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% during 2022-2028.
The cloud security market growth is attributed to the surging cloud computing implementation toward data monitoring solutions, increasing digital transactions, and growing government regulations to improve cybersecurity across several industry verticals. As the telecom networks are distributed and diverse and are surrounded by on-premises data centers across the world, public and private cloud deployments are connected to the enterprise-wide-area network (WAN), which is accelerating the demand for the cloud security in the industry. In May 2020, Microsoft invested US$1.5 billion in cloud computing services across Italy. The country aims to create a storage system for sensitive data using cloud technology. Thales Italy, which developed comprehensive cloud security solutions, joined the CSA Group to help Italian organizations adopt fast and safe cloud services.
The US dominated the cloud security market in 2021, and the adoption of cloud solutions is at a mature stage in the country. While evaluating cloud security providers, organizations mainly focus on reducing operational costs, ability to integrate with various cloud platforms, and ease of deployment. The demand for cloud security has increased across several organizations to keep pace with business inventiveness. The massive adoption of cloud security in the US is mainly attributed to the presence of leading cloud security companies in the country. Amazon Web Services Inc., headquartered in the US, currently holds a 31% market share, followed by Microsoft with a 20% share and Google Cloud with 7%. Cloud services help cut operational costs and provide greater flexibility to companies. During the COVID-19 pandemic, several organizations stored customer data, employee data, intellectual property details, and other sensitive information on the cloud. All these factors surge the demand for cloud security solutions in the country.
Moreover, cloud adoption in the public sector has increased tremendously in Europe, with a major focus on digitally transforming workflows, commonly referred to as e-government initiatives. The government across several countriesdocumented its digital transformation strategy and public cloud adoption to bolster its position in the digital economy. Data centers and cloud platforms, being the core part of the country's infrastructure, implement technology to secure data and deliver essential services, primarily across the banking and energy sectors. The European Union Agency for Cybersecurity (ENISA) contributes to EU cyber policy and helps prepare for cyber challenges. It also designed the Information Assurance Framework (IAF), a set of criteria to assess the risk of adopting cloud services, compare different cloud provider offerings, and reduce the assurance burden on cloud providers.
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 insights, which help the key players strategize the growth of the cloud security market.
The ongoing developments in cloud security technology are strengthening the cloud security market growth. In September 2021, Trend Micro Inc. launched its first Cloud One regional data center in India to uphold data sovereignty and safeguard data privacy. The new data center also enables enterprises to adopt a SaaS-based security framework securely and aims at protecting servers, resources, and applications in the cloud.
The cloud security market is segmented on the basis of service model, deployment model, enterprise size, solution type, and industry vertical. Based on service model, the cloud security market is segmented into software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS). By deployment model, the market is segmented into public cloud, private cloud, and hybrid cloud. In terms of enterprise size, the cloud security market is bifurcated into large enterprises and small & medium-sized enterprises. Based on solution type, the cloud security market is segmented into email & web security, cloud identity & access management, data loss prevention, intrusion detection system/intrusion prevention system, security information & event management, and others. Based on industry verticals, the cloud security market is segmented into banking, financial services, and insurance (BFSI); IT & telecom; energy & utilities; government & public sectors; healthcare; manufacturing; and others.
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 cloud security 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.