The rate of cloud technology adoption among enterprises has risen significantly in recent years. However, this increase in adoption has also given rise to incidents of cloud security vulnerabilities, leaving enterprises to look for cloud security solutions.
This situation has precipitated a boom in the cloud security market. According to a comprehensive market report by MRA, the cloud security market is expected to reach $123.3 billion by 2032 at a CAGR of about 24.4%. As a result of this emerging market trend, cloud security players will be aiming to provide more cloud security service packages for their customers.
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According to the report, major cloud security companies will aim to expand the role of hybrid-cloud packages, threat intelligence, add more data and other security services to their solutions. The report further stated that some cloud security packages would strive to feature open-source technologies for hunting threats and automation capabilities to automate and speed up response to cyberattacks.
Factors fueling the cloud security market boom
From the MRA report, some factors that will fuel the cloud security market within the forecast period include the growing threats of cyber-attacks on cloud data and the need for cloud security solutions to protect the confidential data saved on the cloud from unauthorized access.
For example, a recent State of Cloud Security Report by Snyk reveals that 80% of organizations were hit with critical cloud security incidents last year. In a similar report, IT Governance announced that it recorded about 1,243 security incidents in 2021, representing an 11% increase in security incidents recorded in 2020.
Another factor that will drive the rise in the cloud security market is the growing cloud services usage among organizations of all sizes to store their confidential data in the cloud. A Statista public cloud services growth worldwide 2022 and 2023 report revealed that the public cloud services market is expected to grow by 30.5% in 2023 compared to 2022.
One other factor that will fuel the growth of the cloud security market within the forecast period is the burgeoning popularity of cloud infrastructure and enforcement of standard industry regulations. Cloud infrastructure-as-a-service has gained a lot of traction in recent years. At the same time, private and government IT security regulatory bodies are expected to monitor how these cloud platforms incorporate cloud security into their infrastructure. With proper regulation and monitoring.
Competition and investment outlook within the forecast period
With this positive cloud security market report, we could witness more competition among the key cloud security players in the coming years. According to the MRA report, some of the established players in the global cloud security market include IBM, Symantec, Cisco, CA Technologies, Microsoft, Trend Micro, Okta, Cloud Passage, Fortinet and Intel.
There are other firms that are active in the cloud security sector. For instance, VMware, Palo Alto Networks, Netskope, Nutanix, CrowdStrike, Rackspace, Oracle and Qualys are all names to keep an eye on.
Given all these market players, more competition will unfold as each company aims to grab its market share. Having a competitive edge in the market will require these big players to develop strategic business approaches. As a result, there is a high chance of more mergers and acquisitions, expansion and collaboration in the cloud security ecosystem. Plus, more cloud technologies will launch during this period.
The MRA cloud security market report further projects that more cloud security start-ups will spring up, resulting in more financial investment in the market. This projection is playing out already as Opus Security, a cloud security orchestration and remediation platform, recently announced raising $10 million in seed funding to help tackle cloud security threats. With these funds, Opus Security hopes to expand its footprint in the US with some cloud security solutions.
In a similar development, Dig Security, a start-up developing security tools, announced that it raised $34 million in a seed funding round to enable it to expand its cloud security platform and tackle cloud data security issues arising in the cloud computing industry.
The cloud security sector is not just about funding and healthy bank balances. Partnerships are a popular theme and show how companies are keen to foster relationships and stay ahead of the pack. This week, Orange Cyberdefense, a cybersecurity services provider, and Netskope, a secure access service edge provider, announced they are partnering to deliver a new security service edge solution embedded into the Orange Telco Cloud Platform.
Cloud security market by geographical segments
Although cloud security is a global phenomenon, the boom during the period covered by the MRA report predicts that North America will continue to lead in the global cloud security market. Part of the reason for this is the significant technological advancements driving market growth in the region. This vast technological transformation going on in the region offers a good platform for cloud security.
Europe is another region where the cloud security market will thrive. As reported in the MRA research, network infrastructures and growing industries in the region are rapidly advancing, creating substantial market demand. The MRA report further stated that advances in security solutions, cloud technology, the proliferation of artificial intelligence and Internet of Things connected devices will boost Europe’s cloud security market revenues.
In the Asia Pacific region, factors such as the growing demand for corporate data security from unauthorized access and cyber-attacks will create huge market demand. In addition, the rise in the implementation of cloud computing security in more companies is expected to increase market sales in the region.