Zero Trust Security Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Zero Trust Security Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The zero trust security market is expected to register a CAGR of 17% during the forecast period. Cloud applications and the mobile workforce are redefining the security perimeter where employees bring their devices and work remotely. Data is accessed outside the corporate network and shared with external collaborators, such as partners and vendors. Corporate applications and data are moving from on-premises to hybrid and cloud environments, and organizations need a new security model that more effectively adapts to the complexity of the modern context, embraces the mobile workforce, and protects people, devices, applications, and data wherever they are located which the core of the zero-trust security.

Key Highlights

• The increasing activities of cyber criminals who are becoming successful at penetrating and moving laterally within the security perimeter are expected to drive the implementation of zero-trust security because organizations that rely solely on on-premises firewalls and VPNs lack the visibility, solution integration, and agility to deliver timely, end-to-end security coverage. As evident, the rates of large-scale, multi-vector mega attacks are also growing, wreaking havoc on organizations and individuals worldwide.
• Zero trust security is emerging in recent years, which utilizes an identity provider to provide access to the applications and determines the authorization rights based on both the user and the device. Fundamental authorization rights include device and user identity checks to consider if the organization manages the device. While traditional and outdated approaches to security focus on bolting-on new security tools to secure the perimeter while trusting every resource inside, a new security model called zero trust does away with the concept of implicit trust.
• Also, the State of Zero Trust Security 2022 by Okta Inc. suggested that 97% of the respondents opting for Zero Trust security solutions and models, compared to 90% of companies in 2021 and 41% in 2019. The security environment is becoming more complex than ever, with it never being more challenging to protect data, assets, and networks. An organization can be supremely equipped to bolster its security posture and boost the protection of its most critical data-related assets by implementing Zero Trust Security.
• However, the required adaptability among the existing operating systems and proprietary software to integrate zero-trust security solutions must evolve. This also requires more skilled cybersecurity professionals to bolster the evolution through various supply chain stages and provide stringent responses to data breaches. According to the Global Cybersecurity Survey by Sophos Ltd., 66% of the companies in the United States lack the required budget for assuring data security. Such restraints must be addressed for implementing systems as efficient and sophisticated as zero trust security.
• According to the 2021 CIRA Cybersecurity Survey by the Canadian Internet Registration Authority (CIRA), the number of cyber-attacks increased to 36%, compared to 29% the year before. The survey also highlighted about 95% of the respondents continue implementing the cybersecurity changes made during the COVID-19 pandemic. Given the access provided through remote connectivity, the newly minted remote workforce, and the potential for limited security reviews, attackers take advantage of weaknesses to gain internal network access, which zero security solutions can prevent.

Key Market TrendsBFSI is Expected to Hold Significant Share

• Several players incorporate zero trust security to ensure digital banking safety, stressing digital financing mobile apps. In September 2022, Protectt.ai focussed on the mobile security space with its research and Mobile RASP (RunTime Application Self Protection) based solutions for safe Mobile Banking. The company announced the launching of AppBind, enabling Zero Trust Device Binding for Mobile Banking Apps.
• Further, the innovations taking such concepts to the latest technologies like Cloud platforms bolster the financial services, encouraging more vendors to develop stringent measures to ensure cybersecurity in the BFSI sector. In September 2022, 3i Infotech announced launching NuRe 3i+, powered by Oracle Corporation, among the few initial Zero Trust Sovereign Cloud solutions in Malaysia, helping SMBs and enterprises embrace transformation. The Zero Trust Sovereign Cloud platform would have data and operational sovereignty built into it, providing compliance to businesses aiming to retain data within the country's borders. NuRe 3i+ powered by Oracle would offer customers a full stack of cloud services across IaaS and PaaS, supporting cloud-native applications, as well as mission-critical applications and performance-intensive (HPC, GPU) workloads for business verticals from different sectors, like BFSI, public and government sectors, healthcare, and others.
• Meanwhile, according to the Cost of a Data Breach Report released by IBM, only 21% of critical infrastructure organizations comprising financial services industry players studied adopted a zero trust security model. Further, 17% of those critical infrastructure breaches could occur due to a business partner's compromise, highlighting the risks of over-trusting environments. In light of the expansion of the IoT and digital ecosystem, zero trust security measures must be carried out across different elements of a consolidated technology ecosystem, aiming to harness the real benefits of zero trust security policies.
• According to Global Findex Database 2021 by World Bank, approximately 82% of adults made a digital merchant payment in 2021, comprising over 100 million adults (11%) who did so for the first time after the pandemic. The COVID-19 pandemic had a positive impact, providing a contactless mode for payments, including online and in-person transactions. This has included the digital infrastructure extensively, exposing the financial system to cybersecurity vulnerabilities, which created considerable demand for fool-proof security models like Zero Trust Security.

North America is Expected to Hold Major Share

• North America is a primary hub for many major organizations across the world. The expansion of the various end-user industries and the increasing security perimeter drive the demand for zero-trust security in the region. The attacks' risks can impact the market varying from individuals and corporates to governments. Thus, securing the data has become a priority in the region. Moreover, cyberattacks in the North American region, especially in the United States, are rising rapidly. They have reached an all-time high, primarily owing to the rapidly increasing number of connected devices in the region.
• Now more than ever, the US government has focused on proactive cybersecurity measures. In March 2022, the President of the United States proposed a budget of USD 10.9 Billion for cybersecurity, allocating around USD 2.6 billion to the Department of Homeland Security’s (DHS) Cybersecurity and Infrastructure Security Agency (CISA), which is about USD 500 million more than the year before. Such investments by the government for strengthening cybersecurity at various stages pave the way for zero trust security model implementation.
• The regional market ecosystem has also observed many merger-acquisition transactions, further boosting the market growth. In February 2022, Cloudflare, Inc. agreed to acquire Area 1 Security to expand its zero trust platform. Area 1 Security’s cloud-native platform works seamlessly with any email offering, stopping phishing attacks by preemptively discovering and eliminating them before they can inflict damage in a corporate environment.
• According to Microsoft, the COVID-19 pandemic boosted the adoption of Zero Trust security models across about 76% of the organizations in the United States, compared to Japan (71%) and Australia/New Zealand (69%), against lower implementation rates in Germany (62%), displaying better adoption of hybrid workplaces in the US. Zero trust security could be implemented in various use cases by establishing new perimeters around sensitive and critical data. These perimeters include traditional prevention technology, such as network firewalls and access controls, as well as authentication, logging, and controls at the identity, application, and data layers.

Competitive Landscape

The zero trust security market primarily comprises multiple domestic and international players in quite a fragmented and highly competitive environment. The market poses high barriers to entry for new players as there are already various established players in the market. Technological advancements are also bringing sustainable competitive advantage to companies, and the market is witnessing multiple strategic partnerships and mergers.

• June 2022 - In the wake of Executive Order 14028 and the commitment to enhancing cybersecurity across the United States, Microsoft Corporation announced the expansion of Tenable’s collaboration with the Microsoft Intelligent Security Association (MISA). Microsoft and Tenable will help enhance the United States government’s ability to quickly identify, investigate, prioritize, and remediate threats, and help raise the country’s security posture by developing zero trust architectures and other tools for cybersecurity.
• May 2022 - Palo Alto Networks and Deloitte announced the expansion of their strategic partnership to offer managed security services to their shared US clients, making Palo Alto Networks a prominent cybersecurity technology portfolio available in outcome-based, managed offerings from Deloitte. The new agreement would offer threat detection and 5G security and enable the Zero Trust Enterprise for US organizations.

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• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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