Cloud Security Market Growth, Trends, and Forecast by 2028

The cloud security market is expected to grow from US$ 48.57 billion in 2022 to US$ 116.25 billion by 2028; it is estimated to grow at a CAGR of 15.7% from 2022 to 2028.

Security maintenance has become crucial in enterprises due to the growing number of online breaches and technological attacks. Cloud security provides numerous levels of protection within the network infrastructure against unauthorized access, data breaches, and distributed denial-of-service (DDoS) attacks. In 2022, Flexera, an American computer software company, conducted a study and projected that nearly 57% of organizations are moving their workloads to the cloud. Also, nearly 6 out of 10 businesses moved their work to the cloud. Therefore, the increasing number of companies using cloud-based infrastructure is propelling the adoption of cloud security solutions.

The presence of large well-known and financially strong companies in the global cloud security industry includes Amazon Web Services, Inc.; Microsoft; IBM Corporation; Oracle; and Google, Inc.. Owing to this, the bargaining power of buyers in the cloud security market is quite high. Furthermore, due to technological advancements in cloud security and surging managed container services, the bargaining power of buyers is estimated to remain high during 2019–2028. The major companies in the cloud security market use different strategies while planning solution and service models for different industry verticals. Continuous advancements in the technology sector are anticipated to put pressure on cloud security providers to adapt to the changes to sustain their market position.

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Cloud Security Market: Strategic Insights

Impact of COVID-19 Pandemic on Cloud Security Market Share

The COVID-19 outbreak dramatically impacted the global economy during its peak in 2020, hampering business activities across several industries across the world. It also disrupted the operations of several firms, clients, and partners for an indefinite period due to travel restrictions and business shutdowns. The remote and hybrid work model was rapidly growing due to tremendous investment in digital transformation.  Moreover, there was a massive adoption of cloud security, fueled by the pandemic, expanding data centers, government expenditure on huge smart cities, and public administration projects supporting enterprise adoption of emerging technologies. The software industry was unaffected during the pandemic as several businesses allowed their employees to work from home. Besides, companies increasingly adopted cloud security solutions and services to reduce manpower requirements for data maintenance. This enabled them to protect their workforce from possible infections while ensuring production was not hampered.

Market Insight – Cloud Security Market

Surging Use of Cloud-Based Solutions and Managed Security Services Fuels Cloud Security Market Growth

The demand for cloud-based services increased significantly during the COVID-19 pandemic due to the widespread adoption of the work-from-home model. Microsoft recorded a 775% spike in demand for its cloud service platform during 2021. Small and medium-sized enterprises (SMEs) are embracing managed security services since they lack the internal expertise to effectively manage cloud services. According to OTAVA, these strategies allow them to combine the advantages of a public cloud with the security of a private on-premises cloud environment. According to Flexera's 2020 State of the Cloud Report, enterprises are embracing cloud services, with 93% of them utilizing a multi-cloud strategy and 87% preferring a hybrid cloud strategy. There is a notable demand for cloud security services offered by significant cybersecurity suppliers such as Google, Microsoft, and Amazon. A few potential benefits of integrating cloud computing in the procedures and operations of SMEs are simplified access, rapid implementation, low IT infrastructure requirement, and low installation costs.

Deployment Model-Based Insights

Based on deployment model, the cloud security market is segmented into public, private, and hybrid clouds. In 2022, the public cloud segment accounted for the largest cloud security market share. Enterprises are highly deploying public cloud via third-party cloud service providers (CSPs) to manage applications and data within their infrastructure. Furthermore, key players in the market continue to provide built-in security tools, which help in protecting business-critical data. The general public, individuals, and businesses are largely attracted to public cloud infrastructures as they provide service scalability and ease the management workload for in-house IT staff. These factors are driving the cloud security market growth in the public cloud segment.

Players operating in the cloud security market are mainly focused on the development of advanced and efficient products.

• In August 2022, VMware Inc introduced significant enhancements to its unique lateral security capabilities to help customers achieve security for modern and traditional applications for multi-cloud environments, thereby boosting the cloud security market growth.
• In June 2022, Palo Alto Networks expanded the cloud-native application protection platform with capabilities such as context-aware software composition analysis and software bill of materials.

The regional trends and factors influencing the Cloud Security Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Cloud Security Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Cloud Security Market Report Scope

Cloud Security Market Players Density: Understanding Its Impact on Business Dynamics

The Cloud Security Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

The cloud security market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South America. In 2022, North America led the market with a substantial revenue share, followed by Europe. Further, Asia Pacific is expected to register the highest CAGR in the market from 2022 to 2028.

Amazon Web Services, Inc.; Microsoft; IBM Corporation; Oracle; Trend Micro Incorporated; VMware, Inc.; Palo Alto Networks, Inc.; Cisco Systems, Inc.; Check Point Software Technologies Ltd.; and Google, Inc. are among the key players operating in the cloud security market. The market report provides detailed market insights, which helps the key players strategize the growth in coming years.