Cloud Security Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The cloud security software market was valued at USD 29.5 billion in 2020 and is expected to reach a market value of USD 37.37 billion by 2026, registering a CAGR of 5.25% over the forecast period (2021 - 2026). The growing data generation and increasing complexity of technologies have resulted in a heavy dependence of organizations on cloud services for operations and data management. This growth in the adoption of cloud services has a direct impact on the demand for cloud security solutions. According to a study published by CenturyLink, Cloud computing is expected to generate USD 411 billion by 2020.

• Cloud technology and cloud-based resources help in mitigating the rise in lethal cyber-security threats. Cloud security adheres to a set of policies and controls, which are vital for the security of applications, data, and infrastructure. Threats, such as data breaches, data loss, and insecure application programming interfaces (API), are frequent on the cloud computing platform. ​The evolution of the cyber environment and related technologies paved the way for new threats. Cyber-attacks are highly targeted, persistent, and technologically advanced. ​
• Although the area of cloud computing is witnessing rapid growth since the past few years, data privacy and software security are rising concerns. According to the 2019 state of security operations report, 4.1 billion data records are exposed to data breaches and cyber-attacks. The most common cloud-focused threats involved brute-force or stolen credentials targeted IoT or aimed for Web applications with SQL injection, cross-site request forgery attacks, etc.​
• According to Checkpoint and cybersecurity insiders Cloud Security Report 2019, the top four public cloud vulnerabilities include unauthorized cloud access (42 percent), insecure interfaces (42 percent), misconfiguration of the cloud platform (40 percent), and account hijacking (39 percent). Also, Flexera Software reported that security was a significant challenge in cloud computing technology.​
• The BFSI sector is one of the most active users within the cloud, owing to the rise of mobile banking, Fintech, and virtual transaction services of PayPal, Google, etc. Banks are dealing with sensitive data places, which increases the risk of data leaks and cyber-attacks. According to IBM's cost of data breach report 2019, the average cost of data breach incurred by the United States company is USD 8.19 million.​
• Vendors offering security solutions are actively looking forward to collaborating their solutions with other managed security services providers. For instance, in January 2020, one of the key providers of endpoint security, SentinelOne, announced a partnership with CriticalStart, for integrating its endpoint protection capabilities into SentinelOne's EDR services. This has enabled the company's endpoint protection platform to centralize, ingest, and correlate security logs. Such partnerships are expected to continue in the future. ​
• With the growing cloud-based threat, companies in the market are introducing new solutions to cater to the needs of customers. For instance, in 2019, Microsoft launched the Azure Sentinel cloud security program. This is security information and event management tool that uses AI to go through data for threats using cloud computing. ​
• In February 2019, Check Point Software Technologies Ltd launched its newest addition to its product line, CloudGuard. CloudGuard Dome9 is the latest addition to its CloudGuard line, which primarily focuses on protecting cloud systems from more complex attacks. With CloudGuard Dome9, when a firm moves to a public cloud, it can be used to assess the security condition of a company, detect misconfigurations, and protect the company from data theft.​
• With the recent outbreak of COVID 19, the cloud security market is expected to witness significant growth as cloud-based services and tools are increasingly adapted due to organizations are deploying remote work access amid lockdown in various countries.​
• Microsoft, in Italy, noticed there was a 775% increase in calling and meeting monthly users for the Teams product in a one month period.​
• The increasing usage of cloud-based services during this pandemic is becoming a hotspot for cyberattacks as millions of people are working in unfamiliar, less secure circumstances. According to a Barracuda Sentinel, the number of coronavirus COVID-19-related email attacks has increased by 667 percent. Thus, a cloud security solution plays a vital role during this pandemic and is expected to witness a surge.​

Scope of the Report

The cloud industry has experienced rapid growth in its adoption in the last decade from technology-based companies. This trend is also followed by other industries like BFSI and Healthcare, due to their realization of the advantages offered by the cloud systems. This is creating an environment where cloud services are acting as the backbone of many business operations. ​The market is segmented by various types, deployment models across various end-user industries among different geographies.​

Report scope can be customized per your requirements. Click here.

Key Market Trends

Healthcare Sector to Witness the Significant Adoption of Cloud Security Market

• Healthcare organizations have become more distributed, owing to remote clinical offices, trial sites, rehab facilities, outsourcing, and off-site workers, leading each office and individual to require unique yet seamless access to applications and resources via. a plethora of different devices. Healthcare organizations recognize the benefits provided by cloud technology, such as greater flexibility, scalability, and availability of systems and applications
• With the advancements in healthcare, such as electronic medical records and other patient details being registered with the respective hospitals, the potential vulnerability for the data has been increasing, owing to which the implementation of network security has been of primary importance.​
• Significant breaches in the healthcare industry, such as those at Premera Blue Cross and Anthem Inc., impacted the popularity of cloud, in terms of data privacy, as protection of medical data is mandatory and essential. Healthcare records are an attractive target, because sensitive information can be utilized for identity theft or insurance fraud. Such factors are further expected to provide ample opportunities for the market’s growth.​
• According to the Protenus’ Annual Breach Barometer Report 2019, the number of breached patient records tripled in 2018, to the tune of some 15 million patient records. The increase in incidents, from 5,579,438 records in 2017 to 15,085,302 records in 2018 is modest uptick in health data breaches, from 477 in 2017 to 503 in 2018.​
• The use of AI and data-driven security monitoring, along with behavioral analytics, made cloud-based security more effective. For instance, Microsoft’s integrated intelligent security graph collects billions of data points on a day-to-day basis and uses machine learning and AI, to analyze and identify evolving cybersecurity attacks.
• Moreover, data from the SentinelOne shows that from February 23 to March 16 2020, with the onset of Coronavirus outbreak, there was an upward trend of attempted attacks in healthcare sector with peaks at 145 threats per 1,000 endpoints, compared to 30 or 37 at the start of that period.​

To understand key trends, Download Sample Report