the unified threat management market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the UTM market. This approach also aimed to provide an overview and forecast of market growth across all segments. Furthermore, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper analytical insights. Participants included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the unified threat management sector.