Deep Packet Inspection and Processing Market: Recent Industry Developments and Growth Strategies Adopted by Players

Deep packet inspection (DPI) is a technology which allow network owner to analyze data packets in real-time. In DPI process, the network operator can investigate data packets beyond the basic header i.e. sender and receiver address. That means, unlike Internet protocol (IP), DPI can access the payload of the IP packets which allows network operators to control and classify, internet traffic based on the content, subscribers and applications. Thus, DPI, intelligently determines the content of a packet and retrieves information for statistical and analytical purpose. The improving internet security standards globally, is the one of the key trends influencing the growth of DPI and processing market.

DPI and processing market is widely segmented on the basis of component type, applications and end-use verticals. On the basis of component type, DPI and processing market is further classified as intrusion detection and prevention system, network improvement, data prevention & management and services. Services segment further include, system installation and training, maintenance, and consulting. With millions of internet connectivity achieved throughout the world, DPI and processing market is widely adopted in many applications.

In terms applications, DPI and processing market is categorized as network security, network management (content optimization, billing and metering applications, load balancing and network and subscriber analysis), monitoring and interception, targeted advertising, copyright enforcement, and content regulation. Based on end-use verticals, DPI and processing market is further segmented into, telecom and IT, government, military and defense, healthcare, transport & logistics, manufacturing & retail, banking, financial services and insurance (BFSI) and others (education and energy).

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Augmenting demand for improved internet security is the key market driver in DPI and processing market. The increasing threats in the form of spam, worm and virus has resulted in strong demand of improved cyber security especially among data-sensitive institutions. According to “Internet Security Threat Report” published by Symantec Corporation based in Mountain View, California, the U.S. in April 2016, 430 Million new malware were diagnosed in 2015 which is 36% more than 2014. This information reveals that, malware threat is the growing significantly, which in turn is likely to proliferate the growth of deep packet inspection and processing market.

Additionally, strong demand to improve network performance and reduce the capital expenses (CapEx) and operation expenses (OpEx), is further fuelling the adoption of latest DPI systems among all the business segments. DPI and processing requires robust hardware to process and retrieve information at real time processing speed. This hardware is often highly priced which make its adoption challenging in small and medium enterprises. This factor is likely to restrain the growth of DPI and processing market. Alongside this, lack of awareness of DPI and processing technology especially in economies such as China, India, Indonesia, and Brazil is expected to curb its market growth.

Moreover, concerns over data privacy in the critical IP packets especially in government and defense organization is likely to suppress the market growth of DPI and processing market. With, trending internet of things for connected digital ecosystem and dramatic increase in internet service adoption through smartphones and laptops, projects a significant market opportunity for DPI and processing manufacturers/players.

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Globally, North America region is the likely to dominate in terms of adoption of DPI and processing technology. The early development and strict government reforms to ensure security of online data are the key factors driving the DPI and processing market in the region. However, with rising use internet services among commercial and public organizations and increasing data security threats in Asia Pacific region, this region is expected to show strong market growth in near term.

Some of the key players operating in DPI and processing market are Cisco Systems, Inc., IBM Corporation, Symantec Corporation, Intel Corporation, H-P Enterprise Company Radisys Corporation and Palo Alto Networks, Inc.