Market Trends of Cloud-based Email Security Industry
Increasing use of cloud based email security in BFSI sector to drive the market.
- The financial sector generates a massive volume of data generated by its customers. Banks and financial organizations increasingly employ services to store and analyze complex data to use the collected data through various data points and improve customer satisfaction. Additionally, with higher customer expectations, growing technological capabilities, and regulatory requirements, banking institutions are pushed to adopt a proactive approach to security. This has resulted in the incorporation of cloud-based security platforms.
- Cybersecurity is even more important for BFSI companies, which need to ensure regulatory compliance and protect the sensitive financial information of their customers at all times. Large banks and capital markets increasingly recognize that the cloud-based security platform is more than just technology, further creating growth opportunities for the market.
- Cloud-based email solutions can help reduce implementation time and costs for banks trying to keep pace with regulations regarding administrative access control. The data is exponentially growing, with an increase in e-transactions. Email exchanges between employees and customers in the BFSI sector contain highly lucrative, important, and valuable information and can greatly benefit hackers. Additionally, organizations in the investment banking sector that use email as their primary means of communication internally and externally have encrypted their email accounts and taken steps to limit eavesdropping and hacking.
- To secure their IT processes and systems, secure customer critical data, and comply with government regulations, private and public banking institutions are focused on implementing the latest technology to prevent cyberattacks. Furthermore, with higher customer expectations, growing technological capabilities, and regulatory requirements, banking institutions are pushed to adopt a proactive approach to security. Cybercriminals are increasingly using a sophisticated range of tactics. Financial services firms' most expensive attack types are denial of services, phishing email attacks, and social engineering.
- Further, Machine learning and Artificial Intelligence (AI) are expected to emerge as the most sought-after solutions, as cybercriminals are also using similar capabilities to break in. It is expected to attract more investments in strengthening security capabilities by organizations to counter and mitigate such risks.
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North America Accounts For the Largest Market Share
- North America is a primary hub for all the major organizations worldwide. The expansion of the various end-user industries and the growth of IoT drive the region's demand for smart devices and mobiles. The attacks' risks can impact the market varying from individuals and government to corporates. Thus, securing the data has become a priority in the region.
- Email is one of the most popular tools and one that businesses use every day. According to the FBI's Internet Crime Report, the compromised business email and email accounts were part of malicious phishing campaigns, costing U.S. businesses about USD 2.4 billion.
- In addition, cyberattacks in North America, especially in the United States, are rapidly increasing. The number reached a record high, largely due to the rapid increase in the number of connected devices in the region. According to Microsoft, the United States remains the most highly targeted country, with 46% of global cyberattacks in the region.
- The United States is marked with increased investments in cybersecurity solutions and cyber threat-detecting software and platforms. With the increased awareness amongst companies from small to large enterprises, the U.S. government is taking several initiatives to prevent cyberattacks and deploy stricter solutions to protect data and install fraud and threat detection programs. For instance, in March 2023, the U.S. government announced the release of the National Cybersecurity Strategy to ensure that all Americans enjoy the full benefits of a secure digital ecosystem.
- Furthermore, several regional companies are focusing on offering new solutions to meet the growing demand. For instance, in November 2022, Barracuda Networks, Inc. announced it offered email security integrated with Amazon Security Lake to help customers reduce the complexity of email security data. The company's email protection solutions streamline access to customer security data through email security solutions, reduce costs, and cover a variety of security use cases such as investigation, threat detection, and incident response.
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