The global cloud security market is predicted to reach US$11,840.1 mn by 2022. By deployment type, the global cloud security market is expected to be dominated by the hybrid cloud segment throughout the forecast period. The hybrid cloud segment is predicted to reach US$5,397.5 mn by 2022.
IT and Telecommunications to Lead Demand for Cloud Security Systems
By end-use industry, in 2014, the global cloud security market was dominated by the IT and telecommunications segment. By exhibiting a 13.50% CAGR from 2015 to 2022, this segment is expected to maintain its dominance in the global market. Based on service type, the data loss prevention segment is expected to exhibit 13.30% CAGR from 2015 to 2022 to dominate the global cloud security market. By region, the North America cloud security market is predicted to grow at a 12.1% CAGR from 2015 to 2022.
Flexibility in Managing Cloud Security Solutions to Benefit Organizations
Companies always aim to protect confidential information such as financial data, employee information, nondisclosure agreements, and property information. Cloud-based systems have enabled companies to better manage their confidential information. Companies have started adopting cloud security systems for better flexibility, cost cutting, and agility of IT infrastructure. “The demand for cloud security systems from small and medium companies is increasing,” states a TMR analyst. All these factors are predicted to propel the global cloud security market.
Lack of Awareness to Affect Demand for Cloud Security Solutions
Although cloud security solutions are being used by companies operating in developed areas, many companies in the developing areas are not aware of the advancements and innovations in cloud services. Skeptical nature of companies towards the adoption of cloud security services and the lack of awareness are two of the important factors predicted to hamper the global market.
Demand for Managed Security Services Continues to Increase
Data security has become the core concern for government and commercial organizations operating in various industries. Managed security service providers are adding innovations and advanced technologies in their services, which is a boon for the growth of the global cloud security market. Increasing cybercrimes, threats, security staffing concerns, and budgeting concerns have boosted the demand for cloud security solutions, states a TMR analyst.
The global cloud security market is highly competitive in nature and is dominated by few companies including IBM Corporation, Cisco Systems, Inc., Trend Micro Inc., Panda Security SL, and CA Technologies, Inc. Currently, the key companies are focusing on acquisitions and mergers to gain a competitive edge in the global market for cloud security. Leading players are aiming to acquire the startup companies to grow their business and expand their geographical presence. In 2014, Trustwave, Inc., acquired Cenzic, Inc and in 2015, the company signed an agreement with Singapore Telecommunications Limited. These mergers and acquisitions boosted the global market for cloud security. Transparency Market Research (TMR), in its new report, states that the global cloud security market is expected to exhibit a strong growth owing to rising demand from corporate data centers.