Cloud Security Market Size, Share, Trends & Industry 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, 2024-2032

The global cloud security market size was valued at USD 37.87 billion in 2023. The market is projected to grow from USD 43.74 billion in 2024 to USD 156.25 billion by 2032, exhibiting a CAGR of 17.3% during the forecast period. North America dominated the global cloud security market with a share of 39.32% in 2023.

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.

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 impact of COVID-19 is expected to result in considerably high growth of this market during the analysis period. This is attributed to the significant acceleration in the adoption of cloud security solutions supported by escalated adoption of cloud-based solutions.

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.

Cloud Security Market 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.

Containerization has become increasingly popular for deploying and managing applications in the cloud due to its scalability, portability, and efficiency. As more organizations embrace containerization technologies, such as Docker and Kubernetes, the demand for managed container services with built-in security features has grown. While containers offer numerous benefits, they also introduce new security challenges, such as container escape vulnerabilities, image security, and network security concerns. Managed container services address these challenges by providing integrated security features, such as container image scanning, runtime protection, and network segmentation.

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Cloud Security Market Growth Factors

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

One of the key drivers fueling 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, cloud workloads are highly dynamic, with instances being spun up and down rapidly in response to changing demand. Traditional security approaches based on perimeter defenses and static policies are insufficient for securing dynamic cloud environments. Cloud security solutions leverage automation, machine learning, and behavioral analysis to adapt to the dynamic nature of cloud workloads and detect and respond to security threats in real time.

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.

Cloud Security Market Segmentation Analysis 

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.

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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

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North America is anticipated to hold a major market share. 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.

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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.

List of Key Companies in Cloud Security Market

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.

LIST OF KEY COMPANIES PROFILED:

• Trend Micro Incorporated (Japan)


• Cisco Systems, Inc. (U.S.)


• McAfee, Inc. (U.S.)


• Palo Alto Networks, Inc. (U.S.)


• Check Point Software Technologies (Israel)


• Microsoft Corporation (U.S.)


• IBM Corporation (U.S.)


• Splunk Inc. (U.S.)


• Alphabet Inc. (U.S.)


• Amazon.com (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024 – Check Point Software Technologies launched a novel Infinity AI Copilot platform. It helps IT teams enhance cloud technologies' efficiency by leveraging AI technology.


• October 2023 – Palo Alto Networks acquired Dig Security, a cloud data security startup company, for USD 400 million. With this acquisition, the company aims to integrate Dig’s data security posture management (DSPM) technology into its Prisma Cloud platform.


• September 2023 – Check Point Software Technologies acquired Atmosec, a provider of SaaS Security solutions. With this acquisition, the company aims to enhance its SaaS security offering to support SaaS applications.


• May 2023 – Cisco Systems, Inc. announced its plans to acquire Lightspin Technologies Ltd., a cloud security software company. This acquisition will help Cisco to provide end-to-end cloud security by incorporating cloud security posture management (CSPM) into cloud-native resources.


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

REPORT COVERAGE

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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.

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