Zero Trust Security Market Size, Share & Trends Report

Zero Trust Security Market Size, Share & Trends Analysis Report By Deployment (Cloud, On-premises), By Security Type (Network, Endpoint), By Application Area, By Organization Size, By Authentication, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jul, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-292-1
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 140

Report Overview

The global zero trust security market size was valued at USD 19.8 billion in 2020 and is expected to register a compound annual growth rate (CAGR) of 15.2% from 2021 to 2028. The proliferation of endpoint devices, coupled with the rising adoption of cloud technology, has triggered the need for implementing a zero-trust security framework. Lately, businesses are thriving on networking technology and computerized systems, which are prone to attack and vulnerable to unauthorized access. Moreover, the remote working policies, due to the COVID-19 pandemic, have further raised the need for a secured architecture framework that would enforce multi-factor authentication for accessing crucial data. Thereby, the need to secure complex networks, increase network administration visibility, and combat the internal and external threat from unauthorized access is driving the demand for security solutions and is expected to boost the market growth over the forecast period.

U.S. zero trust security market size, by security type, 2017 - 2028 (USD Billion)

The continued evolution in technologies and internet connectivity over the years has increased the potential impact of internal and external threats. The assessment of reported attacks and intrusions suggests an increase in records-exposed rate and data breaches over the years. Furthermore, attacks, such as WannaCry ransomware, have become complex and disruptive, enabling unauthorized access and resulting in data and revenue loss. With an average cost of USD 4 million incurred from a data breach in a company, vulnerability assessment tools have become essential to scan and identify internal and external vulnerabilities. With the changing landscape of cyber attacks and the related consequences, investments in emerging technologies, such as analytics and Artificial Intelligence (AI), are growing in the vulnerability assessment industry. Furthermore, with continued efforts toward spending on innovative vulnerability management solutions, a downward trend in malicious attacks has been observed. This suggests that the end-users are more prepared for tackling vulnerability attacks, and with the increased investments as an effort toward security strategy, the zero-trust security market is expected to register significant growth over the forecast period.

The lack of in-house skilled professionals is propelling organizations to outsource security services. Security services for implementing a zero-trust security model allow professionals to assist in delivering security protection as a Security-as-a-Service (SaaS) model without any requirements for additional staffing and hardware. Organizations are struggling to keep their network secured owing to the rapidly evolving Wide Area Network (WAN) environment and the growing complexity of enterprise networks. The need for more vigilant attempts to secure enterprise networks and ensure multi-layered security is driving the adoption of solutions offered to implement a zero-trust security model.

The COVID-19 pandemic has helped enterprises realize the importance of a zero-trust environment to secure their crucial data. The IT security environment has changed drastically with employees working remotely using vulnerable networking infrastructure. This has posed difficulty across enterprises to maintain a network perimeter-centric view of security, thereby allowing tech-savvy hackers to target unsecured systems with phishing attacks. The implementation of a zero-trust security approach ensures that only authorized persons have a distinct level of access, which is assessed continuously without adding friction for the user. As the pandemic has drained enterprises of their target revenues for the year 2020 - 2021, the investment has been comparatively lower than expected by solution providers. However, post the pandemic, companies are looking forward to continuing working remotely and would be investing heavily in implementing the zero trust architecture.

Security Type Insights

The endpoint security segment dominated the market in 2020 accounting for a revenue share of more than 27%. The demand for implementing a zero trust model for endpoints can be attributed to the digital transformation of businesses, which has increased the usage of devices, such as mobiles, laptops, personal computers, servers, and routers. To secure endpoints, the Virtual Private Network (VPN) capabilities are required to be transparent to users without manual intervention for logging and connecting. Securing endpoints with zero-trust has been increasingly adopted by enterprises as the same stringent security policies are applied regardless of the device being corporate-owned or personal through Bring Your Own Device (BYOD). Furthermore, security policies apply to devices despite them being secured or completely managed by IT or apps only.

The cloud security segment is anticipated to register a significant CAGR from 2021 to 2028. The demand for zero-trust cloud security is driven by the increasing adoption of cloud technology across industries. The retail, IT &telecom, healthcare, and manufacturing industries are gradually shifting to cloud infrastructure as it provides more agility and scalability and is cost-effective to maintain. However, the threat to data from unauthorized access posed on the public cloud has affected the adoption rate of the cloud infrastructure. The enterprises moving to the cloud with security are adopting the zero trust model to ensure a smooth transition and multi-layered security. This is expected to boost the segment growth over the forecast period.

Deployment Insights

The on-premises deployment segment held the largest revenue share of more than 77% in 2020 and is also estimated to register the fastest CAGR from 2021 to 2028 due to a high preference for this type of deployment. Organizations prefer to keep confidential data in-house rather than turning it over to a cloud provider. Moreover, on-premises solutions allow hands-on ownership and control of security monitoring, which offers a flexible and adaptive security program. This is expected to increase the demand for on-premises deployment over the forecast period.

However, enterprises are migrating from on-premises to cloud-based solutions owing to benefits, such as cost-effectiveness. Thus, the cloud-based deployment segment is also expected to register a significant CAGR from 2021 to 2028. Furthermore, organizations are focusing on cloud transformation to provide access to information for in-house and cross-border operations for employees. The increasing adoption of the public cloud is driving the demand for cloud-based safety solutions for a zero-trust security framework.

Organization Size Insights

The large enterprise segment accounted for the maximum revenue share of over 76% in 2020. The segment will retain the dominant position throughout the forecast period due to complex networking, programs, and endpoints of large-scale companies that need robust solutions to safeguard data by continuously validating and recording authentication in real-time. Companies are reliant on only adhering to compliance and entrusting authorized users who are at higher risks of an internal breach. The compliant network does not ensure a secured environment, as the threat to breach is not merely external but also could be by internal trusted sources. The zero-trust security model regards enterprise-authorized users with zero trusts and provides the least privileged access to the users.

The Small & Medium Enterprise (SME) segment is anticipated to register the fastest CAGR over the forecast period. The COVID-19 pandemic affected both large- and small-scale vendors as cases of a data breach increased while employees resorted to the remote working environment. The small- and medium-sized banking, financial institutions, IT, manufacturing, telecom, and retail companies are targeted as they lack robust security solutions. Zero trust security ensures that the user with correct credentials are internal and trusted users and not hackers that rely on phishing and other methods to gain illegitimate access to login credentials. Thereby, the adoption of a zero-trust security model is increasing among SMEs for implementing multi-level authorization verification.

Authentication Insights

The multi-factor authentication segment led the market in 2020 with a revenue share of more than 75% and will expand at the fastest CAGR from 2021 to 2028. Multi-factor authentication was widely adopted across the industry due to the high level of security from multi-level authorization. The zero trust model’s key component in ensuring robust security is multi-factor authentication. It may be convenient for hackers to identify a single credential factor but multiple levels of verification and monitoring of access in real-time are vital in adhering to the zero-trust security model.

With the rising trend of BYOD and the implementation of the remote work policy, users have become mobile and are facing cyber threats from hackers. These sophisticated hackers are on a continuous lookout for a weak network with low-security credentials to breach the digital device. The criticality of multi-factor authentication in the zero-trust security model increases as enterprises are installing more endpoints within their network to expand cloud infrastructure. This is expected to drive the multi-factor authentication segment growth over the forecast period. The single-factor authentication segment is expected to register a moderate growth rate over the forecast period.

The method of single-factor authentication only verifies users with one credential, such as password or OTP against the username. In such a mode of authentication, it is crucial to use a combination of letters, cases, numeric values, and symbols to ensure that a strong password is generated as it increases the complexity and time required by hackers to use permutation and combination for accessing the credential. However, the users often use simple credentials based on their personal identity information, such as date and year of birth or name, which reduces the security level. Hence, single-factor authentication is used in combination with other factors, which is driving the segment.

Application Area Insights

In 2020, the IT and telecom segment accounted for the highest revenue share of more than 48% in 2020 and will retain the leading position throughout the forecast period. Increased preference for cloud-based infrastructure and digital applications to procure information and facilitate business are driving the need for unified, secure access, and network solutions. In addition, the incumbents in the telecom industry primarily provide services related to data transfer and spend on several security-related technologies. With the increasing awareness about the benefits and applications of zero-trust security, the adoption of this model is expected to grow significantly.

Global zero trust security market share, by application area, 2020 (%)

 The healthcare segment is expected to register the fastest CAGR over the forecast period. Continued innovation and implementation of technologies, such as telehealth services and analytics, to facilitate effective communication between end-users and entities are driving the need for secure network infrastructure services. Moreover, the increasing instances of cyber-attacks across healthcare IT infrastructures created the need for an advanced security framework for protecting critical information. These factors are expected to accelerate the demand for zero-trust security in the healthcare sector.

Regional Insights

North America dominated the global market in 2020accounting for a revenue share of over 37% and is expected to register a significant CAGR from 2021 to 2028. The rising demand for solutions pertaining to the zero trust security model due to the increasing security spending by the government and public authorities will drive the regional market. Furthermore, the increased adoption of the Internet of Things (IoT), AI, and digital technology by SMEs and large enterprises and the increasing stringency in standards and policies for maintaining data privacy and security are contributing to the regional market growth.

On the other hand, Asia Pacific is expected to exhibit the fastest CAGR from 2021 to 2028. The need to monitor the access to secure networks from unwarranted data breaches across public, financial, healthcare and e-commerce enterprises is driving the regional market growth. Multiple instances of data breaches and related consequences have increased the demand for threat hunting services. For instance, in May 2020, two million voters’ private data was made available for sale on the dark web, along with a threat to further sell the data of 200 million voters.

The threat hunting is still in process to identify the source of the data breach led by unauthorized access. Furthermore, as per the 2020 Network Readiness Index (NRI), the scores for secure internet servers in Asia Pacific countries, such as Malaysia, Singapore, and Thailand, are not at par compared to other Asian countries, such as China, Japan, and South Korea. Thus, with the consequences of severe threats across servers and database networks, the demand for solutions ensuring zero-trust security implementation is expected to augment over the forecast period.

Key Companies & Market Share Insights

The major players in the market are capitalizing on the changing internal and external IT security landscape. The vendors offering security solutions for cybersecurity are also providing authorization and other security solutions to help enterprises implement a zero-trust security framework. The security vendors are competing to capture higher market shares while the concept of zero trusts is attracting many enterprises to adopt security solutions.

The stiff competition among vendors has resulted in companies opting for business strategies, such as product upgrades, new product launches, and partnerships. For instance, in March 2021, Xage Security launched a cloud-delivered security solution, which will be available on the cloud as a zero-trust remote access solution. This solution launched for enhancing the zero trust model will address any urgent OT environment cybersecurity challenges. Some of the prominent players in the global zero trust security market are:

  • Cisco Systems, Inc.

  • Akamai Technologies

  • Palo Alto Networks

  • Check Point Software Technologies

  • Trend Micro, Inc.

  • IBM Corp.

  • Symantec Corp.

  • FireEye, Inc.

  • McAfee Corp.

  • Forcepoint

  • Microsoft Corp.

  • VMWare, Inc.

  • Fortinet

  • Cloudflare, Inc.

  • SonicWall

Zero Trust Security Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 22.06 billion

Revenue forecast in 2028

USD 59.43 billion

Growth rate

CAGR of 15.2% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Security type, deployment, organization size, authentication, application area, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico

Key companies profiled

Cisco Systems, Inc.; Akamai Technologies; Palo Alto Networks; Check Point Software Technologies; Trend Micro, Inc.; IBM Corp.; Symantec Corp.; FireEye, Inc.; McAfee Corp.; Forcepoint; Microsoft Corp.; VMWare, Inc.; Fortinet; Cloudflare, Inc.; SonicWall

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope

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Segments Covered in the Report

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 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global zero trust security market report on the basis of security type, deployment, organization size, authentication, application area, and region:

  • Security Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Network Security

    • Data Security

    • Endpoint Security

    • Cloud Security

    • Others

  • Deployment Outlook (Revenue, USD Million, 2017 - 2028)

    • On-premises

    • Cloud

  • Organization Size Outlook (Revenue, USD Million, 2017 - 2028)

    • SMEs

    • Large Enterprise

  • Authentication Outlook (Revenue, USD Million, 2017 - 2028)

    • Single-factor Authentication

    • Multi-factor Authentication

  • Application Area Outlook (Revenue, USD Million, 2017 - 2028)

    • IT & Telecom

    • BFSI

    • Healthcare

    • Retail

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • MEA

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