Cloud Based Security Services Market Size USD 39.2 Bn by 2032| at a CAGR 17.6%

Market Overview

The Cloud Based Security Services Market has seen rapid growth in recent years due to an increasing demand for cloud-based security solutions. This market is projected to keep expanding over the coming years as more organizations choose cloud-based protection to safeguard their data and applications from cyber threats.

Cloud Based Security Services Market is expected to grow from USD 7.7 Bn in 2022 to USD 39.2 Bn by 2032, at a compound annual growth rate (CAGR) of 17.6%.

The rising adoption of cloud-based services and need for regulatory compliance are driving this market's expansion.

The market can be divided into service type, vertical, deployment model and region. On the basis of service type, it may include identity & access management (IAM), data loss prevention (DLP), encryption and unified threat management (UTM). On the basis of vertical segmentation the market can be split up into BFSI, healthcare government/public utilities IT& telecom retail outlets as well as others. Depending on deployment model the market can be classified into public cloud, private cloud or hybrid cloud options.

Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Request for PDF sample report

Key Takeaways

• The global cloud-based security services market is projected to experience a compound annual growth rate (CAGR) of 17.6% between 2020 and 2025, driven by the increasing adoption of cloud-based services as well as regulatory compliance requirements.
• Identity and access management (IAM) is the largest segment in cloud-based security services due to an increasing need for secure access management and the safeguarding of sensitive data.
• North America leads the cloud-based security services market, followed by Europe, Asia Pacific, Latin America and the Middle East and Africa.
• The Asia Pacific region is forecast to experience the highest compound annual growth rate during this forecast period due to an increasing adoption of cloud-based services and an increasing number of cyber attacks within the region.
• The major players in the cloud-based security services market include Microsoft Corporation, Cisco Systems Inc., IBM Corporation, Symantec Corporation, McAfee LLC, Trend Micro Inc. and Fortinet, Inc.

Regional Snapshot

North America: North America is the leading market for cloud-based security services due to the abundance of cloud solution providers in the region. The US and Canada are particularly influential in driving growth within this region.

Europe: Europe is the second-largest market for cloud-based security services due to the increasing adoption of these solutions and an ever-increasing need for secure data protection. Countries such as the UK, Germany, and France are major drivers of growth within this region.

Asia Pacific: The Asia Pacific region is expected to experience the highest compound annual growth rate during the forecast period due to an increasing adoption of cloud-based services and an uptick in cyber attacks across the region. China, Japan, India, and South Korea are major drivers for market expansion within this region.

Latin America: Latin America's cloud-based services market is expected to experience significant growth over the forecast period due to an increasing need for data protection. Brazil and Mexico are leading contributors to this regional growth trajectory.

Middle East and Africa: The Middle East and Africa are projected to experience moderate growth over the forecast period due to increasing adoption of cloud-based services and an increasing need for data security. Saudi Arabia, UAE, and South Africa will be major drivers of market expansion in these regions.

Drivers

Growing Adoption of Cloud-Based Services: As more organizations move their applications and data to the cloud, there is an increasing need for cloud-based security solutions to protect those assets. With this growth comes an increase in demand for these solutions.

Need for Regulatory Compliance: Organizations are becoming increasingly subject to regulations that mandate them to protect their data and applications. Cloud-based security services help companies meet these regulatory obligations by offering advanced security features.

Rising Cyber Threats: The growing number of cyberattacks and data breaches are driving demand for cloud-based security services. Cloud-based security solutions offer advanced threat detection and response capabilities to organizations so they can better protect themselves against cyber threats.

Cost-Effectiveness: Cloud-based security services offer more cost-effective security solutions compared to on-premises alternatives due to the subscription model that doesn't require organizations to purchase and maintain hardware or software.

Restraints

Security Concerns: Despite the advantages of cloud-based security services, some organizations remain hesitant to move their data and applications there due to security worries. Issues around data privacy, sovereignty, and loss are some of the primary factors preventing organizations from adopting cloud-based security solutions.

Limited Control: Organizations may experience limited control over their data and applications when they move to the cloud. This lack of oversight may pose a problem for organizations that require full oversight over their information systems and applications.

Internet Connectivity: Cloud-based security services require a reliable internet connection to function correctly. Organizations with poor internet connections may experience issues when utilizing these types of solutions.

Integration Challenges: Integrating cloud-based security services with existing IT systems can present organizations with additional costs and delays when adopting these services.

Opportunities

Growing Adoption of IoT and BYOD (Bring Your Own Device): With the rising adoption of Internet of Things (IoT) and Bring Your Own Device (BYOD), demand for cloud-based security services has grown. These technologies pose new security risks that can be addressed with these cloud-based measures.

Emerging Markets: Emerging markets such as Asia-Pacific, Latin America and the Middle East and Africa are expected to present significant growth prospects for cloud-based security services. With an increasing adoption of cloud computing in these regions comes new business opportunities for those offering these solutions.

Advancements in Technology: Recent advances such as artificial intelligence, machine learning and blockchain are creating new opportunities for cloud-based security services. These technologies can be leveraged to bolster the safety of these cloud-based offerings and guard against emerging threats.

Multi-Cloud Security: The growing trend towards multi-cloud environments presents new opportunities for cloud-based security services. Multi-cloud environments need a holistic approach to security that can be provided by cloud-based security providers

Challenges

Lack of Skilled Personnel: The shortage of skilled personnel with expertise in cloud-based security poses a major obstacle for the market. Demand for these services is growing rapidly, yet there is an acute shortage of personnel with the necessary abilities and knowledge.

Complexity of Cloud Environments: Cloud environments can be intricate, featuring multiple applications, data sources and infrastructure components. This complexity makes it challenging to implement and manage cloud-based security services.

Compliance Challenges: Adhering to regulations such as GDPR, HIPAA and PCI-DSS in cloud environments can present a challenge. Cloud-based security services must meet these compliance standards in order to remain effective.

Data Sovereignty and Privacy Issues: Data sovereignty and privacy can pose a major challenge for cloud-based security services. Organizations must guarantee their data is stored and processed in accordance with local data protection laws and regulations.

Recent Developments

• Cloudflare, a leading cloud-based security service provider, announced the acquisition of S2 Systems Corporation in December 2021 to enhance its security offerings.
• Microsoft announced the acquisition of CloudKnox Security, a cloud-based security service provider that specializes in privilege access management, in July 2021.
• Cisco announced the acquisition of Kenna Security, a cloud-based security service provider that specializes in vulnerability management, in June 2021.
• Google Cloud announced the acquisition of RiskIQ, a cloud-based security service provider that specializes in threat intelligence, in July 2021.
• Amazon Web Services (AWS) announced the acquisition of Wickr, a cloud-based security service provider that specializes in secure communication, in June 2021.

Key Market Segments

Type

• Internal IT Security Breaches
• External Security Breaches

Application

• Identity Access Management (IAM) System
• Secure Web Gateway
• Secure E-mail Gateway
• Others

Key Market Players

• Azure Infrastructure Solutions
• Barracuda Networks
• Blue Coat Systems
• CA
• Cisco Systems
• Covisint
• Echoworx
• IBM Corporation
• McAfee
• NCrypted Cloud
• Okta Inc.
• Panda Security
• Ping Identity
• Proofpoint
• RSA Security
• Sophos
• Symantec Corporation
• Vormetric
• Websense
• Zscaler

Report Scope

FAQs

Q: What is cloud-based security?

A: Cloud-based security refers to the use of cloud-based services to provide security solutions for applications, data, and infrastructure in the cloud.

Q: What are the benefits of cloud-based security services?

A: Cloud-based security services offer several benefits such as cost-effectiveness, scalability, flexibility, and advanced security features.

Q: What are the key drivers for the cloud-based security services market?

A: The key drivers for the cloud-based security services market are the increasing adoption of cloud-based services, the need for regulatory compliance, rising cyber threats, and cost-effectiveness.

Q: What are the major challenges for the cloud-based security services market?

A: The major challenges for the cloud-based security services market are the shortage of skilled personnel, the complexity of cloud environments, compliance challenges, and data sovereignty and privacy concerns.

Q: Which regions offer significant growth opportunities for cloud-based security services?

A: Emerging markets such as Asia-Pacific, Latin America, and the Middle East and Africa offer significant growth opportunities for cloud-based security services.