Cloud Security Market Size, Share, Trends & COVID-19 Impact Analysis, By Security Type (Identity and Access Management (IAM), Data loss prevention (DLP), Security Information and Event Management (SIEM), Business Continuity and Disaster Recovery, and Others), By Enterprise Size (Large Enterprises, Small and Medium-Sized Enterprises (SMEs), By End-User (IT and Telecommunication, Banking, Finance, Security and Insurance (BFSI), Healthcare and Life Sciences, Manufacturing, Retail, Government, Energy and Utilities, and Others), and Regional Forecast, 2022-2029

The global cloud security market size was valued at USD 29.26 billion in 2021 and is projected to grow from USD 33.13 billion in 2022 to USD 106.02 billion by 2029, exhibiting a CAGR of 18.1% during the forecast (2022-2029). North America accounted for a market value of USD 11.82 billion in 2021. In the study, we have considered various cloud security solutions offered by the market players, including Identity and access management solutions offered by Forgerock, Oracle, and IBM. Symantec, Trend Micro, Trustwave and Digital Guardian offer data loss and prevention solutions. Security information and event management (SIEM) solutions are offered by IBM, Micro Focus, MacAfee and others. Similarly, the business continuity and disaster recovery solutions are offered by Splunk, Rapid7 and others.

The global COVID-19 pandemic has been unprecedented and staggering, with experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a rise of 11.6% in 2020 compared to 2019.

COVID-19 IMPACT  

Security Tools to Gain Traction as Organizations Migrate Workloads from Datacenters and On-Premise to Cloud

The impact of COVID-19 is expected to result in considerably high market growth during the forecast period. This is attributed to the significant acceleration in the adoption of cloud security solutions supported by escalated adoption of cloud-based solutions. The global cloud security market witnessed a humongous growth rate of 11.6% in 2020 compared to 10.8% in 2019.

Software-as-a-service (SaaS) model is projected to disrupt the organization's operating model. Attributed to the COVID-19 impact on the business operations, the use of containers is likely to increase, which will ensure to drive the demand for robust security solutions. The demand for hybrid cloud is on a continuous upward curve attributed to the cloud's scalability and seamless user experience. Further, serverless computing and increasing DevOps efficiencies will likely fuel the market growth.

Similarly, amid COVID-19, organizations have reported migrating more workloads from data centers and on-premises to the cloud. As a result, security concerns are likely to remain high as the adoption of public cloud computing continues to surge amid the COVID crisis, resulting in an accelerated shift towards remote work environments.

The adjacent figure shows global remote working by industry. According to the figure, 87% of employees in the technology & communication sector are most likely to be permitted to work from home and are expected to adopt new software, products and services for remote working. This is likely to pave the way for new revenue opportunities for data privacy revenue vendors.

LATEST TRENDS

Crypto Jacking to Increase the Cloud Security Market Share During Forecast

The varying value of cryptocurrencies tailored with better decision capabilities leads to Crypto-jacking attacks in the cloud. For instance, CoinStomp is a malware comprised of shell scripts that attempt to exploit the cloud compute instances hosted by network security providers for mining cryptocurrency.

The IT security users and the providers have an opportunity to implement the necessary countermeasures. A slowing trend in the exposure of public cloud storage services indicates that organizations are implementing countermeasures to address security concerns. The prevalence of malware attacks such as CoinStomp is likely to drive the adoption of cloud security services such as user and data governance, identity & access management and others.

Adoption of Managed Container Services to Continue to be a Prevailing Trend in Market

In recent years’ container adoption has been exploding across the IT industry. Several organizations are leveraging managed or native Kubernetes orchestration. Enterprises leverage popular managed services in the cloud such as Google Kubernetes Engine, Azure Kubernetes Service, Amazon Elastic Container Service for Kubernetes, and others. Such managed services platforms make it easy for developers to manage, deploy, and scale containerized use-cases.

As container adoption grows, enterprises must ensure appropriate security solutions to prevent security incidents. For instance, pods in the Kubernetes cluster could receive traffic from any source, creating security concerns across the organization. As a result, organizations are likely to apply network policies for their managed Kubernetes services to prevent vulnerable network attacks. Hence, the rise in cyber-attacks is likely to expand the market size.

DRIVING FACTORS

Increased Adoption of Cloud Computing Solutions and Services to Favor Market Growth

One of the key drivers fueling cloud security market growth is the rising implementation of cloud computing. Cyber security solutions are enabled on complex mathematical forecast models to monitor large amounts of data and structured information. The adoption of cloud technology can fulfill this data monitoring in a secure and reliable surrounding.

Major players such as Cisco System, IBM Corporation, and others are dedicated to adopting cloud computing in cyber security solutions. These cloud computing services are based on ‘analytics-as-a-service (AaaS) offerings, assisting end-users to quickly track and control uncertain threats. Moreover, the growth is boosted by the growing demand for massive storage applications to store and secure data with advanced security models.

Furthermore, key companies are adopting cloud-based security solutions. This adoption would assist them in offering full rights to use the confidential information for the entire cross-border operation to its employees. For instance, in December 2019, Fortinet, Inc. amalgamated its security offering with Google’s Cloud platform. This amalgamation allows its users to use the cloud platform for advanced security for their employees and computing applications. Such increasing adoption is likely to expand the market size.

RESTRAINING FACTORS

Budget and Data Privacy to be Significant Market Barriers

With the emergence of advanced security threats and smarter attack tools, the need for advanced IT/network security solutions to deal with such attacks is increasing exponentially. The traditional security solutions of organizations cannot safeguard the enterprises from network, cloud, application, and endpoint security-related threats.

An enormous sum is required for the security providers to develop technologically advanced counterparts. The high cost of such solutions limits their adoption among enterprises, particularly SMEs, to a considerable extent. Also, the capital expenditure of security solution providers increases as the R&D team expands. Other highlighted challenges of the market include data loss/leakage, data privacy/confidentiality, and unauthorized access to security platforms.

SEGMENTATION

By Security Type Analysis

Data Loss Prevention (DLP) to Showcase Significant Growth Rate During Forecast Period

Based on security type, the market is segmented into identity and access management (IAM), data loss prevention (DLP), security information and event management (SIEM), business continuity and disaster recovery, and others (operations management, etc.)

The identity and access management segment accounted for the largest market share and is expected to maintain its dominance throughout the forecast period. Identity and access management (IAM) encompasses several technologies, including multi-factor authentication (MFA), password management, single sign-on (SSO), and profile management. Increasing cloud adoption directly leads to increased adoption of IAM solutions.

Data loss prevention (DLP) is expected to grow at high CAGR during the cloud security market forecast period, mainly due to the increased adoption of data security and network security solutions among businesses due to the rising number of data breaches. DLP is a dedicated set of products that identifies, protects, and monitors critical data in enterprises using fingerprinting, classification, and exact data matching technologies.

Security information and event management (SIEM) and business continuity and disaster recovery solutions are anticipated to increase demand in the coming years. Visibility and risk assessment is likely to drive the demand for SIEM solutions. SIEM has various use cases in the modern threat landscape, including compliance regulations, IoT security, and the prevention of insider threats, among others. Following the endpoint, network, and DLP tools, different cloud security frameworks provide organizations with a holistic approach to implementing security functions.

By Enterprise Size Analysis

Large Enterprises to Derive Growth from Widespread Adoption of Network Security Solutions During COVID-19 Pandemic

Based on enterprise size, the market is divided into large enterprises and small and medium-sized enterprises (SMEs).

Large enterprises have to mandatorily scale their infrastructure to address the requirements and meet new demands raised by the remote workforce. Also, the enterprises need to maintain infrastructure support for their services and products. These are some of the factors expected to contribute to a 21% increase in enterprise cloud spending.  

Small and mid-sized businesses are expected to lower their cloud spending due to a downturn in capital expenditure attributed to decreased demand for products, services and budget inflexibility during the pandemic crisis.

By End-User Analysis

IT and Telecommunications Industry to be a Potential Customer of Robust Security Solutions

Based on end-user, the market is divided into IT and telecommunications, banking, financial services and insurance (BFSI), healthcare and life sciences, manufacturing, retail, government, energy and utilities, and others.

High-performance and low latency 5G networks drive limitless connectivity for mobile applications and connected devices requiring high security and privacy. Telcos are leveraging AI and data analytics benefits from the cloud at a vast scale. As a result, the IT and telecom sector is projected to hold maximum market share.

Cloud adoption is a significant strategy driving digital transformation across the retail industry. The stages of digital retail strategy, including siloed retail, connected retail, analytics-driven retail, and intelligent retail, have fueled the need for robust security solutions.

Cloud computing is changing the healthcare landscape by bringing real-time data processing, backup & business continuity, and health information exchange into everyday practice. Owing to the real-time processing compliance and data privacy has become the priority. Hence, healthcare poses lucrative market opportunities for cloud security companies.

REGIONAL INSIGHTS

North America dominated the global market with a share of 40.40% in 2021. Government authorities and private players in the countries such as the United States, Canada, and others are increasing their investment in security solutions by launching different initiatives and embracing research and development in the existing solution offerings. For instance, in April 2021, MIT Researcher in the U.S. launched new data privacy-focused initiative to address AI-driven analytics and changing attitudes about personal data. It involves collaboration in five distinct technical areas: data privacy, data portability, database systems, AI and machine learning, human-computer interaction, and new information architectures.

Since the outbreak of COVID-19, there has been a significant rise in attacks on virtual private networks (VPN) and remote access. The Infrastructure Security Agency (CISA) and The US Department of Homeland Security (DHS) Cybersecurity mentioned witnessing a massive rise in phishing and ransomware attacks. Thus, the adoption of network security services is expected to rise in the near future across the U.S.

Asia Pacific is expected to grow with the highest CAGR during the forecast period. Government authorities, and private players in the countries such as China, Japan, India, Oceania, South Korea, South East Asia, and others, are increasing their investment in cloud security by strengthening the rules and regulations. For instance, in October 2020, the government of Australia strengthened its privacy law and sought feedback by reforming the Privacy Act 1988. The law focuses on protecting personal information by providing a proportionate and practical framework for implementing the privacy software and promoting good privacy practices. Such government initiatives are likely to support market growth.

Europe has shown immense demand for cyber security solutions and services due to the increasing adoption of IoT-connected devices, growing incidences of cybercrimes, data breaches, and growing data-based technology adoption. Further, strict rules, laws, and regulations for the data protection implemented by the EU governments, such as GDPR, have fueled the demand for security solutions in public and private sectors to meet the government norms across the European countries.

The increasing economic significance value of the security has strengthened national security investments across the Middle East and Africa. Countries such as Oman, Qatar, United Arab Emirates (UAE), Bahrain and others are robustly moving towards digitization in the security and surveillance sector, which is projected to increase the adoption of security solutions.

In April 2021, the Brazilian government launched a toolkit for supporting data protection compliance. The platform provides security and privacy and aims to educate Brazilian professionals working with data processing. Similarly, in September 2020, the Brazilian General Data Protection Law (LGPD) Federal Law was enforced after several discussions and postponements to protect its nationals and their data and privacy by creating a National Data Protection Authority. Such stringent government rules and regulations are likely to create massive demand for advanced security solutions across the region.

KEY INDUSTRY PLAYERS

Key Market Players to Enhance their Solution Offerings and Embrace Partnership to Increase Market Share

Market-leading players such as Microsoft Corporation, Cisco Systems, Inc., IBM Corporation, Palo Alto Networks, Inc., Broadcom Inc., and others strive to upgrade their product offerings by strengthening by integrating advanced technologies. Other players are entering into strategic partnerships to consolidate their market position and gain a competitive edge.

• August 2021 – Check Point Software Technologies Ltd. acquired Avanan's cloud email security company. This acquisition will help Check Point Software deliver a secure email security offering and further help protect the remote workforce from malicious collaboration suites, files, URLs, and Phishing across email and network.


• July 2020 – Quick Heal Technologies launched its next cybersecurity solution for businesses to protect their data breaches. The security solution launched by the company incorporates cloud-based email security, data protection and privacy suits, and others that enable businesses to remain safe from potential data breaches and security attacks.

LIST OF KEY COMPANIES PROFILED:

• Trend Micro Incorporated (Tokyo, Japan)


• Cisco Systems, Inc. (California, U.S.)


• McAfee, Inc. (California, U.S.)


• Palo Alto Networks, Inc. (California, U.S.)


• Check Point Software Technologies (Tel Aviv-Yafo, Israel)


• Microsoft Corporation (Washington, U.S.)


• IBM Corporation (New York, U.S.)


• Splunk Inc. (California, U.S.)


• Alphabet Inc. (California, U.S.)


• Amazon.com (Washington, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2020 – Fortinet Inc. announced the launch of a new security solution for Multi-Cloud, Fortinet Secure SD-WAN. This solution complements the company’s existing Secure SD-WAN Cloud On-Ramp abilities and helps businesses and users establish a secure connection with cloud solutions and cloud applications.


• July 2021 – Microsoft Corporation acquired CloudKnox Security. This acquisition will help Microsoft offer cloud entitlement management and unified privileged access.

REPORT COVERAGE

The global market research report includes qualitative and quantitative insights on the product and a detailed analysis of market size & growth rate for all possible segments in the market.  The report elaborates on market dynamics, emerging trends, and competitive landscape. Key insights provided in the report are the adoption trends of cloud security solutions by individual segments, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, and business strategies of leading market players, key cloud security market trends, macro, and micro-economic indicators.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2018-2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022-2029
Historical Period	2018-2020
Unit	Value (USD billion)
Segmentation	Security Type, Enterprise Size, End-User, and Region
By Security Type	Identity and access management Data loss prevention (DLP) Security information and event management (SIEM) Business continuity and disaster recovery Others (Risk and Compliance Management, etc.)
By Enterprise Size	Large Enterprises Small and Medium-Sized Enterprises (SMEs)
By End-user	IT and Telecommunications Banking, Finance, Security and Insurance (BFSI) Healthcare and Life Sciences Manufacturing Retail Government Energy and Utilities Others (Energy and Utilities, Government, Others)
By Geography	North America (Security Type, Enterprise Size, End-User, and Country) U.S. (By Security Type) Canada (By Security Type) Europe (Security Type, Enterprise Size, End-User, and Country) U.K. (By Security Type) Germany (By Security Type) Italy (By Security Type) France (By Security Type)  Spain (By Security Type) Russia (By Security Type)  Benelux (By Security Type)  Nordics (By Security Type)  Rest of Europe Asia Pacific (Security Type, Enterprise Size, End-User, and Country) China (By Security Type) Japan (By Security Type) India (By Security Type) South Korea (By Security Type) ASEAN (By Security Type) Oceania (By Security Type) Rest of Asia Pacific Middle East & Africa (Security Type, Enterprise Size, End-User, and Country) Turkey (By Security Type) GCC (By Security Type) North Africa (By Security Type) South Africa (By Security Type) Rest of the Middle East & Africa Latin America (Security Type, Enterprise Size, End-User, and Country) Brazil (By Security Type) Argentina (By Security Type) Rest of Latin America