Cloud-native Application Protection Platform (CNAPP) Market

[208 Pages Report] The global CNAPP market is projected to grow from an estimated values of USD 7.8 billion in 2022 to USD 19.3 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 19.9 % from 2022 to 2027. There has been an increase in cyber threats in the recent years. This factor is expected to contribute to the growth of the CNAPP market. There is a significant demand for CNAPP across verticals, such as BFSI, healthcare, retail and e-commerce, telecommunication, and others.

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Cloud-Native Application Protection Platform Market Dynamics

Driver: Adoption of BYOD and remote work options among SMEs

Organizations utilizing the BYOD concept with cloud-based systems enable employees to work remotely while using the office network. With the increasing popularity of public cloud offerings and BYOD policies, enterprises are eventually moving to the cloud deployment model. Organizations are rapidly adopting BYOD and work-from-home initiatives. Remote work helps companies avoid loss of productivity and protects public health. The health and economic crisis related to the COVID-19 pandemic and the required physical distancing measures force many firms to introduce work-from-home on a large scale. This may further catalyze wider adoption of teleworking practices after the crisis, with a wide range of impacts and uncertain net effects on productivity and other indicators. Cloud technologies help implement the work-from-home trend effectively. Also, a significant portion of SMEs is adopting the BYOD trend to reduce initial infrastructure expenses. Such high dependence on the BYOD and WFH trends urges organizations to secure their office cloud servers to enhance their security and maintain business continuity. This factor has enhanced the adoption of CNAPP solutions.

Restraint: Limited skilled expertise to implement and maintain CNAPP

The implementation and maintenance of CNAPP solutions require the necessary technical skills and knowledge. However, in recent years, organizations have been hiring security executives that lack the required expertise and knowledge. According to a report by Forbes in 2020, The Cloud Talent Drought Continues, advanced cloud and security skills are in higher demand than ever before; however, there is a significant lack of qualified, skilled professionals to support this movement, especially in non-tech-related industries. During the talent drought within the IT market that is affecting enterprise organizations, causing competitive disadvantages, security issues, and compliance risk, the pandemic has further accelerated the demand. According to the Challenges in Cloud Transformation report by Logic works in 2020, 86% of IT leaders thought a shortage of cloud talent would slow down cloud projects in 2020. According to an article by the Wall Street Journal in 2021, between 2017 and 2020, the annual postings of cloud jobs grew more than 90%, which is four times the rate of tech job growth overall in the same period, according to labor and economics research firm Emsi. The growing demand and lack of skilled professionals in the cloud technology sector is a restraint in deploying CNAPP solutions.

Opportunity: Increase in use of cloud-based solutions

Cloud-based solutions are increasingly being deployed across verticals. Cloud-based solutions support more efficient working and enable emerging capabilities in machine learning and artificial intelligence. Traditional security tools and approaches were designed to protect on-premises data centers and endpoints, not cloud-native apps and services. With the shift to cloud technologies, security teams need to be able to identify security issues and vulnerabilities early in development, speed up remediation and provide consistent security. According to the Flexera 2022 State of the Cloud Report, 57% of organizations are migrating more workloads to the cloud. The consumption of cloud, whether public, private, or a hybrid approach, continued to expand across all industry verticals and disrupt the ways in which IT provisions, manages, and orchestrates resources. In 2022, 53% of small and medium-sized businesses are now spending over USD 1.2 million annually, up from 38% in 2021. CNAPP provides an integrated set of security and compliance capabilities to secure cloud-native applications across development and production. Factors like cost optimization, flexible computing power, and lower cost are contributing to the increase in the use of cloud-based solutions, thus also driving the use of CNAPP solutions.

Challenge: Complexities in use of CNAPP solutions

In recent years, there has been a significant shift to the use of cloud services, which has given organizations unprecedented flexibility and scalability, enabling them to move forward with digital transformation efforts. For some organizations, it has also led to complex strategies in the deployment of the cloud. The reliance on multiple cloud vendors to run the entire IT infrastructure and the multiple/hybrid cloud strategy can result in complexities and challenges. This has also resulted in increased complexity in deploying CNAPP solutions. As cloud environments become more complex, the challenge of protecting data and applications in the cloud is even greater, and the controlling costs can also increase. As microservices expand with the increase in cloud services, the complexity of managing them also increases. Moreover, the cloud models are available in various service models such as Software-as-a-Service, Platform-as-a-Service, and Infrastructure-as-a-Service. Organizations face a crucial challenge when selecting the right infrastructure to deploy cloud security solutions as per the requirements. The more complex a cloud strategy becomes, the more difficult it becomes to determine the return on investment from the various services in use and to deploy the CNAPP solutions.

Cloud-native Application Protection Platform Market Ecosystem

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By offering, platform to grow at a higher CAGR during the forecast period

A CNAPP is an all-in-one cloud native software that simplifies monitoring, detecting, and acting on potential cloud security threats and vulnerabilities. CNAPP combines multiple tools and capabilities into a single software solution, minimizing complexity. CNAPP offers end-to-end cloud and application security throughout the CI/CD application lifecycle, from development to production. A CNAPP typically includes many tools to help scan and protect the cloud infrastructure and services. CNAPP solutions provide cloud application security tools, with the features added being vendor specific. Some of the CNAPP features include Cloud Security Posture Management (CSPM), Infrastructure-as-Code (IaC) Scanning, Cloud Workload Protection Platform (CWPP), and Cloud Infrastructure Entitlement Management (CIEM). The benefits of CNAPP include preventing cybersecurity threats by decreasing the number of cloud misconfigurations, providing combined and unique visibility of risks, allowing for prompt response to threats, and reducing complexity by eliminating the need to run and maintain multiple cloud security tools.

By organization size, large enterprises to hold a larger market size during the forecast period

Large enterprises are increasingly adopting CNAPP platform and the related professional services. The large enterprises have increasingly started deploying cloud-based solutions over on-premises solutions. The Covid-19 pandemic has accelerated the adoption of the BYOD and work from home trend, which has increased risks with the usage of cloud based solutions. This factor has led to market growth in the use of CNAPP. Large enterprises deploy cloud-based solutions due to high flexibility, and low maintenance costs. As businesses are moving towards using cloud for storing information, the requirement for CNAPP is also increasing. The increasing cyberattacks faced by large organizations is prompting them to adopt CNAPP platform and the associated services. For example, in the CNAPP market, Fortinet provides FortiCNP. FortiCNP simplifies cloud security operations and enables security teams to take actions by utilizing deep integrations with a broad range of cloud security products, services, and technologies.

By vertical, BFSI to hold a larger market size during the forecast period

The financial institutions are increasingly deploying cloud based solutions because of more convenience and reduced maintenance costs. Cloud deployment provides increased flexibility. The total costs of usage are reduced while using cloud based solutions as the costs related to deployment and maintenance is lesser than the on-premises counterparts. The pandemic has further prompted organizations to shift their data storage to the cloud environment. There is a growing need for security solutions in the BFSI industry to combat the growing physical and cyberattacks on the critical infrastructures that are taking place due to the increasing adoption of BYOD and Work from Home (WFH) trends. Additionally, financial institutions need to be compliant with several regulations and laws, including the PIPEDA and PCI DSS. This has further contributed to the growing use of CNAPP. CNAPP is a requirement by financial institutions to secure cloud resources and thus CNAPP has a significant application in the BFSI industry.

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

North America is expected to be the largest contributor to the global CNAPP market in terms of market share. It is one of the most advanced regions regarding security technology adoption and infrastructure. The region has recently experienced increasing digitalization and cloud technology adoption. IT spending on system infrastructure is slowly shifting from traditional solutions to cloud. Organizations are rapidly using cloud services for new initiatives or to replace existing systems. The regional presence of key industry players offering CNAPP contributes to driving the market growth in North America. The increasing cyberattacks witnessed in the region contribute to the growth of the CNAPP market in the region. According to the Internet Crime Report 2021 by the FBI, IC3 continued to receive a record number of complaints from the American public; 8,47,376 complaints were reported during the year, which was a 7% increase from 2020, with potential losses exceeding USD 6.9 billion. The strengthening of safety standards and regulations is another factor contributing to the growth of the CNAPP market in the region. The Cybersecurity and Infrastructure Security Agency (CISA) leads the national effort to understand, manage, and reduce cyber and physical infrastructure risks. It helps connect industry and government stakeholders with resources, analyses, and tools to help them build cyber, communications, physical security, and resilience. The PIPEDA applies to private sector organizations across Canada that collect, use, or disclose personal information during commercial activity. Organizations covered by the PIPEDA must generally obtain an individual’s consent when they collect, use, or disclose that individual’s personal information. People have the right to access their personal information held by an organization. The countries analyzed in the North America region include the US and Canada.

Key Market Players

The major vendors in the CNAPP market include Check Point (Israel), Trend Micro (Japan), Palo Alto Networks (US), CrowdStrike (US), Fortinet (US), Forcepoint (US), Proofpoint (US), Radware (Israel), Zscaler (US), Sophos (UK), Aqua Security (Israel), Cequence Security (US), Illumio (US), Runecast (UK), Data Theorem (US), MetaSecure (US), Tigera (US), Orca Security (US), Skyhigh Security (US), Caveonix (US), Wiz.io (US), Ermetic (US), Banyan Cloud (US), and Accuknox (US).

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Scope of the Report

Market Segmentation

Recent Developments

• In June 2022, Zscaler announced the launch of its Posture Control solution designed to give organizations unified CNAPP functionality to secure cloud workloads. Integrated into the Zscaler Zero Trust Exchange, the Posture Control solution enables DevOps and security teams to efficiently prioritize and remediate risks in cloud-native applications earlier in the development lifecycle. The solution correlates and prioritizes risks, such as unpatched vulnerabilities in containers and VMs, excessive entitlements and permissions, and cloud service misconfigurations.
• In September 2022, Zscaler announced the acquisition of ShiftRight, a leader in closed-loop security workflow automation. ShiftRight’s workflow automation technology is integrated into the Zscaler Zero Trust Exchange cloud security platform to automate security management for the growing influx of risks and incidents.
• In March 2022, Radware announced that it is expanding its partnership with Presidio, a global digital services and solutions provider that accelerates business transformation through security technology modernization. To protect its customers in on-premises, cloud, or hybrid environments, Presidio is adding Radware’s application and API security solutions, bot manager, DDoS protection, and Cloud Native Protector to its cybersecurity suite.

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