The key players in the global cloud security market are focusing on inorganic growth through mergers and acquisitions. Transparency Market Research (TMR) observes that they are increasingly developing converged and integrated security solutions to save end users from opting for different security suites and thus, stay relevant in the market.
The leading players are Intel Security Group, IBM Corp., Panda Security SL, Symantec Corporation, CA Technologies, and Fortinet Inc. “Several companies including Intel Security Group are likely to enhance their product portfolio related to hybrid cloud security solutions in the near future to cater to mid and large-sized customers,” says TMR’s lead analyst.
The opportunity in global cloud security market was pegged at US$5.08 bn in 2015 and is poised to exhibit a 12.8% CAGR from 2015 to 2022, reaching US$11.84 bn by 2022. On the basis of deployment, the hybrid cloud segment will continue to dominate the market until 2022, accounting for 45.6% of the overall market revenue. The demand for hybrid cloud solutions is anticipated to increase in the forthcoming years owing to its flexibility and high speed in storing data. The segment is estimated to expand at a CAGR of 13.9% during the forecast period.
North America to Lead Revenue Generation through 2022
North America will continue to be the leading regional market for cloud security until 2022, reaching a valuation of US$5.02 bn. Continuous adoption of cloud security solutions and services across various sectors including retail, IT and telecommunications, banking, and government is driving the growth of the region. However, with the flourishing growth of the IT and telecommunications sector in countries such as Australia, China, and India, Asia Pacific is expected to rise at a CAGR of 13.9% during the same period.
Flexibility and Cost Effectivity of Cloud Services to Promote Adoption across Small and Medium-sized Businesses (SMBs)
There is a pressing need for companies to protect their privileged and confidential information such as intellectual employee information, property information, non-disclosure agreements, patents (existing as well as pending), and financial information. Many organizations, particularly small and medium-sized businesses (SMBs) have started adopting cloud-based security service to benefit from its vast advantages such as cost cutting, agility, and flexibility of IT infrastructure. Moreover, cloud-based security services are preferred to traditional premises-based models as they are easier to manage, more efficient, and provide higher levels of security. Furthermore, the rising penetration of handheld devices such as smartphones, laptops, and tablets along with the increasing popularity of concepts such as bring your own device (BYOD) and choose your own device (CYOD) is fuelling the global cloud security market.
Lack of Awareness about Benefits of Cloud Services to Restrain Market from Realizing Full Potential
The growth of the global cloud security market is primarily hampered by the lack of awareness regarding the benefits of cloud services. “Most organizations are skeptical about the usage of cloud services due to quality, bandwidth cost, and data security issues,” says a TMR analyst. “Moreover, there are a small number of local suppliers as compared to international players, which is restraining the adoption of cloud computing in some regions.” For instance, in 2014, a study conducted by the Industrial Design Centre (IDC) revealed that there are very few cloud service providers in South Africa. This limits the adoption rate of cloud services in SMEs in the region. However, the growing demand for managed security services is anticipated to generate immense opportunities for the market in the near future.
The information presented in this review is based on a Transparency Market Research report, titled,“Cloud Security Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014–2022.”
The global cloud security market is segmented as:
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
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