Cloud Data Security Market

The global Cloud Data Security Market size is projected to grow from USD 4.4 billion in 2022 to USD 9.1 billion by 2027 at a CAGR of 15.5% during the forecast period. The rising occurrences of thefts and breaches and the rising popularity of cloud services among organizations are the primary factors driving the market growth. Moreover, securing social media, OS, online payment apps, and rising government initiatives to encourage smart infrastructure projects will drive the demand for these products in the near future.

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Covid-19 impact

The COVID-19 epidemic has altered how businesses function. It is stressing back-end support systems and increasing traffic on networks that connect users to these services as more employees utilize conferencing and collaboration services while working from home. Only service providers with enough architecture and a consistent level of customer service will be able to handle the additional load. Regarding their business continuity plans, cloud providers frequently face challenges. They must respond to challenging inquiries, such as whether their public cloud architecture is sufficiently durable and scalable to manage rising demand and if it can continue to provide services even if support personnel become unwell. They must continuously show that the auxiliary system is reliable enough to provide ongoing access to public cloud services and that the network infrastructure can handle the increased traffic volume. Cloud providers must, however, be aware of the hazards, chances, and events that may arise as a result of the pandemic for them to accomplish this. They must show that they are equipped to deal with sudden increases in demand. On the other hand, they also have the chance to show how their services' resilience and flexibility have been put to the test by the rapid and sharp rise in the number of individuals working from home. Cloud providers must also keep an eye on unfolding events to ensure they are proactive about meeting demand. Those that choose a reactive approach will struggle.

Cloud Data Security Market Dynamics

Driver: Rising adoption of cloud services by enterprises

Growth in the usage of cloud services across several sectors leads to an increase in reliance on the cloud for storage and other applications. The increasing number of internet users and the increased use of cloud services are the primary factors driving the adoption of cloud security solutions. As internet commerce develops, its significance will become more apparent. Businesses moving to the cloud increased quickly as a result of the speedy move to remote labor. Specifically, in their respective conference calls, Microsoft and Amazon noted the expansion of their cloud operations. Unlike Microsoft, which reported a 27% rise in revenue from Microsoft Azure and a 39% increase in overall cloud-related revenue, AWS recorded a 33% increase in sales to surpass the USD 10 billion mark. New channels for interacting with and reaching consumers, changes to organizational practices, and maintaining a competitive edge are other significant factors driving the rise in cloud use.

Additionally, the cloud is essential for helping organizations withstand lockout situations and erratic IT infrastructure, enabling them to grow more swiftly and increase their speed to market, agility, and responsiveness. The poll found that 67% of large companies had progressed cloud adoption, compared to 39% of medium-sized enterprises and 38% of small businesses that had just begun their cloud adoption journeys. However, 88% of medium-sized organizations and 92% of small enterprises have trouble managing security-related risks. To close the skill gap and address the significant lack of digital capabilities, organizations focused on new talent acquisition initiatives (73%) and launched automation projects (66%). The different cloud models and cloud service options offer organizations alternatives to implement the cloud in different ways and enable them to plan their technology budgets.

Restraint: Lack of cooperation and distrust between businesses and cloud security service providers

Due to the suspicion of cloud service providers, both big and small organizations are wary of moving their operations to the cloud (CSPs). There is a widespread lack of trust in these services due to unclear Service Level Agreements (SLAs), security or privacy standards, general terms and conditions, the infancy of cloud services, data breaches, and several other issues. Cloud service providers' infrastructure stores critical data for organizations, making them vulnerable to frequent and sophisticated cyberattacks. As a result, businesses may be hesitant to entrust these service providers with their confidential data. Cloud security service providers can assist companies in gaining clients by employing an open information security strategy. Such distrust in cloud computing technology for data storage inhibits the growth of the cloud security market.

Opportunity: Securing social media, OS, and online payment apps

Many financial services firms now require the use of cloud-based payment security solutions. Increased flexibility, security, data integration, and scalability are benefits of cloud-based security technology. The Payment Card Industry Data Security Standard (PCI DSS) must be followed for payment systems and cloud security programs to be compliant. In 2019, an Instagram user data breach exposed the sensitive personal data of at least 49 million users. The breach was caused by a vulnerable AWS server that was connected to the internet. These occurrences act as a warning to social media businesses to spend heavily on cloud security services to avoid security mistakes in the future. Cloud security companies are giving more services to protect home PCs. To secure personal computers, cloud security firms are increasingly providing security cloud subscription services (PCs) for Mac, Android, Windows, or Apple iOS mobile devices as BYOD, CYOD, and work-from-home practices are gaining traction.

Challenge: DevOps, DevSecOps, & automation and privileges & key management

Teams in DevOps and DevSecOps flourish when tasks are finished swiftly and effectively. They create highly automated CI/CD systems to do this. Automation makes faster software development cycles possible by ensuring that security measures are properly identified and applied in all code and templates from the beginning of the software development cycle. However, after the workload has been delivered, security-related changes might threaten the organization's entire security posture. They may possibly lengthen the time to market. Consequently, this poses problems for the industry for cloud data protection. The configuration of cloud user roles is typically quite lax, granting privileges that are neither necessary nor intended. For instance, giving database write or delete privileges to an inexperienced user or a person with no business need to add or delete database assets. Another critical risk at the application level may occur when improperly configured keys and privileges expose sessions to security risks. Thus, creating a challenge for the cloud security market.

Cloud data security market ecosystem

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By offering, solutions segment to account for larger market size during forecast period

By offering, the market is segmented into solutions and services. The demand for cloud security solutions has increased within the last two years as many businesses have quickly adopted these solutions to support remote work. This is due to the fact that cloud-based security solutions offer increased flexibility, security, data integration, and scalability. A complete data lifecycle, from creation to disposal, is protected by a strong cloud security solution. Furthermore, a scalable cloud computing solution can adapt capacity, security coverage, and pricing in response to changes in demand. For instance, server capacity is increased to prevent server breakdowns during times of high demand. Additionally, a cloud security solution gives ongoing support for a business's digital assets and offers remedies when environmental disruptions pose a hazard. This includes continuous live monitoring to handle problems immediately, 24x7x365. Thus, cloud security solutions have the highest market size during the forecast period.

By region, North America to have the largest market size during the forecast period

North America dominates the global cloud data security market with a large number of vendors, such as Crowdstrike, Check Point, IBM, Palo Alto Networks, and Digital Guardian, resulting in the adoption of cloud data security solutions in the region. Increasing incidents of security breaches, rising adoption of cloud technology by organizations in their businesses, and increasing migration to the cloud are leading to the growth of the cloud data security market in the region. Furthermore, the rise in digitization, growing concerns for security, and the quest to safeguard assets are expanding the cloud data security solutions in the North American region.

Key Market Players

CrowdStrike (US), Check Point (US), Palo Alto Networks (US), Zscaler (US), IBM (US), Imperva (US), Veritas (US), Digital Guardian (US), VMware (US), and Thales (France) are some of the key players operating in the global cloud data security market.

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Scope of the Report

The study categorizes the cloud data security market by offering, organization size, offering type,  vertical, and region.

By Offering

• Solution
• Services

By Organization Size

• Large Enterprises
• Small and Medium-Sized Enterprises (SMEs)

By Offering Type

• Fully Managed
• Co-Managed
• Vertical
• BFSI
• Retail and eCommerce
• Government and Defense
• Healthcare and Life Sciences
• IT and ITeS
• Telecom
• Other Verticals

Region

• North America
• Europe
• Middle East and Africa
• Asia Pacific
• Latin America

Recent Development

• In October 2022, Check Point enhanced its solution named Check Point's Quantum Titan, which combines AI and deep learning technology to defend against the most sophisticated attacks, such as zero-day phishing and domain name system exploits. This provides better and more efficient security across a company's complex, distributed networks, both on-premises and in the cloud.
• In July 2022, Crowdstrike unveiled a new service, Falcon OverWatch Cloud Threat Hunting, a service that enables security teams to continually find hidden and sophisticated threats. It continually scans the cloud for suspicious behaviours and threats. The system is built on a cloud sensor network that protects over 1.5 billion containers daily and gives real-time visibility into cloud-based threats.
• In November 2021, Palo Alto Networks partnered with Siemens (Germany). Palo Alto Networks announced the extension of its technology partnership with Siemens to improve the security of mission-critical networks and prevent the threat of cyberattacks on critical infrastructure.
• In October 2021, ZScaler partnered with Crowdstrike (US). This integration allows Zscaler ZIATM to use CrowdStrike Falcon ZTA (Zero Trust Assessment) device scores to configure access policies. With this partnership, clients of Zscaler and CrowdStrike may now extend zero trust security to both internal and external apps using Zscaler.

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