Cloud Security Market Size, Share, & Trends Analysis Report By Component (Solution, Services), By Deployment (Private, Public), By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Cloud Security Market Size & Trends

The global cloud security market size was estimated at USD 28.35 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 13.1% from 2023 to 2030. The modern business landscape is populated with an ever-expanding range of cyber risks, ranging from complex malware to ransomware attacks. As organizations digitize their operations and store massive volumes of sensitive data in the cloud, they have become prime targets for criminal actors targeting unlawful access and exploitation. As a result, demand for robust cloud security solutions has increased as enterprises seek protection against data breaches, financial losses, and reputational damage. The capacity of cloud security platforms to proactively identify, react, and mitigate emerging threats has become an essential tool in the ongoing battle against cyber attackers.

The increased adoption of digital transformation initiatives is a major driving factor in the market. As enterprises transfer their operations and data to the cloud to improve efficiency and agility, the demand for complete security measures to protect sensitive data and ensure the secure implementation of digital strategies is increasingly essential.A shift toward more user-centric security measures will characterize the future of cloud security.Artificial intelligence (AI) and machine learning (ML) are increasingly integrated into cloud security solutions to improve threat detection capabilities. These systems examine movements, anomalies, and user behaviors to predict feasible security incidents. Organizations aim to strengthen their overall security posture by adopting AI-driven threat detection.

The worldwide character of modern business operations, along with the increasing popularity of remote labor, has widened the limits of corporate networks. Traditional security procedures are becoming less effective with the rising geographical variety and the use of varied technologies. Cloud security solutions provide scalable and adaptable security customized for dynamic and scattered traits of modern work environments. The adoption of cloud security solutions is hindered by resistance to cultural shifts and change within organizations.

Employees and management teams still need to be more resistant to moving away from old security models and toward more complex and dynamic cloud security solutions. The ever-changing nature of cyber threats presents challenges to the cloud security business. Organizations are encountering pressure to keep up with evolving security measures as threats continue to evolve. The widespread adoption and advancement of zero-trust security models are expected to shape the cloud security landscape over the forecast period.

Businesses are adopting a variety of cloud architectures to fulfill specific operational requirements, and security solutions are adaptive and provide consistent protection across several cloud platforms. The increasing number of hybrid and multi-cloud configurations will determine cloud security over the forecast period. The necessity for quantum-safe encryption has grown in importance in the cloud security landscape with the advent of quantum computing. Quantum-safe cryptographic methods resist quantum attacks, protecting sensitive data's long-term security.

Component Insights

The solution segment held the largest market share of 68.4% in 2022. As the digital environment becomes more advanced, hackers develop innovative and complex methods for attacking. As a result, businesses are forced to implement comprehensive cloud security solutions with multi-layered protections. These solutions include various tools and technologies such as encryption, identity and access management, data loss prevention, threat intelligence, end-point protection, and security analytics. The solution segment addresses complexity by providing unified frameworks that connect smoothly with various IT infrastructures.

The services segment is projected to grow at a CAGR of 14.5% over the forecast period. The increasing frequency of cyber threats has raised awareness among enterprises about the significance of robust safety protocols. Cloud security services provide a proactive defense against various cyber threats while focusing on threat intelligence, identification, and response. The future expansion of the services segment is strongly connected to its capacity to integrate cutting-edge technology into cloud security frameworks. Cloud security services harness the power of technological innovation, from artificial intelligence (AI), behavior analytics, predictive analytics, and machine learning (ML) for identifying patterns to automation for rapid response to incidents.

Deployment Insights

The private segment held a market share of 47.1% in 2022 and is expected to dominate the market by 2030. This segment growth can be attributed to organizations operating mission-critical applications and workloads to ensure the most effective reliability and speed. Many businesses see private cloud deployment as a milestone toward digital transformation. The migration of conventional on-premises infrastructure to an exclusive cloud setting allows enterprises to gain the benefits of the cloud while preserving a high level of control. The growth of cooperative security ecosystems, in which multiple security technologies and platforms smoothly integrate and exchange information on threats, will be witnessed over the forecast period.

The hybrid segment is expected to grow significantly at a CAGR of 13.5% over the forecast period. The growth of the hybrid segment can be attributed to organizations that are increasingly realizing the value of strategic data management. Hybrid cloud solutions provide strategic data placement with the ability to store and process data where the decision makes the optimal economic sense, depending on considerations such as performance, legal compliance, and pricing. A hybrid cloud setup enables enterprises to expand their business activities globally without impacting performance or reliability.

Enterprise Size Insights

The large enterprises segment held a market share of 75.5% in 2022 and is expected to dominate the market by 2030. The segment growth can be attributed to the utilization of cloud-native security solutions that are customized to the dynamic and adaptable nature of cloud environments. As enterprises continue to transfer their activities to the cloud, there will be an increasing need for security measures that interact smoothly with cloud architectures. Large enterprises, which frequently operate in highly regulated industries, are prioritizing accurate compliance management in cloud security planning. A constant cycle of evaluation and modification will dictate the future market for large organizations in the market. The continuous procedure will be essential for maintaining an adaptive security posture in the face of changing technological risks.

The small & medium enterprises (SMEs) segment is expected to have the fastest growth at a CAGR of 15.5% over the forecast period. The growth of the small & medium enterprises segment can be attributed to the growing awareness of the possible hazards associated with cyber threats, which has resulted in SMEs prioritizing cybersecurity. The high-profile nature of cyberattacks and the increasing frequency of events have highlighted the necessity for proactive security measures. Cloud security solutions include managed services, allowing SMEs to use the experience of external security professionals. The strategic outsourcing of security operations enables SMEs to improve their security postures without the need for massive internal resources, leading to the rise of the SMEs segment in the market.

End-use Insights

The IT & telecom segment held a market share of 16.3% in 2022 and is expected to dominate the market by 2030. The growth of the IT & telecom segment can be attributed to its operation in highly dynamic and complex IT environments that include a plethora of software, networks, and devices. Cloud security solutions provide the flexibility and adaptability essential to react to the ever-changing IT infrastructure landscape while maintaining demanding security policies. In the IT and telecom sectors, the growth of IoT devices and 5G poses novel threats to security. Security measures for the cloud will need to evolve to safeguard the broad array of connected devices, protect private information, and ensure the integrity of IoT networks.

Healthcare segment is expected to grow at a CAGR of 15.3% over the forecast period. The continued expansion of telehealth services will significantly impact the future trajectory of healthcare in the market. Cloud security solutions will be crucial to providing secure remote patient consultations as telehealth becomes an integral component of healthcare delivery. Developing linked medical equipment on the Internet of Medical Things (IoMT) poses new security concerns. Cloud security solutions must evolve to secure a wide range of medical equipment, from portable health trackers to implanted sensors, while maintaining the security of patient-generated medical information.

Regional Insights

The North America regional market dominated the market with a share of 34.0%.North American organizations are increasingly proactive in developing robust security measures, owing to heightened awareness of cybersecurity dangers. North America, primarily the U.S., holds massive economic power and is a global leader in various areas, including science and technology, banking, and healthcare. The strategic relevance of securing important assets and maintaining a powerful cybersecurity position in the region has increased the importance of cloud security solutions. Businesses in North America have adopted advanced cloud security solutions due to a cultural preference for embracing innovation and reducing risks.

Asia Pacific is anticipated to rise as the fastest-developing regional market at a CAGR of 14.8%. The growth of the Asia Pacific (APAC)  market can be attributed to a plethora of enterprises with cross-border activities. Cloud security solutions offer an integrated and modular approach to security across multiple geographical locations, assisting enterprises in managing the complex nature of cybersecurity.

The APAC area is projected to experience growth in demand for managed security services due to the multifaceted nature of the cybersecurity landscape. Businesses will seek exhaustive, outsourced services that provide 24/7 monitoring, incident management, and expert navigation guidance for a volatile security ecosystem properly.

Key Companies & Market Share Insights

The key players in the market are investing resources in research & development activities to support growth and enhance their internal business operations. The report will include company analysis based on the financial performances, product benchmarking, key business strategies, and recent strategic alliances. Companies can be seen engagingin mergers & acquisitions and partnerships to upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development and enhancement of existing products to acquire new customers and capture more market shares.

For instance, in October 2023, Palo Alto Networks, Inc. entered into an agreement to acquire Dig Security, a provider of Data Security Posture Management (DSPM). Palo Alto Networks aims to enhance security measures and protect against external and internal threats through this collaboration. Moreover, the firms’ combined aim is to monitor, classify, and identify sensitive data across all cloud data stores and control multi-cloud data.

Cloud Security Market Report Scope

Global Cloud Security Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global cloud security market report based on component, deployment, enterprise size, end-use, and region:

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Solution

    • Cloud Access Security Broker (CASB)

    • Cloud Detection and Response (CDR)

    • Cloud Security Posture Management (CSPM)

    • Cloud Infrastructure Entitlement Management (CIEM)

    • Cloud Workload Protection Platform (CWPP)

  • Services

    • Professional Services

    • Managed Services

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • Private

  • Hybrid

  • Public

• Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • BFSI

  • Retail & E-commerce

  • IT & Telecom

  • Healthcare

  • Manufacturing

  • Government

  • Aerospace & Defense

  • Energy & Utilities

  • Transportation & Logistics

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa