The Cloud Security Market is projected to reach $83.03 billion by 2029, at a CAGR of 13.1% from 2022 to 2029. The growth of the cloud security market is driven by the growing significance of cloud security solutions in the BFSI sector, the growing sophistication of cyberattacks and cyber espionage, the rising number of cloud security regulations, and the growing adoption of the BYOD trend. Furthermore, the development of smart infrastructure and the growing need for cloud security solutions among SMEs are expected to offer significant growth opportunities for the cloud security market. However, a lack of visibility/control and misconceptions & lack of knowledge regarding cloud security solutions restrain the growth of this market.
Impact of COVID-19 on the Cloud Security Market
The COVID-19 pandemic adversely impacted the global economy. Nationwide lockdowns and social distancing norms were imposed across several countries, which negatively affected multiple industries, including the cloud security industry. Uncertainty regarding the duration of the lockdowns made it difficult for the key market players to anticipate the recovery of the cloud security market. Numerous cloud security providers were under immense pressure across various fronts due to the COVID-19 pandemic.
However, economies are recovering rapidly, and there is an increase in smart infrastructure development and the adoption of cloud security solutions in the BFSI sector, which is expected to offer significant growth opportunities for players operating in the cloud security market. Furthermore, several businesses are increasingly adopting cloud security solutions. Local governments are also undertaking several relief steps to mitigate the negative impacts of the COVID-19 pandemic. Thus, these factors are expected to enable the recovery of the cloud security market by 2023.
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The Rising Adoption of Cloud Security Solutions is Expected to Offer Significant Growth Opportunities
In recent years, there has been significant adoption of cloud-based deployments among organizations. Leading industry experts expect this trend to continue over the coming years. Organizations are moving their workloads to the cloud to gain more agility, reduce time to market, and lower expenses.
Additionally, advanced technologies, such as the IoT and Industry 4.0, have contributed to the increase in the data stored on the cloud. With the emergence of the BYOD and WFH trends and the increasing internet penetration across new markets, organizations are progressively inclined toward using cloud solutions, driving the need for cloud security.
However, organizations’ transition to cloud servers has resulted in a surge in cyberattacks. For instance, cloud-based attacks rose by 630% between January and April 2020. Furthermore, in 2020, 39% of healthcare organizations suffered ransomware attacks in the cloud. Thus, cloud security has emerged as an effective way for organizations to minimize security issues. Some of the cloud security issues are as follows:
- Unauthorized access to application functionality or data
- Exposed cloud services due to misconfiguration
- Hijacking of user accounts because of poor encryption and identity management
- Data leakage from insecure APIs or other infrastructure endpoints
- Distributed denial of service (DDoS) attacks due to poorly managed resources
Thus, cloud security has become vital for protecting organizations transitioning to the cloud against cyberattacks. Organizations are now opting to deploy cloud-level security monitoring for both public and private clouds to facilitate vulnerability detection for IoT devices. Thus, the benefits of cloud security solutions & services have encouraged their wide-scale adoption, which has become a notable trend in the cloud security market.
Key Findings in the Cloud Security Market Study:
Based on Component, in 2022, the Solutions Segment is Expected to Dominate the Cloud Security Market
Based on component, in 2022, the solutions segment is expected to account for the larger share of the cloud security market. The increasing focus on solution-centric security capabilities, the increasing number of cybercrimes and cyber espionage, and the increasing R&D investments to improve cloud security solutions are some of the factors driving the growth of this segment. In addition, the benefits offered by cloud security solutions, such as advanced threat detection, data security, and regulatory compliance, contribute to this segment's growth.
Based on Security Type, the Network Security Segment is Projected to Register the Highest CAGR
Based on security type, the network security segment is projected to register the highest CAGR during the forecast period. Factors such as the rising number of data & security breaches, the increasing demand for filtering & monitoring network traffic, the growing need for network security and privacy, and the rising need to protect connected network infrastructure are expected to drive the growth of this segment.
Based on End User, the Healthcare Segment is Projected to Register the Highest CAGR
Based on end user, the healthcare segment is expected to register the highest CAGR during the forecast period. The rising adoption of telemedicine devices and remote healthcare services, the rising number of cyberattacks, and the increasing need for securing connected medical devices and effective cloud security measures are expected to support the growth of this segment.
Asia-Pacific: The Fastest-growing Regional Market
In 2022, North America is expected to account for the largest share of the cloud security market, followed by Asia-Pacific, Europe, Latin America, and the Middle East & Africa. However, Asia-Pacific is slated to record the fastest growth rate during the forecast period. The high penetration of connected devices, growing cybercrimes, presence of prominent cloud security key players, and growing awareness regarding cloud security among small and medium-sized organizations are expected to support the market growth in the region during the forecast period.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by the leading market participants in the cloud security industry over the last four years . The key players profiled in the global cloud security market are Microsoft Corporation (U.S.), IBM Corporation (U.S.), Checkpoint Software Technologies, Ltd. (Israel), Broadcom, Inc. (U.S.), Palo Alto Networks, Inc. (U.S.), Cisco Systems, Inc. (U.S.), McAfee, LLC. (U.S.), Fortinet, Inc. (U.S.), Imperva, Inc. (U.S.), Cloudflare, Inc. (U.S.), Aqua Security Software Ltd. (Israel), Qualys, Inc. (U.S.), Tenable, Inc. (U.S.), Netskope, Inc. (U.S.), and CrowdStrike, Inc. (U.S.).
Scope of the Report
Cloud Security Market, by Component
- Solutions
- Identity & Access Management
- Data Loss Prevention
- Security Information and Event Management
- IDS/IPS
- Encryption
- Risk and Compliance Management
- Other Solutions
- Services
- Professional Services
- Managed Services
Cloud Security Market, by Security Type
- Network Security
- Application Security
- Endpoint Security
- Other Security Types
Cloud Security Market, by Deployment Mode
Cloud Security Market, by Service Model
Cloud Security Market, by End User
- Government
- BFSI
- IT & Telecom
- Healthcare
- Retail
- Aerospace & Defense
- Manufacturing
- Energy & Utilities
- Other End Users
Cloud Security Market, by Geography
- North America
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Singapore
- South Korea
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
Key questions answered in the report:
