Asia-Pacific Web Application Firewall Market Increasing Attacks on the Application Layer are Driving the Market

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Asia-Pacific Web Application Firewall Market

Increasing Attacks on the Application Layer are Driving the Market

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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 2014. 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 2021.

• 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.

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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 2014. 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.

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Compound Annual Growth Rate

%

(CAGR, 2014–2021) Market Concentration

%

(% of market share held by top 3 companies)

Executive Summary—Market Engineering Measurements

Market Stage

Growth

Market Revenue

$

M

(2014)

Market Size for Last Year of Study Period

$

M

(2021) Base Year Market Growth Rate

%

Customer Price Sensitivity

(scale:1 [Low] to 10 [High])

Total WAF Market: Market Engineering Measurements, APAC, 2014

Stable Increasing Decreasing

For a tabular version, click here.

Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

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Number of Companies that Exited* (2014) Number of Companies that Entered** (2014) Number of Competitors

More than

(active market competitors in

base year)

Executive Summary—Market Engineering Measurements

(continued)

Competitor Overview

Stable Increasing

Decreasing * Companies with revenue of less than $1.0 million _{** Companies with revenue more than $1.0 million}

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Executive Summary—CEO’s Perspective

2

Local vendors are expanding their market reach internationally after solidifying their foothold at home.

3

4

1

The adoption of WAF increased significantly in Greater China in the wake of new and sophisticated attacks.

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.

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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.

Web Application Firewall

Stand-alone Appliance Add-on Module/Software

Total WAF Market: Types of Technology, APAC, 2014

Market Overview—Definitions

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Market Overview—Geographical Scope

ANZ • Australia • New Zealand India ASEAN • Singapore • Malaysia • Indonesia • The Philippines • Thailand • Vietnam Greater China • China • Hong Kong • Taiwan Japan South Korea

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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?

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Market Overview—Segmentation

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)

Total WAF Market: End-User Segmentation, Asia-Pacific, 2014

Key:

Asia-Pacific Web Application Firewall Market Increasing Attacks on the Application Layer are Driving the Market