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Cloud Network Security Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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  • 120 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4591663
UP TO OFF until Sep 30th 2023

Quick Summary:

The cloud network security market is driven by growth and advancement in every sector of industry, with protection against cyberattacks becoming central to business operations across the globe. The entry of new cloud security startups is adding much needed financial investment to this sphere, further fueling the emergence of innovative solutions for ensuring digital integrity and cyber-resilience.

Prominent industry players, such as IBM, Cisco and Intel, continue to make significant strides in the deployment of cloud-based networking technologies, incorporating robust security mechanisms right from the inception of new machines. The need for cloud security is further amplified by changing work environments and practices, underscoring the importance of the information contained within these market reports.

Such detailed market analysis will provide crucial insights for companies and establishments interested in safeguarding their data, enabling them to stay ahead of potential threats and fully realize the value of their investments in cloud technology. Moreover, the report highlights trends and recent business alliances, giving an edge to those looking to strategize in this continuously evolving digital landscape. From the expansion of Google Cloud practice to partnerships for better visibility and assessment in infrastructure environments, every element of this data-intensive arena is thoroughly covered.

The cloud network security market is expected to register a CAGR of 18.1% during the forecast period. Protection against cyberattacks is becoming more critical for industrial establishments. Therefore, industries are now considering implementing cloud network security right at the development stage for new machines and throughout their entire life cycle. The entry of new cloud security start-ups will bring more financial investment to the market, adding to the advancement and development of the service. The adoption rate for cloud storage became high during the COVID-19 period as the work-from-home option emerged significantly, and many companies continue to follow this. These modifications in the work environment are fueling the need for cloud security.

Key Highlights

  • The market comprises major players, such as IBM, Cisco, and Intel, who are the leaders in technology and the networking market (Cisco). Being early adopters and significant investors in cloud-based networking technologies, these players are pioneers in the market. To hold on to their competitive edges and positions in the market, these companies have continued to invest in this field.
  • Deloitte announced the expansion of its global Google Cloud practice, which will not only advance the company's cloud capabilities but also provide training and certification for cloud professionals. The clients will also benefit by helping them realize value from cloud investments.
  • CrowdStrike and EY signed an alliance to deliver cloud security and observability services. This venture will provide joint customers the ability to secure their cloud workloads with CrowdStrike Cloud Security and real-time visibility to better understand and assess issues in their infrastructure environments.
  • The COVID-19 pandemic affected every organization. There was a high demand for cloud storage, which required a secure and efficient operation due to the rise in work-from-home adoption, web-based conferences, and rising user traffic on the networks that connected users to these services.
  • Forecasts for the development of data centers indicate that construction on 4.1 GW worth of facilities is already underway in 55 regions, posing challenges for cloud network businesses to store, preserve, and secure this data.

Cloud Network Security Market Trends

Application-based Classification and Products to have Significant Demand for Cloud Network Security

  • Application-based segmentation and product availability have driven positive demand for cloud network security-based products in the market. Organizations opt for data encryption or other available means to safeguard information.
  • Commercial usage varies from the military-grade products and services used in defense to industry-grade products and services for financial businesses to public-use products and services. Some network applications require uninterrupted connectivity vital for the operation of the business, while others require the network to be operated continuously with a tolerance for disruption.
  • These factors decide the application-based implementation and usage of the product and drive the market in their respective segments. A failure of communication can be catastrophic and huge in terms of finances in the aviation and defense sectors, driving the demand for top-end products.
  • The number of apps used in the various sectors is increasing, while the financial services segment holds the major share as it serves the customer in various ways, like targeted customer promotions and product offers, bank appointment reminders, real-time alerts, bill reminders, and customer surveys.

United States Accounts for the Largest Share in the Cloud Network Security Market

  • The United States is the largest consumer of cloud network security in the world. This could be attributed to the presence of large enterprises, the growing frequency of cyberattacks, and the increasing number of hosted servers in the country.
  • Many cloud security-providing companies are headquartered in the United States, and the country is home to approximately 63% of the world’s privately-owned cybersecurity companies. Most of the companies pilot their new services in the country before launching them globally.
  • The rapid adoption of new technology in the country and the growing focus on security are pushing the market forward. The presence of large cloud service providers in the country, such as Microsoft and Amazon, is playing a significant role in the growth of the cloud security market.
  • US federal, state, and local government agencies rank last in cybersecurity compared to 17 major private industries, including transportation, retail, and healthcare. Presently, however, the government in this region has tightened the security norms to provide better cloud security.
  • With higher penetration levels in medium- and large-scale companies compared to the rest of the market, this segment of the market is expected to be the main buyer of network security solutions. Also, as smaller enterprises access their cyber exposures, growth in the adoption of cloud-based solutions is expected. As a result, investments in this sector are also expected to increase exponentially over the forecast period.
  • Moreover, there is huge growth potential in other industry segments in the country, such as manufacturing, energy, and utilities, as they have already migrated to digitally transformed methods of operation and are now beginning to get a better understanding of their cyber exposure.

Cloud Network Security Industry Overview

The global cloud network security market is highly fragmented, as several cyber threats are forcing governments and respective industries to invest more in their cyberspace. Increasing investment is driving many new players that offer solutions at lower prices into the market, which makes the market competitive. Some of the key players in the market are IBM Corporation, Intel Corporation, Trend Micro Inc., Cisco Systems Inc., and Huawei Technologies Co., Ltd. These players are constantly innovating and upgrading their product offerings to cater to increasing market demand.

In November 2022, Cisco and Red Hat joined hands to streamline hybrid-cloud container management. With this partnership customers can more easily turn-up and manage bare-metal containerized workloads.

In November 2022, Google Cloud and the Data Security Council of India (DSCI) together launched the "Secure with Cloud initiative, aimed at "demystifying cloud security" and encouraging cloud migration.

Additional Benefits:

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

This product will be delivered within 2 business days.

Table of Contents

2.1 Study Assumption and Market Definition
2.2 Scope of the Study
5.1 Market Overview
5.2 Market Drivers
5.2.1 Rapid adaptation of cloud based services among organisations
5.2.2 Increased Cyber Attacks
5.2.3 Rising trend of BYOD and CYOD to boost cloud security demand
5.3 Market Restraints
5.3.1 Data Privacy
5.3.2 The Complex Structure of Cloud Storage
5.4 Industry Value Chain Analysis
5.5 Industry Attractiveness - Porter's Five Forces Analysis
5.5.1 Threat of New Entrants
5.5.2 Bargaining Power of Buyers/Consumers
5.5.3 Bargaining Power of Suppliers
5.5.4 Threat of Substitute Products
5.5.5 Intensity of Competitive Rivalry
6.1 By Application
6.1.1 Identity and access management (IAM)
6.1.2 Data loss prevention (DLP)
6.1.3 Security information and event management (SIEM)
6.2 By Security Type
6.2.1 Application Security
6.2.2 Database Security
6.2.3 Network Security
6.2.4 Web and e-mail security
6.3 By Organisation Size
6.3.1 Large Enterprises
6.3.2 Small-Medium Enterprises
6.4 By End-User
6.4.1 Healthcare
6.4.2 Banking and Financial Services
6.4.3 Retail and Consumer Services
6.4.4 Manufacturing
6.4.5 Transport and Logistics
6.4.6 IT and Telecom
6.4.7 Other End-Users
6.5 Geography
6.5.1 North America United States Canada Mexico Rest of North America
6.5.2 Europe UK France Germany Russia Rest of Europe
6.5.3 Asia-Pacific China India Japan Australia-New Zealand Rest of Asia-Pacific
6.5.4 Latin America Brazil Mexico Rest of Latin America
6.5.5 Middle East & Africa United Arab Emirates Saudi Arabia South Africa Rest of Middle East & Africa
7.1 Vendor Market Share
7.2 Mergers & Acquisitions
7.3 Company Profiles
7.4 Amazon Web Services
7.5 Microsoft Corp.
7.6 Cisco Systems Inc.
7.7 Palo Alto Networks Inc.
7.8 Trend Micro Inc.
7.9 Fortinet Inc.
7.10 Sangfor Technologies Inc.
7.11 Mcafee
7.12 Huawei Technologies Co. Ltd.
7.13 IBM Corporation
7.14 Intel Corporation