Cloud Security Market Size, Share & COVID-19 Impact Analysis, By Application (Identity and Access Management, Email and Web Security, Data Encryption and Prevention), By Security Type (Workload Security, Network Security, Platform Security), By Enterprise (Large Enterprises, SMEs), By Deployment (Public, Hybrid, Private), By End-User (IT and Telecom, BFSI, Healthcare and Life Sciences, Manufacturing), and Regional Forecast, 2020-2027

The global cloud security market size was USD 578.4 million in 2019 and is projected to reach USD 1,545.6 million by 2027, exhibiting a CAGR of 13.2% during the forecast period.

Cloud security refers to a set of solutions and policies that are implemented to protect cloud-based systems, networks, and infrastructure. These security measures are configured to protect data available on an organization’s cloud and meet security compliance. According to a report published by the Selfkey Foundation, State of the breach June 2020, approximately 16 billion records including critical information such as residential addresses, credit card details, and other sensitive data have been exposed to vulnerable threats since 2019. Therefore, the need for security solutions has grown exponentially in recent years. There has been a significant rise in the data breaches and security attacks, since businesses have shifted to remote operations due to COVID-19. Due to factors like the proliferation of smartphones and a wide base of Internet users, the market is expected to continue on a healthy path through the forecast period.

However, the increased adoption by small and medium-sized enterprises of host environments and the growing concerns for data and information security are driving the growth of the market. Concepts such as Bring-Your-Own-Device (BYOD), Internet of Things (IoT), and others are also generating security problems providing ample opportunities for solution providers.

Cloud Security to Witness a Surge in Demand During COVID-19 Pandemic Owing to the Preferential Shift towards Cloud and Remote Technologies

In early 2020, the world addressed the spread of COVID-19, and businesses switched to a fully remote work environment with an incredibly limited timeline. This situation had a downstream impact on security teams who had to face drastic shifts in their environment unexpectedly and dramatically. Companies are moving more business-critical workloads than ever before into the cloud, but increased cloud use has created new blind spots as IT and cloud service providers struggle to grasp individual data securing responsibilities. Such uncertainty has helped IT security teams to fight against a rising threat.

COVID-19 has pushed demand to the nosebleed level for cloud-based remote access devices. Although most IT and information security leaders are now concentrated on remote access and protecting it, there is an equally troublesome problem: cloud programs are back to vengeance after a temporary slowdown due to the COVID-19. While the COVID-19 crisis is emerging, it presents a host of opportunities for security solution providers, as most of the IT and technology firms are moving towards cloud.

LATEST TRENDS

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Increasing Focus on Business, Data, and Cloud Privacy and Need for Effective Security Measures Driving a Holistic Approach to Enterprise Security

Over the past years, companies have faced a growing challenge, while data threat and breaches have continued to escalate at unprecedented speed. This conundrum drives the need for business executives and security experts to work closely together to resolve issues related to cloud security, business risk and data privacy in a comprehensive way, as well as verify that security controls provide the necessary protection of sensitive assets. With the expansion of vast amounts of sensitive data being transferred into the cloud, security issues have gone up, as cyber attackers are a real threat. Companies which are too close to cloud-based models are now more likely than ever to face various cyber threats. Therefore, increased amount of data being transferred to cloud models and emergence of strong security standards has created ample opportunities for businesses and key players.

DRIVING FACTORS

Increased Adoption of Cloud Solutions and Services to Store Critical Business Data will Emerge in Favor of Market Growth

Cloud-based platforms provide several advantages over conventional computing systems. Some of the advantages are ease of upgrading, smooth integration, availability and easy use. Considering the advantages of cloud storage over conventional storage, large organizations operating globally prefer cloud storage services. In addition, businesses in sectors like insurance, finance, healthcare and e-commerce are heavily dependent on and globally extended through their websites and online services. Therefore, cloud computing services aim to increase efficiency and to reduce costs.

The businesses belonging to these sectors must also adhere to strict regulations and target data theft which can lead to severe fines, loss of reputation and loss of customers. Therefore, these companies introduce cloud protection strategies to align migration to cloud storage with adequate security. Thus, the shift towards cloud computing models continues to be a significant driver for the market.

Growing adoption of Cloud Services in Government Departments to Aid Growth

There have been several data breaches in recent years, which culminated in a substantial amount of personal information and identities being revealed. Following thorough studies of the root causes, it has become clear that sensitive data on the decaying infrastructure allows actors with catastrophic intentions to access both new attack tactics and tried and tested methods. These solutions help businesses and government authorities to secure their data on cloud platforms and retrieve it whenever needed.

The increasing adoption of these solutions and services by government agencies is another factor that is driving the market growth. Several government departments such as defense, intelligence and finance are using cloud security services as their data increases and flexibility needs grow. In addition, the increasing autonomy of government officials and the rising need for centralization and other resources contribute to the adoption of cloud services by various government departments.

RESTRAINING FACTORS

Inconsistent Network Connection Issues and Lack of Proper Cloud Standard to Impede Market Growth

The global market is related to some growth inhibitors, given strong drivers and interesting trends. Because these solutions depend on the availability / quality of the computer network, a solid and reliable network connection is one of the key criteria for the effective performance of cloud type of security solutions. Nevertheless, sluggish and inconsistent network connection is a critical problem in some developing regions and some parts of the developed regions. Cloud services and applications are likely to be compromised by the problem of connectivity to the appropriate network connections. In addition, sluggish network links could lead to time lag / latency problems that could interrupt security scanning and other procedures. 

SEGMENTATION

By Application Analysis

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Email and Web Security Segment to Register a High CAGR During the Forecast Period

Based on application, the market is segmented into Cloud Identity and Access Management (IAM), Email and Web Security, Data Encryption and prevention, Threat Intelligence, Monitoring and Prevention, and Others (Firewalls, Operations Management, etc.).

The email and web security segment accounted for the largest market share and is expected to maintain its dominance throughout the forecast period. The rapid growth of public cloud infrastructure, remote workers and BYOD has changed the way and the security of data. In order to distribute spam, malware and other threats, attackers rely on mainly web and email. Safe mail and web services are extremely effective in helping businesses prevent email attacks by enabling real-time identification.

Advanced email protection systems will block threats before entering the server and e-mail user agents of companies. Such solutions separate users and malicious endpoints that can spread across the network and prevent an often difficult integration of software and hardware in a network environment.

Data encryption and prevention is expected to grow at high CAGR during the forecast period mainly owing to the increased adoption of data security solutions among businesses and rising number of data breaches.

By Security Type Analysis

Network Security Segment Dominated the Market in 2019

Based on security type, the market is segmented into workload security, network security, platform security, application security, end-point security, others.

Network security segment is expected to hold the largest market share during the forecast period owing to high adoption of these security solutions for the protection of end-points. To industrial establishments, security against cyber-attacks is increasingly necessary. Industries therefore are looking at designing new machines and during their entire life-cycle for the introduction of cloud network security. Due to the greater penetration of cloud technologies across various vertical industries, in combination with IoT and Industry 4.0 emergence and the growing number of DDoS and data breaches, the market is expected to continue to expand at a substantially high pace.

By Enterprise Size Analysis

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

Based on enterprise size, the market is divided into Large Enterprises and Small and Medium Sized Enterprises (SMEs).

The adoption of security solutions is seemingly high in large scale enterprises. Large companies are widely choosing cloud solutions as security parameters and are expected to make substantial investments in advanced security solutions to ensure optimum safety for their businesses.

The market is highly driven by increasing demand for cloud security solutions from SMEs. SMEs are rapidly adopting cloud technology, owing to the numerous benefits it provides to companies including ease of access, scalability, pay-as-you-utilize policies, and others.

By Deployment Model Analysis

Hybrid Deployment Model Segment to Witness Considerable Growth Owing to Highly Efficient Security Measures

Based on the deployment model, the market is segmented into Public, Hybrid, and Private.

Hybrid deployment model is the most widely adopted model for the deployment mode of cloud based security solutions. Cloud hybrid computing allows businesses to use both public cloud and private cloud models. Cloud hybrid protection includes software-defined networking (SDN), virtualization and distribution of applications across various data centers and hardware devices at any point of the service. Organizations are looking even more for hybrid cloud management, which incorporates all the functionality of conventional applications for network management and data center management with advanced real-time data packet analytics.

By End-User Analysis

IT and Telecommunications Industry to Witness a Widespread Adoption of Cloud based Security Solutions

Based on end-user, the market is divided into IT and telecommunications, Banking, Finance, Security and Insurance (BFSI), Healthcare and Life Sciences, Manufacturing, Retail, Government, Energy and Utilities, and Others.

The adoption of security solutions is expected to be largest in the IT and telecommunications sector. IT and telecommunications companies can host software at significantly less costs than corporate customers themselves using security solutions. With an emerging need for data security platform; businesses are shifting to cloud platforms, thereby creating a huge demand for cloud based security solutions.

Due to the usage of cloud infrastructure in customer data storage and management, the BFSI sector is projected to have a significant market share in 2019. Factors like interoperability, secure storage, among others, have enabled BFSI's industry emphasis on a customer-centered business model and on commercial and wealth digitalization. In addition to this, services such as payment gateways, transfers of electronic funds, digital wallets, and cohesive customer experience in the BFSI industry can play a major part and will make it easier to introduce a general improvement in cloud security solution deployments. Service providers in the market are launching efficient solutions to help businesses store and protect their data efficiently. In August 2020, InteliSecure, a leading security solution provider launched managed data protection service for numerous verticals such as insurance, banks, media and entertainment, and others to efficiently protect their critical data from attacks.

REGIONAL INSIGHTS

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North America has witnessed the highest adoption of security services and solutions and is expected to witness considerable growth during the forecast period, followed by Europe. The economies of North America, which are sustainable and well-established, allow it to invest heavily in R&D activities, thereby contributing to developing new technologies in the security sector. Besides the regulation of increased transparency, higher requirements for capital and new standards in terms of customer treatment and data security, companies in the region are also exposed to increased shareholder pressure in order to increase growth and margins, and new incentives from conventional and non-traditional competitors.

In response to this, many companies use the cloud platform as a business instrument to transform their business models, their products, services and customer experience. Banks and financial companies in the region are moving towards cloud solutions to tackle ever changing security needs, thereby imposing a huge need for security solutions in the region. Additionally, end user verticals are heavily investing in security solutions to address their security needs putting technology as a core business, seeing cloud based security solutions as a strong foundation of growth.

Data breaches and cyber-attacks undermine not only the financial losses, but also the ability of the Asia-Pacific Organizations to trust their consumers and other stakeholders. Several Asia-Pacific organizations are witnessing efficient growth by moving on to cloud protection solutions they have recognized the business advantages they expected.  Given the cloud's promise and risk, organizations in the region are expected to continue investing in cloud adoption processes and procedures, including security projects that protect cloud-specified data.

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Hyperscale cloud services and computing infrastructure have opened up a plethora of opportunities, clearing a path of cloud security solutions uptake at high pace in Latin America and Middle East countries. Meanwhile there has been a rise in interest in other cloud-based technology and applications in the coronavirus pandemic. New cloud services from major providers in the Gulf region drive public cloud industry-supported government programs and the adoption of emerging technology in the Middle East by SMEs.

KEY INDUSTRY PLAYERS

Key Market Players to Enhance their Solution Offerings and Adopt Partnership Strategies to Business Security Needs

Market-leading players such as Microsoft Corporation, CISCO SYSTEMS, INC., IBM Corporation, Palo Alto Networks, Inc., Broadcom Inc. and others are launching innovative offerings owing to promising developments in advanced technologies. On the other hand, the other players are entering into strategic partnerships with several other players to strengthen their market position and achieve strong brand advertising. For instance,

• July 2020 – Quick Heal Technologies, a leading security solution provider launched its next generation of cybersecurity solution for businesses to protect their data breaches. Ne 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.


• March 2018 – McAfee, Inc., a leading security solution provider extended its cloud based security capabilities to secure Microsoft Azure and deliver efficient solutions to secure Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and Software-as-a-Service (SaaS).

LIST OF KEY COMPANIES PROFILED:

• Microsoft Corporation (Washington, United States)


• Cisco Systems, Inc. (California, United States)


• IBM Corporation (New York, United States)


• Palo Alto Networks, Inc. (California, United States)


• Broadcom Inc. (California, United States)


• VMware, Inc. (California, United States)


• QUALYS, INC. (California, United States)


• Trend Micro Incorporated (Tokyo, Japan)


• ZSCALER, INC. (California, United States)


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


• Proofpoint Inc. (California, United States)


• Cloudflare, Inc. (California, United States)


• Fortinet, Inc. (California, United States)


• Foreseeti (Stockholm, Sweden)


• McAfee, Inc. (California, United States)


• Sophos Ltd. (Abingdon, United Kingdom)


• Panda Security (Bilbao, Spain)


• Bitglass, Inc. (California, United States)


• Imperva (California, United States)


• Aqua Security Software Ltd. (Ramat Gan, Israel)


• Barracuda Networks, Inc. (California, United States)

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’ existing Secure SD-WAN Cloud On-Ramp abilities and helps businesses and users establish a secure connection with cloud solutions and cloud applications.


• July 2019 – Barracuda Networks, Inc., a networking, security, and storage solution provider announced the launch of SaaS cloud security solution for Microsoft Azure. This newly launched solution provides end-to-end visibility of public cloud security and is able to tackle cloud data breaches through insider theft and mismanaged credentials.

REPORT COVERAGE

An Infographic Representation of Cloud security Market

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The cloud security market report offers qualitative and quantitative insights on the product and a detailed analysis of market size & growth rate for all possible segments in the market.  Along with this, the report provides an elaborative analysis of market dynamics, emerging cloud security market trends, and competitive landscape.

Key insights provided in the report are the adoption trends of smart helmet solutions by individual segments, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, Porter’s five forces analysis, and business strategies of leading market players, key industry trends, macro, and micro-economic indicators.

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