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Firewalls are usually told as generations. The first, stateless, works like a router with rules: it checks every packet on its own against addresses and ports. The second, stateful, tracks each conversation, so it can let replies in because someone inside asked for them and drop packets that do not fit. Sources differ on what comes next: some count application-layer firewalls, which check that the application protocol is what the port claims, as generation three and next-generation firewalls as four; others call NGFW the third.
The term next-generation firewall came from Gartner, coined after the fact to name what firewalls had become. Its clearest mark is deep packet inspection, looking into the data itself. Because of when it was coined, an NGFW usually brings anti-malware, VPN, intrusion prevention, web and spam filtering and data loss prevention too, which makes it very close to a UTM.
Each later generation can do what the earlier ones did. So for any job, ask what the least it takes is: the headers alone, a memory of the conversation, the application protocol, or a look inside the data.
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