Cloud Security Market Size, Share & Trends Analysis Report By Application (Financial Services, IT & Telecom, Government, Education, Healthcare), By Company Size, By Solution, By Deployment, And Segment Forecasts, 2018 - 2024

Industry Outlook

The global cloud security market size was valued at USD 4.88 billion in 2016. It is expected to rise at a CAGR of 13.9% over the forecast period. Cloud computing security also known as cloud security incorporates all plans, policies, and execution controls essential to safeguard and protect application data, infrastructure as well as compliance adherence associated with the cloud.

Cloud being a shared and internet-based resource, access control, identity management, privacy, and data protection all fall under the purview of this type of security. It addresses security controls of a hosted environment to safeguard integrity and continuity at various levels including platform, infrastructure, application, and software levels.

The market is anticipated to tread along a healthy growth track over the forecast period owing to factors such as the proliferation of smartphones and a widening base of internet users. Besides these, the growing adoption of hosted environments by small & medium enterprises and rising concerns regarding the security of information and data are stimulating the growth of the market. Developing trends and technologies such as Bring-Your-Own-Application (BYOA), Internet of Things (IoT), and Bring-Your-Own Devices (BYOD) are also creating security challenges.

The market being in its nascent stage is dynamic in nature and is estimated to evolve rapidly over the forecast period. The speed at which numerous industries are accepting hosted infrastructure and changing threat vectors targeting the framework is projected to bolster the demand for security across different verticals over the forecast period.

Security measures encapsulate four basic categories of software including data loss prevention (DLP), intrusion detection/prevention systems (IDS/IPS), identity/access management (IAM), and email security. The market though not standardized yet does fall under the purview of many international and country-specific data protection laws.

Vendors are focusing on the development of new products and technologies by investing heavily in research and development. The technology scenario in the market is changing rapidly with the adoption of web-based communication and IoT.

Application Insights

Based on application, the market is segmented into financial services, IT & telecom, government, education, healthcare, media & entertainment, and others. IT & telecom and financial services are the two largest application segments in the market. They are likely to remain prominent throughout the forecast period.

Increasing requirements of data repositories and the criticality of information stored are revving up the adoption rate of cloud security solutions in both segments. As several governments across the world move towards hosted infrastructure, the demand for these solutions is poised to experience a sharp rise over the coming years.

Company Size Insights

On the basis of company size, the segments reviewed in the report are large enterprises and small & medium enterprises (SMEs). The market is driven by increasing demand from small & medium industries. These organizations are rapidly adopting cloud technology, primarily due to the numerous benefits it provides to users including scalability, ease of access, lower costs, and pay-as-you-utilize policies.

The adoption rate of cloud security is also high in large enterprises. The operations of a majority of large enterprises are based on cloud computing. Besides this, an increasing number of data attacks and the need to update existing legacy security systems are supporting the segment's growth.

Solution Insights

Demand for cloud IAM in the Asia Pacific is expected to grow over the forecast period owing to the increasing adoption of cloud and growing concerns about safety measures. An increasing number of hosting service-specific attacks and surging usage of cloud-based email services, along with consumers’ willingness to reveal personal information, are making it necessary to adopt hosted security solutions.

Cloud services being a shared resource by nature, organizations struggle with identity management, thereby creating a strong demand for identity/access management (IAM) solutions. This factor makes it the largest segment in the global cloud security market and it is followed by the cloud email security segment. The intrusion detection/prevention segment is anticipated to gain traction in the years to come.

Deployment Insights

The report assesses three segments on the basis of deployment, namely public, private, and hybrid. The public segment is the most prominent segment in the market owing to the widespread use of public cloud services. The segment is followed by the private segment. A paradigm shift from traditional computing solutions to cloud computing is contributing to the growth of the private segment. However, hybrid infrastructure is estimated to gain immense popularity over the coming years, thereby providing a significant push to the segment.

Regional Insights

North America was at the forefront of the growth of the market in 2016 and is projected to maintain its position in years to come, followed by Europe. Rapid technological advancements, robust internet infrastructure, and surging adoption of cloud technology are among the key factors contributing to the growth of the region.

The Asia Pacific market accounted for 17.6% of the overall market in 2016 and is likely to witness noteworthy growth over the forecast years owing to the increasing implementation of the technology across different verticals. Rapidly developing infrastructure is also playing an important role in the development of the regional market.

Cloud Security Market Share Insights

Key industry players such as Symantec Corp., CA Technologies, Intel Corp., TrendMicro, and IBM Corp. use technological alliances, partnerships, and collaborations with other companies to maintain competencies. Upgradation of existing products and new product developments to meet industry demands are also the go-to strategies of key market players.

In March 2016, Cisco Jasper and Telular partnered to expand the Internet of Things (IoT) solutions for commercial telematics and security. The partnership integrated the Jasper Control Center IoT service platform with Telular’s SkyBitz and Telguard products to enable telematics providers and security dealers to increase productivity, reduce cost, and deliver new revenue-generating services for their customers worldwide.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2024. For the purpose of this study, Grand View Research has segmented the global cloud security market report on the basis of application, company size, solution, deployment, and region:

• Application Outlook (Revenue, USD Million, 2014 - 2024)

  • Financial Services

  • IT & Telecom

  • Government

  • Education

  • Healthcare

  • Media & Entertainment

  • Others

• Company Size Outlook (Revenue, USD Million, 2014 - 2024)

  • Small & Medium Enterprises

  • Large Enterprises

• Solution Outlook (Revenue, USD Million, 2014 - 2024)

  • Cloud IAM

  • Cloud Email Security

  • Cloud IDS/IPS

  • Cloud DLP

• Deployment Outlook (Revenue, USD Million, 2014 - 2024)

  • Public

  • Private

  • Hybrid

• Regional Outlook (Revenue, USD Million, 2014 - 2024)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa

    • K.S.A

    • U.A.E