Cloud Network Security Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The cloud network security market is segmented by enterprise size (small and medium enterprises, large enterprises), by security type (application, database, network, web, and e-mail), by type of application (IAM, DLP, SIEM), by end-user industry (government, BFSI, healthcare), and by geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

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Cloud Network Security Market Size

Cloud Network Security Market Summary
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Study Period 2018 - 2028
Base Year For Estimation 2022
CAGR 18.10 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Low

Major Players

Cloud Network Security Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Cloud Network Security Market Analysis

The cloud network security market is expected to register a CAGR of 18.1% during the forecast period. Protection against cyberattacks is becoming more critical for industrial establishments. Therefore, industries are now considering implementing cloud network security right at the development stage for new machines and throughout their entire life cycle. The entry of new cloud security start-ups will bring more financial investment to the market, adding to the advancement and development of the service. The adoption rate for cloud storage became high during the COVID-19 period as the work-from-home option emerged significantly, and many companies continue to follow this. These modifications in the work environment are fueling the need for cloud security.

  • The market comprises major players, such as IBM, Cisco, and Intel, who are the leaders in technology and the networking market (Cisco). Being early adopters and significant investors in cloud-based networking technologies, these players are pioneers in the market. To hold on to their competitive edges and positions in the market, these companies have continued to invest in this field.
  • Deloitte announced the expansion of its global Google Cloud practice, which will not only advance the company's cloud capabilities but also provide training and certification for cloud professionals. The clients will also benefit by helping them realize value from cloud investments.
  • CrowdStrike and EY signed an alliance to deliver cloud security and observability services. This venture will provide joint customers the ability to secure their cloud workloads with CrowdStrike Cloud Security and real-time visibility to better understand and assess issues in their infrastructure environments.
  • The COVID-19 pandemic affected every organization. There was a high demand for cloud storage, which required a secure and efficient operation due to the rise in work-from-home adoption, web-based conferences, and rising user traffic on the networks that connected users to these services.
  • Forecasts for the development of data centers indicate that construction on 4.1 GW worth of facilities is already underway in 55 regions, posing challenges for cloud network businesses to store, preserve, and secure this data.

Cloud Network Security Market Trends

This section covers the major market trends shaping the Cloud Network Security Market according to our research experts:

Application-based Classification and Products to have Significant Demand for Cloud Network Security

  • Application-based segmentation and product availability have driven positive demand for cloud network security-based products in the market. Organizations opt for data encryption or other available means to safeguard information.
  • Commercial usage varies from the military-grade products and services used in defense to industry-grade products and services for financial businesses to public-use products and services. Some network applications require uninterrupted connectivity vital for the operation of the business, while others require the network to be operated continuously with a tolerance for disruption.
  • These factors decide the application-based implementation and usage of the product and drive the market in their respective segments. A failure of communication can be catastrophic and huge in terms of finances in the aviation and defense sectors, driving the demand for top-end products.
  • The number of apps used in the various sectors is increasing, while the financial services segment holds the major share as it serves the customer in various ways, like targeted customer promotions and product offers, bank appointment reminders, real-time alerts, bill reminders, and customer surveys.
Cloud Network Security Market : Cloud Application Market Size, in billion units (2018-2025)

United States Accounts for the Largest Share in the Cloud Network Security Market

  • The United States is the largest consumer of cloud network security in the world. This could be attributed to the presence of large enterprises, the growing frequency of cyberattacks, and the increasing number of hosted servers in the country.
  • Many cloud security-providing companies are headquartered in the United States, and the country is home to approximately 63% of the world’s privately-owned cybersecurity companies. Most of the companies pilot their new services in the country before launching them globally.
  • The rapid adoption of new technology in the country and the growing focus on security are pushing the market forward. The presence of large cloud service providers in the country, such as Microsoft and Amazon, is playing a significant role in the growth of the cloud security market.
  • US federal, state, and local government agencies rank last in cybersecurity compared to 17 major private industries, including transportation, retail, and healthcare. Presently, however, the government in this region has tightened the security norms to provide better cloud security.
  • With higher penetration levels in medium- and large-scale companies compared to the rest of the market, this segment of the market is expected to be the main buyer of network security solutions. Also, as smaller enterprises access their cyber exposures, growth in the adoption of cloud-based solutions is expected. As a result, investments in this sector are also expected to increase exponentially over the forecast period.
  • Moreover, there is huge growth potential in other industry segments in the country, such as manufacturing, energy, and utilities, as they have already migrated to digitally transformed methods of operation and are now beginning to get a better understanding of their cyber exposure.
Cloud Network Security Market : Growth Rate by Region

Cloud Network Security Industry Overview

The global cloud network security market is highly fragmented, as several cyber threats are forcing governments and respective industries to invest more in their cyberspace. Increasing investment is driving many new players that offer solutions at lower prices into the market, which makes the market competitive. Some of the key players in the market are IBM Corporation, Intel Corporation, Trend Micro Inc., Cisco Systems Inc., and Huawei Technologies Co., Ltd. These players are constantly innovating and upgrading their product offerings to cater to increasing market demand.

In November 2022, Cisco and Red Hat joined hands to streamline hybrid-cloud container management. With this partnership customers can more easily turn-up and manage bare-metal containerized workloads.

In November 2022, Google Cloud and the Data Security Council of India (DSCI) together launched the "Secure with Cloud initiative, aimed at "demystifying cloud security" and encouraging cloud migration.

Cloud Network Security Market Leaders

  1. IBM Corporation

  2. Intel Corporation

  3. Trend Micro Inc.

  4. Palo Alto Networks Inc.

  5. Cisco Systems Inc.

*Disclaimer: Major Players sorted in no particular order

IBM Corporation, Intel Corporation, Trend Micro Inc., Palo Alto Networks Inc., Cisco Systems Inc.

Cloud Network Security Market News

  • December 2022: The Pentagon signed cloud computing contracts worth $9 billion with Alphabet Inc.’s Google, Amazon Web Services Inc., Microsoft Corp., and Oracle Corp. IBM was kept off this contract list. These contracts will build a bridge between the Defense Department and private sector companies. The Department of Defense will have access to enterprise-wide, globally available cloud services across all security domains and classification levels.
  • November 2022: IBM announced the release of a technical preview of its Incident Management Software as a Service (SaaS) offering. According to IBM, this new SaaS service is designed to help organizations understand the status of their application and infrastructure resources and provide the ability to address some of the core challenges faced by central IT Operations during incident triage.
  • October 2022: Intel and Google Cloud launched a new chip to improve data center performance. This co-designed chip can make data centers more secure and efficient. Companies are using progressively bigger data sets, but the performance improvement of chips like CPUs is slowing down. To make the data center itself more productive, cloud companies are therefore looking for innovative ways for data storage and security.

Cloud Network Security Market Report - Table of Contents

  1. 1. TOC

  2. 2. INTRODUCTION

    1. 2.1 Study Assumption and Market Definition

    2. 2.2 Scope of the Study

  3. 3. RESEARCH METHODOLOGY

  4. 4. EXECUTIVE SUMMARY

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Overview

    2. 5.2 Market Drivers

      1. 5.2.1 Rapid adaptation of cloud based services among organisations

      2. 5.2.2 Increased Cyber Attacks

      3. 5.2.3 Rising trend of BYOD and CYOD to boost cloud security demand

    3. 5.3 Market Restraints

      1. 5.3.1 Data Privacy

      2. 5.3.2 The Complex Structure of Cloud Storage

    4. 5.4 Industry Value Chain Analysis

    5. 5.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 5.5.1 Threat of New Entrants

      2. 5.5.2 Bargaining Power of Buyers/Consumers

      3. 5.5.3 Bargaining Power of Suppliers

      4. 5.5.4 Threat of Substitute Products

      5. 5.5.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Application

      1. 6.1.1 Identity and access management (IAM)

      2. 6.1.2 Data loss prevention (DLP)

      3. 6.1.3 Security information and event management (SIEM)

    2. 6.2 By Security Type

      1. 6.2.1 Application Security

      2. 6.2.2 Database Security

      3. 6.2.3 Network Security

      4. 6.2.4 Web and e-mail security

    3. 6.3 By Organisation Size

      1. 6.3.1 Large Enterprises

      2. 6.3.2 Small-Medium Enterprises

    4. 6.4 By End-User

      1. 6.4.1 Healthcare

      2. 6.4.2 Banking and Financial Services

      3. 6.4.3 Retail and Consumer Services

      4. 6.4.4 Manufacturing

      5. 6.4.5 Transport and Logistics

      6. 6.4.6 IT and Telecom

      7. 6.4.7 Other End-Users

    5. 6.5 Geography

      1. 6.5.1 North America

        1. 6.5.1.1 United States

        2. 6.5.1.2 Canada

        3. 6.5.1.3 Mexico

        4. 6.5.1.4 Rest of North America

      2. 6.5.2 Europe

        1. 6.5.2.1 UK

        2. 6.5.2.2 France

        3. 6.5.2.3 Germany

        4. 6.5.2.4 Russia

        5. 6.5.2.5 Rest of Europe

      3. 6.5.3 Asia-Pacific

        1. 6.5.3.1 China

        2. 6.5.3.2 India

        3. 6.5.3.3 Japan

        4. 6.5.3.4 Australia-New Zealand

        5. 6.5.3.5 Rest of Asia-Pacific

      4. 6.5.4 Latin America

        1. 6.5.4.1 Brazil

        2. 6.5.4.2 Mexico

        3. 6.5.4.3 Rest of Latin America

      5. 6.5.5 Middle East & Africa

        1. 6.5.5.1 United Arab Emirates

        2. 6.5.5.2 Saudi Arabia

        3. 6.5.5.3 South Africa

        4. 6.5.5.4 Rest of Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Vendor Market Share

    2. 7.2 Mergers & Acquisitions

    3. 7.3 Company Profiles

    4. *List Not Exhaustive

    5. 7.4 Amazon Web Services

    6. 7.5 Microsoft Corp.

    7. 7.6 Cisco Systems Inc.

    8. 7.7 Palo Alto Networks Inc.

    9. 7.8 Trend Micro Inc.

    10. 7.9 Fortinet Inc.

    11. 7.10 Sangfor Technologies Inc.

    12. 7.11 Mcafee

    13. 7.12 Huawei Technologies Co. Ltd.

    14. 7.13 IBM Corporation

    15. 7.14 Intel Corporation

  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

Cloud Network Security Industry Segmentation

Cloud security is a set of policies, technologies, applications, and controls utilized to protect virtualized IP, data, applications, services, and the associated infrastructure of cloud computing. It helps in the protection against misuse or hacking of a system’s files or directories. The most common threats to the network include viruses, worms, Trojan horses, spyware, adware, zero-day attacks, hacker attacks, DDoS attacks, and identity theft.

The cloud network security market is segmented by enterprise size (small and medium enterprises, large enterprises), by security type (application, database, network, web, and e-mail), by type of application (IAM, DLP, SIEM), by end-user industry (government, BFSI, healthcare), and by geography.

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Application
Identity and access management (IAM)
Data loss prevention (DLP)
Security information and event management (SIEM)
By Security Type
Application Security
Database Security
Network Security
Web and e-mail security
By Organisation Size
Large Enterprises
Small-Medium Enterprises
By End-User
Healthcare
Banking and Financial Services
Retail and Consumer Services
Manufacturing
Transport and Logistics
IT and Telecom
Other End-Users
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
UK
France
Germany
Russia
Rest of Europe
Asia-Pacific
China
India
Japan
Australia-New Zealand
Rest of Asia-Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East & Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East & Africa

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Cloud Network Security Market Research FAQs

The Cloud Network Security Market is projected to register a CAGR of 18.1% during the forecast period (2023-2028).

IBM Corporation, Intel Corporation, Trend Micro Inc., Palo Alto Networks Inc. and Cisco Systems Inc. are the major companies operating in the Cloud Network Security Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).

In 2023, the North America accounts for the largest market share in the Cloud Network Security Market.

Cloud Network Security Industry Report

Statistics for the 2023 Cloud Network Security market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cloud Network Security analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Cloud Network Security Report Snapshots

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