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

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.

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.

Zero Trust Security Market Trends

The rising adoption of cloud technologies and endpoint devices across enterprises has driven the need for a zero-trust security framework. As the IT infrastructure of enterprises becomes more robust and complex, the threat of internal breaches and external cyberattacks due to unauthorized access has increased over the years. To address this concern, security vendors in the market are focused on offering zero trust security concepts with the amalgamation of security solutions and services in a model, thereby adding multiple layers of authentication to access a device or network.

The introduction of Artificial Intelligence (AI), Machine Learning (ML), IoT, blockchain, and BYOD has increased the influx of devices that use cloud for data transfer and storage. Additionally, connected devices with IoT and AI capabilities constantly gather and store data on the cloud, making them susceptible to hackers. Hence, security vendors have started emphasizing the adoption of zero trust models for a robust and holistically secured IT environment. Many vendors are also focusing on scaling endpoint security for the digital revenue model. As cyber security players are transitioning into zero trust security vendors, over 160 companies claim to offer either certain solutions or the complete framework for the implementation of zero trust security model.

The popularity of Bring Your Own Device (BYOD) and Choose Your Own Device (CYOD) trends is increasing at a significant rate across organizations. Benefits such as cost reduction on the endpoint infrastructure procurement front and the improvements in employee productivity ensured by allowing them to work on familiar devices are driving the popularity of such concepts. The importance of the BYOD concept gained significance during the COVID-19 pandemic as organizations adopted the remote working model. According to an article published on TechJury.net in October 2021, a software reviewer, 61% of the organizations anticipate their employees to be working remotely even when a company-owned phone was not provided. The article also highlighted from Samsung Insights that companies could save almost 11% by migrating from Employers that Provide Device (EPD) to BYOD.

The growing sophistication of cyber threats and their negative impact on an organization’s operational activity have compelled several policymakers, governments, and authorities to implement and form regulations. Currently, more than 120 countries have implemented some form of privacy laws for data protection. This is to promote data security and support consumers in ensuring that data is stored in secured infrastructure. As the Internet of Things (IoT) expands across organizations and an increasing number of IoT applications collect consumer data from several touchpoints, the risk of data theft and unauthorized access of data increases. Data protection regulations and laws are important to prevent such attempts. Such regulations compel companies to maintain adequate security compliances and form zero-trust policies, thereby driving market growth.

The advent of cloud-based solutions and cloud infrastructure has offered several benefits for enterprises across all industry verticals. With improvements in profitability, scalability, accessibility, and productivity, cloud computing technology redefined the way businesses operate. However, the ease of access to applications and information and access to different operations using cloud interfaces increases security challenges. Cyber threat agents or actors continuously seek different ways to penetrate or gain access to an IT network and can easily identify vulnerabilities. Furthermore, knowledge of credentials could also help threat actors infiltrate the solutions or data hosted on the cloud. Such challenges have expanded the scope of the zero-trust security model, which is anticipated to increase the adoption of zero trust security solution over the forecast period.

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.

 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 2020 accounting for a revenue share of over 37.2% 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 is expected to 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.

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.

Early availability and adoption of technology across the region have been among the main reasons for the high adoption of zero-trust security solutions. Additionally, the U.S. and Canadian governments are expected to invest heavily to strengthen the cybersecurity landscape across the region over the next 4-5 years. Additionally, the high number of IT and capital markets and their diversified businesses worldwide calls for efficient management of the endpoint devices and has contributed to the market growth in this region.

The Asia Pacific is expected to register the highest growth over the forecast period, owing to the increased proliferation of end point devices in this region. The massive working population across emerging economies in the Asia Pacific is expected to increase the adoption of endpoint devices, thereby fueling the UEM market growth. Further, with the growing adoption of public cloud services across Europe, organizations are expected to upgrade their security models. Additionally, the stringent regulatory environment across Europe is expected to compel several organizations to adopt zero-trust security solutions to safeguard customer data.

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

Global Zero Trust Security Market 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 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