Cloud Security Market - Forecasts from 2023 to 2028

Cloud Security Market - Forecasts from 2023 to 2028

The cloud security market is projected to grow at a CAGR of 14.20% to reach US$110.514 billion by 2028.

Cloud security is a form of cyber security that focuses on keeping cloud computing systems safe. This involves ensuring the privacy and security of data across internet systems, apps, and platforms. Cloud security refers to the technologies, protocols, and best practices that safeguard cloud computing environments, cloud-based applications, and cloud-based data.

Market Trends

The global Cloud Security market is expected to grow substantially, mainly due to the increasing cybercrime cases and the adoption of cloud services. The demand for cloud security has also increased due to innovations in smartphone technology, leading to an increase in the market size. Moreover, the adoption of stricter cloud security protocols by governments is another factor that inflates market demand. The North American region has been reported to have the largest market share, due to the increasing government initiatives to ensure strict cloud security measures. Moreover, with the increasing number of cybercrime cases, it is expected to continue leading the market in the forecasted period.

Growth Factors

Increasing adoption of mobile devices

Countries around the world have reported the growing adoption of smartphones and smart devices. Smartphones have become an essential tool in our day-to-day lives. With the development of features such as online shopping, online banking, social media services, and other important features, smartphones have made our lives easier. However, smartphones are vulnerable to cyberattacks, and with the growing adoption of smartphones, malware attacks are on the rise. Attackers can steal a user’s data through various methods, resulting in the loss of precious data or personal information.

One of the most common methods of cyber-attack is through unsecured Wi-Fi connections set up by attackers. Attackers can access mobile phones that are connected to such wireless networks, and gain access to confidential services, such as banking information or private data.

Increasing cases of crypto hacks have also emerged in the IT industry. Recently, Ronin Network, which developed the popular mobile game: Axie Infinity, reported that it lost about US$615 million in a crypto hack. Instances like these are key players in the cloud security market and are expected to increase the market demand in the forecasted period.

Increasing Cybercrime Cases

With the increasing adoption of cloud services such as banking, data storage, and other applications, the cases of cybercrime have increased. Moreover, due to the COVID-19 pandemic and lockdown measures, individuals and organizations have seen a significant increase in cybercrime cases, leading to the loss of huge sums of revenue.

The average total cost of a data breach jumped from US$3.86 million in 2004 to US$4.24 million in 2021, according to IBM, the highest total cost in the last 17 years of history. The average cost of breaches in which remote work was a factor in triggering the breach was US$1.07 million more than breaches in which remote work was not a factor. The Office for Civil Rights (OCR) has identified roughly 550 covered firms that suffered a data breach in 2021. The average cost of a ransomware attack was reported to be US$4.62 million in 2021, according to IBM, which is more than the average cost of a data breach (US$4.24 million).

In 2021, the IC3 received over 20,000 Business Email Compromise (BEC) reports, with estimated adjusted damage of US$ 2.4 billion, according to a study released in March 2022. Since 2016, business email compromise (BEC) breaches have resulted in global losses of at least $26 billion, according to the FBI.

According to IBM, the average total cost of a healthcare data breach increased by 29.5 percent, from $7.13 million in 2020 to $9.23 million in 2021. The most expensive data breaches occurred in the United States, costing $9.05 million per incident, followed by the Middle East at $6.93 million and Canada at $5.4 million.

The increasing instances of cybercrime have led authorities and organizations to implement strict security measures, safeguard the interests of the people, and provide a safe and secure environment for cyber services. For these reasons, the cloud security market is expected to rise.

COVID-19 Impact on the Cloud Security Market

The pandemic had a positive impact on the cloud security market. The COVID-19 pandemic led to a massive slowdown in industries all over the world. With the increasing number of infection cases, most countries have announced lockdowns and social distancing regulations. This led to an increase in the adoption of remote work by various organizations. This ultimately led to a rise in instances of cybercrime, such as data breaches, phishing, and scamming, which called for stricter security measures, and the cloud security market increased in demand.

Market Segmentation:

By Deployment Model

Private
Public
Hybrid

By Security Type

Email and Web Security
Cloud Database Security And Data Loss Prevention
Cloud IAM
Network Security
Others

By End-User

Government
Leisure
Retail
BFSI
Communication and Technology
Healthcare
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
Sweden
Denmark
Others
Middle East and Africa
UAE
Israel
South Africa
Others
Asia Pacific
China
Japan
South Korea
India
Australia
Others