Cloud Security Market Overview
Global Cloud Security Market is expected to grow at a CAGR of 10.0% during the forecast period (2024-2031). Cloud Security is a service that facilitates the protection of stored online data via cloud computing platforms from leakage, theft, and deletion. The Global Cloud Security Market is dominated by the North America region, which holds the largest market share. The competitive rivalry intensifies with Symantec Corporation, Cisco Systems Inc, and Sophos Ltd.
There are several methods adopted by cloud security including penetration testing, virtual private networks (VPN), firewalls, obfuscation, tokenization and avoiding public internet connections.
Cloud security provides guidance to avoid the future risk associated with business risk at every layer of the stack to enable business goals to implement a secure-by-design methodology. Cloud security establishes security orchestration through automation to define and enforce businesses programs.
It helps to rapidly detect and respond to attacks as well as to manage threat and event information with precise insights. Hence several end-user industries such as BFSI, government institutions, small and medium scale enterprises, etc. are adopting cloud security to secure and manage critical data of the organizations.
Cloud Security Market Scope
| Metrics | Details |
| Market CAGR | 10% |
| Segments Covered | By Type, By Deployment, By Solution, By Application, By End-User, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Cloud Security Market Dynamics
The global cloud security market growth is driven by the rising demand for cloud security due to surge in the prevalence of cyber-attacks and the strengthening of rules & regulations for cyber security.
Increasing prevalence of cyber attack and strengthning of rules & regulations for data protection using cyber security
The global cloud security market is expected to grow significantly over the forecast period due to the increasing number of cases of cyber attacks. For instance, in 2019, Amazon cloud servers have been attacked by cybercriminals leaving behind more than half a billion Facebook users' records exposed and remaining unprotected.
Rising number of data breached cases
From 2005 to 2019, the largest banking institution in the United States Capital One have suffered a massive data breach that exposed the personal information of over 106 million credit card applicants. Thus such rising cyber crime cases around the world have propelled the demand for the cloud security market.
Lack of a skilled workforce and less awareness about cloud security hinder the market growth
Cloud security has less awareness among the developing regions due to the lack of presence of skilled workforce and the absence of advanced technology which hampers the growth of this market. A developing region such as South Africa has less knowledge regarding cloud computing. For instance, in 2015 as per the International Journal of Trade, Economics and Finance, in South Africa, a study was conducted to know the awareness about the cloud computing which showed that, around 40% of respondents has very low knowledge of cloud computing, 13% has average knowledge, 27% have a basic knowledge while 7% have a high knowledge.
Adoption of public cloud services with growing launching and spending on cloud security may create a lucrative opportunity
There is a rise in the adoption of public cloud-based services and the rise in the launching of advanced end point security services by leading players has created huge opportunities for this market. As per the International Trade Administration report, public cloud expenditure reached around US $ 250 billion by 2017, increasing from US$ 158 billion in 2014. It has created massive demand for the cloud security market around the globe.
COVID-19 Impact on Cloud Security Market
The market for cloud security is expected to grow significantly during the COVID-19 pandemic, this is primarily due to a surge in the number of data breaches cases globally. During the covid-19 pandemic, the scope of cyberattacks has been tremendously increased as several businesses have been moved towards a hybrid-cloud environment.
As per the threat report organization, cloud services have shown substantial growth of nearly 22% to reduce the number of company's downtime. Covid-19 pandemic has paved way for the adoption of cloud services, which made the cloud the center of attraction for attackers. Thus overall demand for the cloud security has been increased due to the prevalence of the covid-19 as several leading players were shifted to cloud platforms owing to a surge in the work from home cases as several countries were in lockdown state.
Cloud Security Market Segmentation Analysis
The global cloud security market is segmented based on type, deployment, solution, application, end-user, and region.
In terms of type, the global cloud security market is bifurcated into email & web security, cloud database security, cloud IAM, endpoint security, data loss prevention, network security, cloud encryption, application security, others.
The email & web security segment is expected to grow at the fastest CAGR during the forecast period (2021-2028)
Email & web security has the highest market share in 2019, this is primarily due to raising the number of data breach cases of exposing personal information. For instance, the web payment portal of the American Medical Collection Agency (AMCA) was attacked by a cyber criminal who exposed of personal data and payment information of around 20 million patients through an online website in 2019. Further on April 23, 2019 as per the FBI estimation, US businesses and individuals have registered a loss of over US$ 1.3 billion as a result of Business Email Compromise (BEC) fraud. It created a massive demand for cloud security for email & web services.
Also, cloud database security, cloud IAM, endpoint security, data loss prevention, network security, cloud encryption, application security are growing at faster pace owing to the rising adoption of advanced technology-based cloud services and rising cyber attacks in the end-user industries including BFSI, government organizations, etc. For instance as per the Weforum Organization report in 2019, botnet banking have been used data of around 30,000 customers to steal more than US$ 42 million over a 90-day period.
Public segment will provide the necessary boost during the forecast period (2020-2027)
Based on deployment, the global cloud security market is divided into public, multicloud, private and hybrid. Among this public cloud has the highest market share in 2019, owing to a surge in the adoption of public cloud services by the leading organizations, mediumand large enterprises around the globe.
Similarly, multi-cloud, private, and hybrid segments are also growing at a faster pace with advent of advanced technology launched by the leading players.
Identity and access management (IAM) has become a key factor in cloud computing
In terms of the solutions, the global cloud security market is divided into identity and access management (IAM), cloud security and risk strategy, threat management, hybrid multi-cloud security platform, workload protection, data protection and others. Among this identity and access management (IAM) segment has the highest market share owing to increasing the number of cases related to personal information data breaching by cyber criminals around the globe.
Similarly, cloud security and risk strategy, threat management, hybrid multi-cloud security platform, workload protection, data protection segments are also growing at a faster pace owing to the surge in the adoption of the cloud platforms with the rising threat of pishing, malware attacks on the personal and important data.
Large scale organizations have a higher impact in case of cyber attacks
On the basis of application, the global cloud security market is divided into large-scale enterprises, government Organizations, Small & medium enterprise, Institutions, and others. Among these, large-scale enterprises have the highest share in 2019, this is primarily due to an increase in the cyber security demand due to the threat of cyber attact. For instance on 7th October 2020, Tata Consultency Services has launched 10 new Threat Management Centres (TMC) in several contries including the US, UK, Spain and India for facilitating cyber security services to its enterprise customers.
BFSI is expected to dominate the Cloud Security market during the forecast period
Based on the end-user, the global cloud security market is divided into healthcare, BFSI, IT & Telecom, Government Agencies, Retail, and others.
Among this, BFSI segment has the highest market share owing to the rising demand for security personal banking information with the surge in the banking attack by cybercriminals. For instance as per the Insurance Information Institute (I.I.I.) Organization, globally, the banking industry has the highest average annual cost of US$ 16.7 million in 2017 and increased to US$ 18.4 million in 2018.
Similarly, IT & Telecom, Government Agencies, Retail segments are also growing at faster pace owing to surge in the adoption of cloud computing around the globe. Rising cyber-attacks around the globe have propelled these segmental growths. For instance, in 2019 as per the (I.I.I), cyber attack, malware incidents had the highest annual cost of around $2.6 million followed by web-based attacks at $2.3 million around the globe.
Cloud Security Market Geographical Share
North America region holds the largest market share global Cloud Security market
North America region is dominating the global cloud security market accounted for the largest market share in 2019, owing to the presence of leading technological players with growing investment in advanced technology for security to avoid data breach cases. The growing number of cases of cyber crimes cost a huge amount annually in this region followed by Europe.
According to the Insurance Information Institute (I.I.I.) the average annual cost of cybercrime in the United States increased by 29% to US$ 27.4 million in 2018 compared to US$ 21.2 million in 2017. It created massive demand for cloud security services and solutions to reduce the cyberattacks and cybercrime costs in this region followed by Europe. Asia-Pacific is also growing at fastest pace for the global cloud security market owing to the growing number of internet users and rising penetration of cloud-based platforms.
Cloud Security Market Companies and Competitive Landscape
The global cloud security market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Trend Micro, Inc., Sophos Ltd, Computer Science Corporation (Csc), Check Point Software Technologies Ltd., Symantec Corporation, Intel Security, Trend Micro, Inc., Symantec Corporation, Panda Security, CA Technologies, Inc., Cisco Systems, Inc., McAfee, Inc. and Fortinet, Inc. are the leading market players with significant market share.
There is rising development of advanced technology with the surge in the launching of security service platforms has created a huge opportunity for the cloud security market. For instance on 13th July 2020, Quick Heal Technologies launched new cyber security solutions which mainly focused on providing Privacy, Protection, and Performance.
Companies are entering into the collaborations, acquisitions, mergersand licensing for increasing their market penetration. For instance on 20th July 2020, Fortinet completed the acquisition of Opaq Cloud Security Startup for enhancing the capability by facilitating network protection more flexibly. This acquisition has combined Secure Access Service Edge (SASE) platform with the industry’s only trust Zero Trust access and security platforms in the market.
IBM:
Established in 1911and headquartered in New York, United States.
IBM is a one of the leading cloud platform and cognitive solutions providing company. The Company thrives on building industry-based solutions with largest technology and consulting firm in the world, with more than 350,000 employees serving clients in 170 countries.
Product Portfolio: The Company’s portfolio comprises solutions with data & AI, IT solutions, cloud services, Hardware Systems, Servers and Storage software portfolio, finance solutions, cloud security solutions etc.
Key Development: On 20th Nov 2019, IBM launched open technology Cloud Pak for security, to speed response to cyber threats across clouds. It helps the capability to hunt industry-first threats across security tools and clouds without moving data.
Mergers and Acquisitions: On 15th June 2020, IBM has completed the acquisition of cloud security startup spanugo to boost compliance. The acquisition of Spanugo technology has demonstrated efficient and transparent cyber security compliance in real time whenever audited and delivering the improvements and adaptation to reduce the further attack.
