The Cloud-based Email Security Market is Segmented by Deployment (Public, Private, Hybrid), End-user Industry (BFSI, Government, IT and Telecommunications, Retail), and Geography.
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Scope of the Report
Key Market Trends
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The global cloud-based email security market was valued at USD 762.82 million in 2019, and it is expected to reach a value of USD 1246.99 million by 2025, at a CAGR of 8.68%, during the forecast period from 2020 to 2025. According to 99 Firms, a prominent email market vendor in the global market, there were about 3.9 billion email users worldwide in 2019, which is expected to reach approximately 4.3 billion in 2023. According to the data port, 45% of emails are spam, and email spam costs businesses about USD 20.5 billion annually. The growth of the cyber environment and related technologies paved the way for new threats. Cyberattacks are highly targeted, persistent, and technologically advanced.
According to a study published by CenturyLink, cloud computing is expected to generate USD 411 billion, by 2020. The adoption of this technology is increasing significantly. The main reasons for moving to the cloud are scalability, increased effectiveness, faster implementation, mobility, and disaster recovery. Although the area of cloud computing is witnessing a rapid growth from the past few years, data privacy and software security are rising concerns, currently. According to the 2019 report od state of security operations, 4.1 billion data records are exposed to data breaches and cyberattacks.
Cloud security software is one of the essential tools deployed by cloud service providers and users to protect the overall cloud infrastructure. Various online companies that rely on the internet as a vital source of information exchange, such as e-commerce companies, like Amazon, are more vulnerable to cyberattacks. Financial institutions and healthcare sectors are among the other businesses with high financial gains, which are also lucrative targets for hackers. However, email security outsourcing has an inherent risk, as organizations must rely on and trust a third-party provider for service.
Email security outsourcing may be interrupted by technical issues or financial bankruptcy. A severe email failure security providers can lower an organization’s confidence in cloud-based security. According to IBM, 60% of emails are opened on mobile devices, depending on the industry, which increases the threat of spam mail, phishing mail, and other threats related to email. Factors, such as a need for decreasing onsite datacentre footprints and cost savings, coupled with increasing incidences of spam, viruses, inappropriate content through email, and flexible deployment options, are spurring the market growth.
In March 2020, Trend Micro released its 2019 Cloud App Security Roundup report. It was specified that the company blocked 12.7 million high-risk email threats in 2019 for customers who could leverage cloud-based email services from Microsoft and Google. This second layer of defense caught risks beyond those detected by the cloud email services’ built-in security. Approximately 11 million of the high-risk emails blocked in 2019 were related to phishing, making up 89% of all blocked emails. Trend Micro detected 35% more phishing attempts related to credentials in 2019 compared to 2018. Moreover, the number of unknown phishing links in such attacks increased from just 9% of the total to approximately 44% in 2019, which shows that scammers are registering new sites to avoid detection.
With the recent outbreak of COVID-19, the cloud-based email security market is expected to witness significant growth, as cloud-based services and tools are increasingly adopted, due to organizations deploying remote work access, amid lockdown, in various countries. In Italy, Microsoft noticed an increase of 775%, calling and meeting monthly users for the Teams product in one month. According to data provided by Google, about 18 million COVID-19 spamming emails are blocked by the company every day. The increasing usage of cloud-based services during the pandemic is becoming a hotspot for cyberattacks, as millions of people are working in unfamiliar and less secure circumstances.
Scope of the Report
The increasing penetration of cloud-based services in organizations, coupled with the rising number of cyberattacks and the sophistication of malware, spam, and phishing attacks occurring across the world, is expected to drive the adoption rate for cloud-based email security. The application of cloud-based email security has been deployed publicly, privately, and hybrid. It is also used by various end-user industries, such as BFSI, government, IT and Telecommunications, and retail industries. The study also covers the impact of COVID-19 on the market.
By Deployment Model
By End-user Industry
IT and Telecommunications
Other End-user Industries
Middle East & Africa
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Key Market Trends
BFSI is Expected to Hold Major Share
The financial sector generates a massive volume of data generated by its customers. Banks and financial organizations are increasingly employing 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 incorporating cloud-based security platforms.
Cloud-based email solutions can help reduce implementation time and costs for banks trying to keep pace with regulations regarding organizational access control. The data is exponentially growing, with an increase in the number of e-transactions. Email exchanges within this sector, among employees and customers, contain crucial valuable information that is rather lucrative and can result in a high gain for hackers. Moreover, organizations in the investment banking sector, which use emails as a primary mode of communication, both internally and externally, are taking measures to encrypt and limit eavesdropping and hacking of their email accounts.
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. Denial of services, phishing email attacks, and social engineering are the most expensive attack types for financial services firms.
Machine learning and Artificial Intelligence (AI) are expected to emerge as a most sought-out solution in the future, as cybercriminals are also using similar capabilities to break in. It is expected to attract more investments in strengthening security capabilities by the organizations to counter and mitigate such risks. Moreover, according to Cisco Systems, by 2021, 70% of public and private companies are expected to be using cloud email services. The access to email from anywhere and on any device states that it is essential for organizations to protect themselves from increasingly prevalent threats.
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North America is Expected to Hold Major Share
North America is a primary hub for all the major organizations across the world. The expansion of the various end-user industries and the growth of IoT are driving the demand for smart devices and mobiles in the region. The risks of attacks that can impact the market vary from individuals and corporates to the governments. Thus, securing the data has become a priority in the region. Moreover, cyberattacks in the North American region, especially in the United States, are rising rapidly. They have reached an all-time high, primarily owing to the rapidly increasing number of connected devices in the region.
In 2019, Americans lost more than USD 70,000 to Nigerian Prince Scams, according to 99 firms. According to Spamlaws, 26.5% of all unwanted emails are related to financial matters, the third biggest spam email category, and scams and frauds account for about 2.5 % of all spam emails, where identity theft is the goal of 73% of those. According to IBM, 59% of ransomware attacks are delivered via email. In 2019, many municipalities in the United States had recorded ransomware attacks, which have cost these companies a substantial recovery. For instance, Baltimore spent over USD 18.2 million in regaining its access to its connected systems. Also, 23 towns in Texas and two towns in Florida faced system lockdown due to ransomware recently.
In October 2019, the three healthcare providers operated by DCH Health Systems in the country were attacked by ransomware strain known as Ryuk. All these healthcare centers have implemented emergency procedures to ensure their patients' safety, and the company is working on the attack diagnosis. Such cyberattacks are expected to increase in the country across the domains, which may fuel the demand for cybersecurity solutions in the market. Ryuk's ransom notes contain contact emails with the end @protonmail.com or @tutanota.com. The victim needs to send a message to determine how much they must pay for the decryption key.
In September 2019, Avanan announced it had been granted a U.S. Patent for its API-based inline security threat prevention capability. This cloud-to-cloud solution shields email, file-sharing, and instant messaging from malware, data leakage, phishing, and other advanced threats. The company leverages its patented technology to work with built-in security and scan outbound, inbound, and internal email. The solution blocks malware, data loss, phishing, and insider threats. This approach allows the platform to take specific actions before malicious content reaches user inboxes and before sensitive data leaks.
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The global cloud-based email security market is entirely consolidated due to fewer players occupying the larger market share. The new players are trying to penetrate the established market. Some key players in the market are Cisco Systems Inc., Proofpoint Inc., Trend Micro Inc., and Fortinet Inc. Some recent developments in the market include:
February 2020 - Cisco Systems Inc. incorporated its security products into a single, cloud-native security platform called Cisco SecureX, which helps customers to strengthen security across all of their networks, endpoints, clouds, and application deployments. This increased visibility provides benefits to the customers, given the sheer size of Cisco’s security portfolio, which includes various firewalls, web and email services, malware protection, and intrusion detection systems.
September 2019 - Proofpoint, Inc., announced a partnership and integration with CrowdStrike, a leader in cloud-delivered endpoint protection, to provide organizations worldwide with advanced threat protection across email and endpoints. In the initial combination, Proofpoint’s superior Targeted Attack Protection (TAP) security intelligence will feed threat intelligence on malicious email attachments into CrowdStrike Falcon to enhance device security and stop attackers.