Asia-Pacific Web Application Firewall Market Increasing Attacks on the Application Layer are Driving the Market
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1 Asia-Pacific Web Application Firewall Market Increasing Attacks on the Application Layer are Driving the Market May
2 Contents Section Slide Number Executive Summary 3 Market Overview 9 Total Web Application Firewall Market Drivers and Restraints 14 Forecasts and Trends 21 Segment Breakdown 29 Market Share and Competitive Analysis 33 ANZ Breakdown 38 ASEAN Breakdown 50 Greater China Breakdown 62 India Breakdown 74 Japan Breakdown 85 South Korea Breakdown 96 The Last Word 107 Appendix 110 2
3 Executive Summary This research service covers the Web Application Firewall (WAF) solutions market in Asia- Pacific, which addresses the security technology used to protect Web application servers from threats targeting Web application layer. All revenue and forecast assumptions in this report are based on CY2014 (January 2014 December 2014). The Asia-Pacific (APAC) Web application firewall (WAF) market continued to experience robust growth of % on a year-on-year (YoY) basis, reaching a total market size of $ million in The strong growth momentum was driven by increasing reliance on Web applications to cater to the rise in ecommerce and Internet banking activities over the past few years. The popularity of these activities has increased the number of users, as well as attack frequency which drives the adoption of WAF solutions to protect business information for both enterprises and users. As a result, market revenue is anticipated to reach $ million in 2020, growing at a CAGR of % from 2014 to As the threat landscape has becoming more sophisticated, with attacks on the application layer increasing significantly, Web systems are more vulnerable than ever and are frequent targets of hackers to gain access to privileged information. This has caused enterprises to adopt dedicated WAF technology to protect their Web application servers where legacy network security solutions failed to do so. 4
4 Executive Summary (continued) In APAC, enterprises in China and South Korea were the largest adopters of WAF solutions, contributing a combined share of % to the market in Strong growth momentum was also observed in Japan, Malaysia, Singapore, Indonesia, and India. Greater China, India and ASEAN continued to be the top countries, with growth rates of %, %, and %, respectively, as many businesses started to take action toward data security protection in the wake of more personal data protection and privacy acts as well as the Payment Card Industry Data Security Standard (PCI-DSS). Regulatory compliance remained one of the key motivations for enterprises in APAC to adopt WAF technology, especially in the ecommerce and Internet banking segments. As such, WAF technology is expected to play an even more important role in stimulating IT security spending in APAC in the coming years. Stand-alone appliances are set to continue to stimulate market demand, with most of the adoption occurring in large enterprises, as these enterprises have more applications and greater concerns over data sensitivity, and possess larger IT budgets. 5
5 Executive Summary Market Engineering Measurements Total WAF Market: Market Engineering Measurements, APAC, 2014 Market Overview Market Stage Market Revenue Market Size for Last Year of Study Period Base Year Market Growth Rate Growth $ M $ M % (2014) (2021) Compound Annual Growth Rate Customer Price Sensitivity Market Concentration % (CAGR, ) (scale:1 [Low] to 10 [High]) % (% of market share held by top 3 companies) Decreasing Stable Increasing For a tabular version, click here. Note: All figures are rounded. The base year is
6 Executive Summary Market Engineering Measurements (continued) Competitor Overview Number of Competitors More than Number of Companies that Exited* Number of Companies that Entered** (active market competitors in base year) (2014) (2014) Decreasing Stable Increasing * Companies with revenue of less than $1.0 million ** Companies with revenue more than $1.0 million Note: All figures are rounded. The base year is
7 Executive Summary CEO s Perspective The adoption of WAF increased significantly in Greater China in the wake of new and sophisticated attacks. Local vendors are expanding their market reach internationally after solidifying their foothold at home. Adoption of stand-alone solutions remained mainstream, while customer preference for add-on features increased. Solution integration is expected to become increasingly popular for WAF, to increase the level of protection. 8
8 Market Overview Definitions Total WAF Market: Types of Technology, APAC, 2014 Web Application Firewall Stand-alone Appliance Add-on Module/Software Web Application Firewall Web application firewall (WAF) is a security technology, either hardware or software, built in front of the Web server, that analyzes OSI Layer-7 traffic (a whole session, not packets) to protect applications from attacks aimed at exploiting vulnerabilities in them. Stand-alone WAF appliance: This is a dedicated/purpose-built hardware appliance designed to primarily protect Web servers from application-layer attacks. Other technologies such as DDoS protection, authentication, and application vulnerability scanners can be integrated into the appliance. Add-on module/software: This is normally an optional integrated feature on other platforms such as application delivery controller (ADC) and unified threat management (UTM) devices, and works as an optional licensed service. Note: WAFs intercept, inspect, and deny/reject/allow Layer-7 traffic. WAF devices protect Web applications from specific vulnerabilities that IDS/IPS/FW do not detect. 10
9 Market Overview Geographical Scope Greater China China Hong Kong Taiwan Japan South Korea India ASEAN Singapore Malaysia Indonesia The Philippines Thailand Vietnam ANZ Australia New Zealand 11
10 Market Overview Key Questions This Study Will Answer Is the WAF market growing, how long will it continue to grow, and at what rate? Are the existing competitors structured correctly to meet customer needs? Will these solutions continue to exist or will they get acquired by other solutions? How will the structure of the market change with time? Will the products/services become features in other markets? Are the vendors in the market ready to go it alone or do they need partnerships to take their business to the next level? 12
11 Market Overview Segmentation Total WAF Market: End-User Segmentation, Asia-Pacific, 2014 Web Application Firewall Market Horizontal Markets Large business (LB: > employees) Small and medium businesses (SMB: < employees) Vertical Markets Banking, financial services, and insurance (BFSI) ecommerce Manufacturing (Mfg.) Government (Govt.) Education Service provider (SP) Others (includes pharmaceutical, retail, logistics, oil/gas, energy, mining, agriculture, IT/ITes, and BPO verticals) Key: BPO: Business Process Outsourcing 13
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