Strong demand for cybersecurity products
The global cybersecurity market has grown at a significant rate over the years. The threat of cyber attacks has driven up demand for products and solutions. According to Fortinet (FTNT), the total cybersecurity market is estimated to reach $160 billion by 2030, up from $85 billion in 2020. Fortinet also estimates the network and endpoint security market to grow from $14 billion in 2020 to $22 billion in 2030.
Enterprise data is set to explode. The data will now travel from outside the company’s private network to mobile, edge, and cloud. This has led to an integration of security and networking for enterprises.
During Fortinet’s earnings call, the company’s CEO, Ken Xie, stated, “Security requires 10x to 100x more computing power compared to networking for the same network throughput. This requirement makes network security slower and very expensive. Fortinet SPU is a technology delivers 10x the performance of other software approaches, eliminating the performance gap and a lower cost than our competition.”
Explosion of IoT will drive security demand
Fortinet believes the exponential growth of Internet of Things (or IoT) and connected devices will accelerate the movement of data and computing to the edge.
Market research firm Gartner stated that around 70.0% of edge data never reaches the data center for processing. It expects about 40.0% of large enterprise to integrate edge computing by the end of 2020, up from just 1.0% in 2017. Fortinet claims to have a robust suite of security solutions for the edge and multi-cloud environments.
Fortinet also expects the enterprise spending on cybersecurity solutions to grow as a percentage of the overall IT (information technology) budget that will drive demand for products higher.