Growing need for data security and prevention of data loss and theft are driving the global cloud security market. Companies need to protect privileged and confidential information such as intellectual property information, employee information, patents as well as pending patents, nondisclosure agreements, financial information, and others. Cloud-based security services have an edge over traditional premises-based models. These services are easier to manage, efficient, and can provide high levels of security. Many organizations started adopting cloud-based security services to benefit from its numerous advantages such as agility, cost cutting, and flexibility of IT infrastructure.
Flexibility and ease of operation to manage cloud security services, increasing demand for cloud computing by small and medium scale businesses (SMBs) and proliferation of handheld devices along with rising trend of bring your own device (BYOD) and choose your own device (CYOD) has magnified the demand for cloud security services, globally.
Nowadays, cloud security services have become crucial as these provide access to the most advanced security solutions, provide solutions to critical problems faced by companies in the current work scenario, and support remote workforce. As the number of mobile workers accessing the company’s private network is growing substantially, identity and access management has become of prime importance. Due to increasing data breaches and security threats, the business risk associated with emails and the use of the Web is increasing. Companies are concerned about log maintenance and data loss prevention of their data processes and employees. All these problems are resolved easily with the deployment of cloud security services. This is because cloud security services target specific security problems of cloud computing, and minimize the complexities associated with cloud. Moreover, security applications delivered as cloud-based services provide a promising platform to manage security and threat concerns. Cloud-based services are gaining popularity owing to the unique benefits provided to users such as scalability, agility, business continuity, flexibility at work practices, and reduction in costs. The cloud security market is anticipated to expand at a CAGR of 12.8% during the forecast period from 2015 to 2022. However, lack of awareness and skeptical nature of enterprises towards adoption of cloud services are some of the factors inhibiting the growth of this market.
On the basis of deployment, the global cloud security market is segmented into public cloud, private cloud and hybrid cloud. Among these types, hybrid cloud security market accounted for the largest share in 2014. A hybrid cloud service is a cloud computing model that enables the user to manage workload in public, on-premise, and private cloud. The user can move the data from available cloud deployments in less time and with more flexibility. The demand for hybrid cloud services is expected to increase in the coming years due to flexibility in storing data. Hybrid cloud helps the user to categorize critical data and store it in different cloud deployments. Hybrid cloud increases security risks due to continuous movement of data between clouds. Therefore, the market for cloud security is expected to increase in hybrid cloud services in the coming years. The application of cloud IAM, data loss protection, and SIEM is also expected to increase in hybrid cloud security in the future. Companies such as Intel Security Group, Trend Micro, Inc., and IBM Corporation have started providing hybrid cloud services.
In terms of cloud security adoption in end-use segments, IT and telecommunication industry accounted for the largest share in 2014. Large IT businesses use cloud computing in their daily operations and for transferring huge amounts of encrypted data across the enterprise. Due to outsourcing of IT services, the demand for cloud computing is expected to increase in the IT industry in coming years. The use of cloud computing among telecom carriers is expected to increase due to increasing adoption of android-based phones among end-users. Most of the telecom carriers are providing subscription-based cloud storage services to their end-users. This is expected to increase the market for cloud security in these industries in the future.
On the basis of service type, data loss prevention service accounted for the largest share in 2014. Data loss prevention (DLP) helps to track and protect data that is in use on network or at rest in storage through deep content inspection and security analysis. DLP acts in compliance with the security policies of an organization. Hence, the level of protection of confidential data can be controlled by an organization through DLP’s centralized management framework. DLP is able to detect files and prevent it from leaving the organization’s private cloud through any removable devices. It provides a 360 degree view of the data flow across an organization. DLP monitors emails, instant messages, documents accessed, web pages viewed, and keywords typed by employees, thus protecting possible data loss. Hence, the application of DLP is expected to increase in the cloud security market in the coming years.
North America was the largest regional market for cloud security in 2014. Growth in North America is mainly attributed to the wide adoption of cloud security services in enterprise environment. In addition, Asia-Pacific market is expected to show strong growth owing to the rising trend of BYOD and CYOD policies and superior advantages of cloud security services.
The key market players focus on inorganic growth through mergers and acquisitions in order to get a competitive edge in the global cloud security market. Big players in the market acquire smaller players to expand their businesses as well as geographical presence. For instance, Trustwave Holding, Inc. provides a range of cloud security services such as web, SIEM, email, network access, and encryption software. In 2014, Trustwave Inc. acquired Cenzic, Inc., which is expected to boost its cloud security business. In April 2015, the company entered into a definitive agreement with Singapore Telecommunications Limited (Singtel) to acquire its business. This is expected to increase the business and expand market share of the company in the cloud security market in the coming years.
The global cloud security market, in current situation shows the dominance of few players including Intel Security Group (McAfee, Inc.), Symantec Corporation, CA Technologies, Inc., Trend Micro, Inc., Trustwave Holdings, Inc. and IBM Corporation.
This report aims to provide a comprehensive strategic analysis of the global cloud security market along with the market size and growth forecast for the period from 2012 to 2022. The key factors driving the growth of cloud security market include superior advantages of cloud security services, increasing demand for cloud computing by small and medium businesses (SMBs), and proliferation of handheld devices along with the rising trend of bring your own device (BYOD) and choose your own device (CYOD) policies. However, lack of awareness and skeptical nature of enterprises towards cloud services are restraining the cloud security market growth. Security software comprises a suite of security products. A security software solution provides several features such as endpoint monitoring, encryption, intrusion detection, messaging security, identity and access management, and vulnerability scanning. Security software is widely adopted by large enterprises to protect critical information related to businesses from data theft and unauthorized access. Growing demand for integrated security suites is one of the key trends in the cloud security market.
This research study on the global cloud security market provides a detailed analysis of how organizations from various industries use cloud security solutions and services in order to prevent the theft and loss of crucial data. The report offers an in-depth analysis of the various factors affecting market dynamics such as market drivers, restraints, and growth opportunities. Using these factors, the report identifies various trends expected to impact the market during the forecast period from 2015 to 2022. The report includes a comprehensive coverage of underlying economical, environmental, and technological factors influencing the cloud security market. It also provides the competitive landscape of the key players in the cloud security market in order to highlight the prevalent competition in this market.
Based on end-use industry, the cloud security market is segmented into BFSI (Banking, Financial Services, and Insurance), healthcare and pharmaceuticals, IT and telecommunications, government and public utilities, hospitality and retail, manufacturing, and others segments. The others segment includes media and entertainment, and education industries. On the basis of service type, the cloud security market is segmented into data loss prevention, web and email security, network security, cloud database security, virtualization security, and others. The others segment includes security information and event management (SIEM), business continuity and disaster recovery (BCDR), and encryption. Moreover, based on deployment type, the market for cloud security is segmented into public cloud, private cloud, and hybrid cloud. Depending on their specific requirements, organizations can choose between these three deployment models to efficiently protect their data from loss and theft.
The report aims to provide a comprehensive, cross-sectional analysis of the cloud security market across geographical segments such as North America (the U.S. and rest of North America), Europe (EU7, CIS, and rest of Europe), Asia Pacific (Japan, China, Australasia, rest of APAC), the Middle East and Africa (North Africa, Southern Africa, rest of MEA), and Latin America (Brazil and rest of Latin America).
The report provides a detailed competitive analysis of the key players in cloud security market and identifies various business strategies adopted by these leading players. The study explains the penetration of each market segment within various geographies and how they have accelerated the growth of cloud security market.
The report includes an overview of the market strategies, annual revenues, and recent developments of the key companies operating in the market. The key market participants profiled in the study include IBM Corporation, Fortinet, Inc., Intel Security Group, Panda Security SL, Symantec Corporation, CA Technologies, Panda Security SL, Sophos Ltd., Cisco Systems, Inc., Fortinet Inc., and Trend Micro, Inc.
Cloud Security Market by Deployment Type
- Public Cloud
- Private Cloud
- Hybrid Cloud
Cloud Security Market by End-use Industry
- Government and Public Utilities
- IT and Telecommunication
- Hospitality and Retail
- Healthcare and Pharmaceuticals
Cloud Security Market by Service Type
- Data Loss Prevention
- Email and Web Security
- Cloud IAM
- Cloud Database Security
- Network Security
- Virtualization Security
Cloud Security Market by Geography
- North America
- Middle East and Africa (MEA)
- Latin America