According to our latest study on "Cloud Security Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Service Model, Deployment Model, Enterprise Size, Solution Type, and Industry Verticals," the market is expected to grow from US$ 48.57 billion in 2022 to US$ 116.25 billion by 2028; it is anticipated to grow at a CAGR of 15.7% from 2022 to 2028.
Rising Number of Cyberattacks to Fuel Cloud security Market Growth during Forecast Period
The need for cloud security services has increased with a surge in cyberattacks. Due to the rise in digital content creation and the lack of measures to secure corporate and financial data, cyber theft has increased dramatically across several industry verticals. Banking, financial services, and insurance (BFSI) is the most targeted industry by cybercriminals, followed by IT & telecommunications and retail. Data breaches cause revenue losses to firms, along with tarnishing their brand reputation. The resultant business disruptions compel laborers to quit their jobs and search for new employment opportunities in the cloud security market. Companies need to spend a considerable sum to make up for these losses and suppress the consequences of upcoming data breaches. According to estimates by IBM, an organization's average cost of a data breach was US$ 4.87 million in 2021, recording an increase of 10% over the cost incurred in 2020. As a result, businesses are implementing cutting-edge cybersecurity tools to identify risks and reduce costs associated with data breaches. Thus, the rising number of cyberattacks is driving the growth of cloud security market.
The use of containers in the IT sector has increased exponentially in recent years. A large number of businesses use managed or native Kubernetes orchestration; the well-known managed cloud services used by these enterprises include Amazon Elastic Container Service for Kubernetes, Azure Kubernetes Service, and Google Kubernetes Engine. The managed service platforms have simplified the management, deployment, and scaling of use cases. With the increasing use of containers, enterprises need to ensure that the right security solutions are in place to prevent security issues. For instance, the pods of Kubernetes clusters might receive traffic from any source, raising security issues throughout the company. To prevent attacks on vulnerable networks, enterprises implement network policies for their managed Kubernetes services. Thus, the adoption of managed container services is bolstering the growth of the cloud security market.
The implementation of cloud computing is surging due to rising data monitoring solutions use, increasing digital transactions, and growing government regulations to improve cybersecurity across several industry verticals. Additionally, a surge in adoption of managed container services, rise in the number of cyberattacks, and growth in the use of cloud-based solutions and managed security services (MSS) are among the major factors fueling the cloud security market growth. However, weak collaboration among organizations and cloud security service providers and budget and data privacy measures limits the cloud security market growth. On the contrary, growing government initiatives and investments in technologies such as artificial intelligence (AI) and machine learning (ML) are expected to create lucrative growth opportunities for the cloud security market in the coming years.
The BFSI segment has dominated the cloud security market during the forecast period. The banking, financial services, and insurance (BFSI) industry has been driving the demand for cloud security solutions and services, as the industry is a high-value target for cyberattacks and is highly regulated by several jurisdictions across the world. Market leaders in this sector are increasingly recognizing the cloud as a destination to store data and applications via the internet. Moreover, adopting the public cloud across banks and financial institutions has helped advance operational resiliency, increase regulatory compliance, improve staff productivity, and enhance the existing business model. As consumers and businesses increasingly demand real-time access across several offerings, such as online and mobile banking and high-frequency trading, the industry tends to face constant intrusion attempts and attacks. In August 2021, a survey conducted by Google Cloud and Harris Poll, an American market research and analytics company, projected that nearly 83% of financial services companies used the public cloud, and 91% of banks and financial institutions used cloud services. Therefore, with shifting consumer expectations, technological advancements, and developing regulatory requirements, accelerated the cloud security market growth. However, the shortage of cloud security experts, regulatory uncertainty, the complexity of legacy systems, and lengthy and costly installation and maintenance of on-premise IT systems are among the challenges faced in adopting cloud security in the sector.
Key Findings of Study:
The cloud security market share is segmented on the basis of service model, deployment model, enterprise size, service type, and industry vertical. Based on a service model, the cloud security market is segmented into software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS)). In 2022, the software-as-a-service (SaaS) segment led the market. By deployment model, the market is segmented into public cloud, private cloud, and hybrid cloud. In terms of enterprise size, the cloud security market is bifurcated into large enterprises and small & medium-sized enterprises. Based on solution type, it is segmented into email & web security, cloud identity & access management, data loss prevention, intrusion detection system/intrusion prevention system, security information & event management, and others. For industry verticals, the cloud security market is segmented into Banking, Financial Services and Insurance (BFSI), IT & telecom, energy & utilities, government & public sectors, healthcare, manufacturing, and others.
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