Cloud Security Market Size, Share, Trends, Analysis and - Industry Growth | 2031 (2024)

Cloud Security Market size was valued at USD 33.50 Billion in 2022 and is poised to grow from USD 39.5 Billion in 2023 to USD 147.45 Billion by 2031, growing at a CAGR of 17.9% in the forecast period (2024-2031).

Emerging advanced security applications in the cloud environment, increasing number of cyberattacks, increasing reliance on cloud-based services while these factors drive the cloud security market growth. Furthermore, factors such as the evolution of the cloud computing landscape and the growth of mobile computing are giving the cloud security industry an opportunity to expand.

Cloud security protects cloud data, applications, and infrastructure from cyber-attacks and cyber threats. With enterprise cloud adoption on the rise, business-critical app and data are moving to established third-party cloud service providers (CSPs). Executives weigh the benefits of using cloud services by the level of data security risk their companies are willing to take because no company or CSP can eliminate security risks and vulnerabilities. It’s important to implement proper cloud security policies and regulations.

US Cloud Security Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

The Global Cloud Security Market is segmented based on the Security Type, Enterprise Size, End-user, Service Model, Deployment, and Region. Based on Security Type, the market is segmented into Identity and Access Management (IAM), Data Loss Prevention (DLP), Security Information and Event Management (SIEM), Business Continuity and Disaster Recovery, and Others. Based on Enterprise Size, the market is segmented into Large Enterprises, Small and Medium-sized Enterprises (SMEs). Based on End-user, the market is segmented into IT and Telecommunication, Banking, Finance, Security and Insurance (BFSI), Healthcare and Life Sciences, Manufacturing, Retail, Government, Energy and Utilities, and Others. Based on Service Model, the market is segmented into IaaS, PaaS, SaaS. Based on Deployment, the market is segmented into Private and Hybrid Segment. By Region the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.

Analysis by Enterprises Size

The large enterprises segment accounted for 75.5% market share in 2023 and is expected to dominate market share by 2030. As enterprises shift their operations to the cloud, the need for security policies that integrate seamlessly with cloud systems grows. Large enterprises that often operate in highly regulated industries with compliance priority management takes precedence over the implementation of cloud security. The constant research and changes in the market will determine the future market for great companies. Ongoing practice becomes necessary to maintain an adaptive security posture in the face of changing technological risks.

The small and medium enterprises (SMEs) segment is expected to witness the fastest growth at a CAGR of 15.5% during the forecast period. The growth of the SME segment can be attributed to the increasing potential risks of cyber threats, leading SMEs to prioritize cybersecurity. The critical nature of cyberattacks and the frequency of incidents have highlighted the need for proactive security measures. Cloud security solutions include managed services, which enable SMEs to leverage the experience of external security professionals. The strategic outsourcing of security services enables SMEs to improve their security posture without the need for large internal resources, increasing the SME segment in the market.

Analysis by Deployment

The private sector held a market share of 47.1% by 2022 and is expected to dominate the market by 2030. The growth of this sector can be attributed to organizations using mission critical applications and business to ensure that reliability and highly effective speed. Migration of traditional on-premises infrastructure to a separate cloud infrastructure enables enterprises to leverage the cloud. Advances in interoperable security technologies, including multiple security technologies and platforms together effectively and exchange information on threats will be verified during the forecast period.

The hybrid segment is expected to witness the highest growth at a CAGR of 13.5% during the forecast period. The growth of the hybrid phase can be attributed to organizations placing greater emphasis on the benefits of data management. Hybrid cloud solutions provide the ability to store and process data where decisions make the best economic sense, based on considerations such as performance, compliance, pricing, etc. Hybrid cloud system enables companies to expand their operations globally without impacting efficiency or reliability.

The North America region dominated the market with a share of 34.0%. North American organizations have been more active in developing robust security measures, due to increased awareness of cybersecurity threats America. The North, especially the US, largely is a global provider of leader in various sectors such as science, technology, banking and healthcare benefits related to strategies for protecting critical assets.

Asia-Pacific is expected to emerge as the fastest growing regional market at a CAGR of 14.8%. The growth of the Asia-Pacific (APAC) region in the market can be attributed to the proliferation of cross-border companies. Cloud security solutions provide a unified and modular approach to security across multiple locations, helping companies manage complex cybersecurity.

Driver

Rise in the Adoption of Cloud Computing Solutions and Services

• One of the major drivers for the market growth is the increasing adoption of cloud computing. Complex mathematical prediction models enable cybersecurity solutions that manage large amounts of data and data sets. With cloud technology, this data management can be completed in a secure and reliable environment. Major players like Cisco Systems, IBM Corporation, and others are committed to adopting cloud computing in cybersecurity solutions. These cloud computing services are based on 'Analytics-as-a-Service (AaaS) offerings to help end users quickly monitor and control unexpected threats. Furthermore, growth is enhanced by increased demand for large storage applications to store data and protect it with advanced security models.

Crypto Jacking to Increase Cloud Security Market

• Different values of cryptocurrencies corresponding to better decision-making ability leads to Crypto-jacking attacks in the cloud. For example, CoinStomp is a malware that creates shell scripts that attempt to use cloud computer instances hosted by network security providers to mine cryptocurrency. IT and security users and providers can implement the necessary countermeasures. The slow publication of public cloud storage services means that organizations are using countermeasures to address security concerns. The proliferation of malware attacks such as Coin Stomp can lead to a takeover of cloud security services such as user no data governance, stakeholder access and accessibility.

Restraints

Rapid Cost Concerns

• Small and mid-sized businesses often face budget constraints when it comes to implementing robust cloud security solutions. These solutions can have significant costs, including software, hardware, and employee training costs. As a result, some organizations adopt lax security measures, leaving them vulnerable to cyber threats. In today’s digital environment, it’s a big challenge for such businesses to find a balance between cost-effective security solutions and adequate security.

High Complexity

• Cloud security solutions present challenges because of their complexity. Companies can struggle with the complexity of setting up and managing multiple security tools and systems. These challenges require a skilled IT team, which can be restraints for smaller organizations. Simplifying and streamlining security measures is essential to making these solutions accessible and effective for a wide range of businesses.

Market leaders like Microsoft Corporation, Cisco Systems, Inc., IBM Corporation, Palo Alto Networks, Inc., Broadcom Inc., and others strive to improve their product offerings by integrating advanced technologies. Other players are forming strategic alliances to strengthen their market position and gain a competitive advantage. To maintain competencies, the major players use technological alliances, partnerships, and collaborations with other companies. Key market players' go-to strategies include upgrading existing products and developing new products to meet industry demands.

Cloud Security Market Top Players Company Profiles

• TrendMicro, Inc. (Japan)
• Broadcom (US)
• Zscaler (US)
• Akamai Technologies (US)
• Forcepoint (US)
• Fortinet (US)
• F5 (US)
• Qualys (US)
• Netskope (US)
• Proofpoint (US)
• Tenable (US)
• Cisco Systems (US)
• McAfee, Inc. (US)
• Palo Alto Networks, Inc. (US)
• Check Point Software Technologies (Israel)
• Microsoft Corporation (US)
• IBM Corporation (US)
• Splunk Inc. (US)
• Alphabet Inc. (US)
• AWS (US)

Cloud Security Market Recent Developments

• In April 2024, Sonrai Security, a cloud security solutions provider, has unveiled the release of the Cloud Permissions Firewall for AWS, Azure, and Google Cloud. This innovative technology transforms cloud access and permissions security, providing a streamlined one-click least privilege solution without interrupting cloud operations and development teams.

• In April 2024, Google unveiled a range of new cloud-based security offerings tailored for organizations overseeing extensive multi-tenant corporate networks. Alongside enhancements to existing products and services, Google introduced several updates to meet the evolving needs of its customers. Notably, many of these announcements revolved around Gemini, Google's premier suite of generative AI models, reflecting the company's commitment to leveraging advanced AI technology to bolster its security offerings.

• In November 2023, IBM unveiled a significant transformation of its flagship IBM QRadar SIEM product, introducing a redesigned version built on a new cloud-native architecture tailored for hybrid cloud environments. This redesign prioritizes scalability, speed, and adaptability to meet the demands of modern computing landscapes. Additionally, IBM disclosed its intention to integrate generative AI capabilities into its threat detection and response portfolio, leveraging watsonx, the enterprise-grade data and AI platform developed by the company.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

According to SkyQuest analysis, the cloud security market is growing rapidly driven by the increasing adoption of cloud services across various industries. As organizations move their data and applications to the cloud, ensuring the security of these resources becomes paramount. Cloud security includes a range of technologies, policies and practices designed to protect cloud-based systems, data and infrastructure from threats. The main driver of the cloud security market is the widespread adoption of cloud services by all sizes of enterprises. Organizations are increasingly using cloud platforms for their scalability, cost effectiveness and flexibility. However, this migration requires robust security measures to protect sensitive data and ensure compliance with regulatory standards. The rise in cloud usage is driving the demand for comprehensive cloud security solutions. One of the most important restraints in the cloud security market is the challenges associated with implementing and maintaining cloud security solutions. The cloud security market is poised for tremendous growth, driven by the increasing adoption of cloud services, requiring robust security measures.