Cloud Security Services (Security-as-a-Service)

2023: Global Cloud Security Technology Market Grows 31% to Reach $8.4 Billion in a Year

In 2023, spending on the global cloud security technology market for the first time crossed the $8 billion mark, reaching $8.4 billion. Growth in relation to 2022 was recorded at 31%. The corresponding indicators are reflected in a study by Dell'Oro Group, the results of which TAdviser got acquainted with at the end of October 2024.

We are talking about solutions SASE (Secure Access Service Edge) - "secure access border service." This is a network security model in which security and network technologies are delivered in a package of cloud services from a single provider to provide fast and secure access for employees to network resources. The key components of SASE are:

• Software-defined wide area network (SD-WAN);
• Zero Trust Network Access (ZTNA) solution;
• Web Gateway Layer Security (SWG);
• Secure Cloud Access Broker (CASB);
• Cloud Firewall (FWaaS).

In addition, SASE service providers can offer additional elements such as sensitive data protection (DLP), threat detection and prevention solutions, DNS protection, isolated remote browser, and other network security services.

According to Dell'Oro Group estimates, in 2023, border security services (Secure Service Edge, SSE) as part of SASE accounted for over $4 billion with an increase of more than 30% on an annualized basis. In the SD-WAN segment, revenue exceeded $3 billion, and growth compared to 2022 was recorded at 28%. Six leading SASE vendors - Zscaler, Cisco, Palo Alto Networks, Symantec/Broadcom, Fortinet and Netskope - accounted for about 65% of total revenue in 2023.

Data on the global industry SASE is also cited by the analytical company Market Research Future. This firm estimates the market size in 2023 at $7.11 billion. Growth compared to 2022, when costs amounted to $5.28 billion, was at the level of 34%. From a geographical point of view, the leader is North America with a share of more than 40% in total sales. At the same time, the Asia-Pacific region is showing the highest growth rates. Among the key players in the market are:

• Cisco;
• Cloudflare;
• VMware;
• Fortinet;
• Palo Alto Networks;
• Akamai Technologies;
• Zscaler;
• Cato Networks;
• Versa Networks;
• Forcepoint;
• Broadcom;
• Checkpoint Software Technologies;
• McAfee;
• Aryaka Networks;
• Citrix Systems.

Analysts divide the industry in question into two segments: NaaS (network as a service) and SecaaS (security as a service). The second of these sectors occupies the largest share (approximately 56.7% at the end of 2022). With SecaaS, organizations can shift security management to specialized service providers, allowing them to focus on their core business operations. If we consider the industry by component type (, SD-WAN CASB, SWG, FWaaS,), ZTNA then the SD-WAN segment provides the largest revenue. Industry areas include banking, financial services and insurance (BFSI), retail and e-commerce IT , and telecommunications, government, etc health care. The BFSI sector provides about a third of the total cost.

Market Research Future analysts believe that in the future, the CAGR in the market under consideration will be 22.1%. Thus, by 2032, costs on a global scale, according to the estimates presented, could reach $42.86 billion.^{[1] [2]}

2017: Up 21% to $4bn

In 2017, the global market for cloud security services (Security-as-a-Service, SaaS) showed impressive growth. Against the background of more active implementation of Solutions SaaS at enterprises, revenue from such services increased by 21% and reached $4 billion. Such data were published on March 22, 2018 by the analytical agency Canalys.

Experts note that the growth rate in the SaaS segment was twice as high as in the entire information security technology market. In particular, in the segments of hardware and software information security solutions, there was a rise of 5% and 10%, respectively, and the total revenue in these two directions in 2017 amounted to $27 billion. The volume of sales in the global information security technology market as a whole in Canalys is estimated at $31 billion.

SaaS segment doubled the growth rate of the information security technology market, Canalys

Last year, companies such as Cisco McAfee Trend Micro have replenished their portfolios of cloud information security solutions, and now they include a wider range of products and provide almost the same set of functionality as in the case of buying a software license, "comments Canalys analyst Claudio Stahnke.

According to the specialist, the ability to purchase information security products from cloud providers and channel partners, such as Amazon Web Services (AWS), made it less difficult to put information security products into operation and provided flexibility in the billing process for customers.

Canalys predicts that the cloud security services market will continue to show confident upward dynamics throughout not only 2018, but also 2019. At the same time, a significant increase in sales of hardware and software security is expected. Experts believe that these two segments will continue to bring most of the revenue in the information security technology market.^[3]

See also

Cloud computing

• SaaS
• IaaS
• PaaS
• Private cloud

• Cloud computing: top definitions
• Public clouds vs Private clouds
• Creation of private clouds (Russian market)
• Main trends in the private cloud market in Russia
• Private Clouds - Typical Customers
• Cloud services (Russian market)
• Russian IT Services Market
• Private clouds in the public sector
• Private clouds in the banking sector
• Cloud Solutions for SMB
• How do I choose an IT service provider?
• Service companies: Western vs domestic
• Cloud Services Economics
• Global Cloud Services Market
• Top Trends in the Global Private Cloud Market

• Cybercrime in the world
• Cybercrime and cyber conflicts: Russia
• Cybercrime and cyber conflicts: US

Notes