"Smart Strategies, Giving Speed to your Growth Trajectory"
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 2022-2029. North America dominated the global market with a share of 40.40% in 2021.
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.
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.
Request a Free sample to learn more about this report.
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.
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.
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.
To know how our report can help streamline your business, Speak to Analyst
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.
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.
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.
North America Cloud Security Market Size, 2021 (USD billion)
To get more information on the regional analysis of this market, Request a Free sample
North America is anticipated to hold a major cloud security 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.
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.
To know how our report can help streamline your business, Speak to Analyst
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 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.
An Infographic Representation of Cloud security Market
To get information on various segments, share your queries with us
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.
Value (USD billion)
Security Type, Enterprise Size, End-User, and Region
By Security Type
By Enterprise Size
Fortune Business Insights says that the global market size was USD 29.26 billion in 2021 and is projected to reach USD 106.02 billion by 2029.
In 2021, the North America market value stood at USD 11.82 billion.
The market will exhibit steady growth of 18.1% CAGR during the forecast period (2022-2029).
The identity and access management segment is expected to be the leading segment in this market during the forecast period.
Increased adoption of cloud solutions and services to store critical business data are some of the factors contributing to the growth of the market.
Microsoft Corporation, Cisco Systems, Inc., IBM Corporation, Palo Alto Networks, Inc., Broadcom Inc. and others are the major players in the global market.
North America dominated the market share in 2021.
Growing adoption of network security services in government departments to drive the market growth.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- Global hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry