The global cloud security market is expected to grow at a CAGR of over 20% until 2019, according to Technavio.
“A key reason for the adoption of cloud security is the sudden increase in cloud-specific attacks. One of the reasons for such attacks is the growing use of cloud-based services that require users to reveal their credentials. This affects the confidentiality of user data, and it has resulted in several cases of identity theft,” said Amrita Choudhury, one of Technavio’s lead analysts for embedded systems research.
“The attack on Amazon.com in April 2011 is one such instance which led to a prolonged outage of Amazon services. Subsequently, Amazon’s Elastic Block Store service was interrupted and was unable to accept customer requests. Another instance was the breach of e-mail marketing provider Epsilon in March 2011, which saw many companies, including large investment banks, being affected. Furthermore, the rise in cloud-specific attacks is fueled by the absence of strict guidelines and regulations. Thus, constant threats to cloud-based services is driving many companies to adopt cloud security solutions,” added Amrita.
Global cloud security market by solutions 2015
- Cloud IAM: 42.68%
- Cloud e-mail security: 26.87%
- Cloud IDS/IPS: 16.65%
- Cloud DLP: 13.80%
Global cloud IAM market: largest segment
The global cloud IAM market was valued at close to USD 1.05 billion in 2015. Cloud IAM solutions have subscription fees for maintaining, monitoring, and upgrading services, which include training and support. The global cloud IAM market will witness significant growth during the forecast period due to the growing need for high-level security of data and identity security in corporate firms. The need for advanced security solutions is growing rapidly due to an increase in the number of attacks and threats from hackers.
The adoption of cloud IAM solutions is growing among large enterprises and SMBs with increasing amounts of critical and confidential data being transferred. These solutions provide enterprises with greater control over access to applications and sensitive information from remote locations. High professional and personal use of mobile devices is also driving the demand for cloud IAM, as these are highly susceptible to attacks.
Global cloud e-mail security market: second largest segment
The global cloud e-mail security market was valued at USD 662.4 million. Any sensitive information transmitted through e-mails, potentially exposes an organization to cyber-attacks. Organizations face challenges such as loss and leakage of sensitive data that damage their market reputation. Access to corporate e-mails on various networks, within and outside an organization has therefore led increased instances of credential theft, insider fraud, and e-mail spam.
Employees in the healthcare, BFSI, government, transportation, and retail sectors often work remotely or do not spend all day at the desk. This compels companies to provide their employees with access to e-mail, databases, and stored documents through the cloud.
Organizations’ therefore need to be cautious as they look to provide these services and access to their networks through the cloud. This trend has increased the demand for cloud e-mail security and it is expected to positively impact market growth over the next four years.
Global cloud IDS/IPS market: third largest segment
The global cloud IDS/IPS market was valued at USD 410.4 million in 2015. The sophistication of cyber threats and hacking attempts is a major factor that drives the growth of the global cloud IDS/IPS market.
An exorbitant increase in the number of intrusion attacks on organizational networks and applications located in cloud service provider’s remote servers has motivated enterprises and CSPs to increase their spending on cloud security. Instances of internal frauds, and high dependence on cloud computing have further fueled the demand for cloud IDS/IPS among enterprises.