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

2023

The volume of the Russian cloud cybersecurity market grew to ₽5 billion over the year

The volume of the cloud cybersecurity market in Russia in 2023 reached 5 billion rubles, which is 4.5% of the total volume of cloud services. This is reported in a study that Sk Capital and Security Code published in early December 2024. Analysts predict an increase in this figure to ₽32 billion by 2028.

In the first half of 2024, more than 676 thousand attempts at cyber attacks were recorded in Russia, which is becoming a key factor in the development of the cloud protection market. In the Russian cybersecurity market, the five largest vendors control more than 40% of the market.

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Freepik

Sk Capital Executive Director Egor Popov notes that the growth rate of the cloud cybersecurity market exceeds 40% per year. This is due to both the low base effect and the increased penetration of cloud services into large and medium-sized businesses.

According to the study, the Russian cloud market has a high growth potential compared to global indicators. The share of spending on cloud services and infrastructure is 0.06% of GDP, which is 7 times less than the average in developed countries.

Pavel Korostelev, head of the Security Code product promotion department, emphasizes the relationship between the growth of the cloud services market and the security of cloud services, which requires an integrated approach to investment in these areas. Particular attention is paid to protecting the critical infrastructure of organizations when moving to the cloud.

Experts predict an increase in the share of cybersecurity services in the overall cloud services market from 4.5% to 7% by 2028. For comparison, the global figure is about 16%. The market is expected to grow at a CAGR of 46% between 2023 and 2028.

The main drivers of growth are universal digitalization, increasing the cost of loans and an increase in the tax burden, stimulating companies to look for solutions without large investments in infrastructure.^[1]

The volume of the global market for border secure access services grew by 13% over the year and reached $44.7 billion

At the end of 2023, global costs for cloud services in the field of information security reached $44.7 billion. For comparison, a year earlier, the volume of this market was estimated at $39.4 billion. Thus, an increase of about 13% was recorded. Industry trends are addressed in the Market Research Future survey published in mid-November 2024.

One of the key drivers of the market, analysts call the constantly changing and complicated landscape. cyber threats The emergence of new ransomware, phishing schemes and the development of complex cyber attacks ones forces companies around the world to strengthen their protection. IT infrastructures As attackers use new tools to organize intrusions, including tools, there artificial intelligence is a growing demand for efficient and adaptive solutions for. cyber security Businesses of all sizes - from small companies to large corporations - recognize that traditional protective measures are no longer enough. This stimulates the demand for specialized cloud services CSaaS (Cybersecurity-as-a-service - as cyber security a service). Operators of these platforms are constantly improving their systems with advanced technologies such as AI and, to machine learning predict, detect and respond to incidents in real time.

The introduction of strict data security requirements has a significant impact on the industry in question. Governments and regulators around the world are implementing laws to protect sensitive information, forcing organizations to invest in comprehensive cybersecurity solutions. In addition, the market is growing due to the development of the cloud ecosystem as a whole. Cloud computing provides numerous benefits, including scalability, cost-effectiveness, and availability, prompting organizations to migrate their operations to such platforms.

Analysts segment the market into five key areas: Managed Security Services, Incident Response Services, Information and Event Security Management (SIEM), Identity and Access Management, Risk and Compliance Management. The first of these categories in 2023 accounted for about $15 billion. Incident response services brought in $6.5 billion, and SIEM funds - $9 billion. The contribution of identity and access management services is estimated at $7 billion, risk management tools - at $7.2 billion.

From a geographical point of view, North America is leading in 2023 with costs of $20 billion: dominance is primarily due to advanced technological infrastructure and increased awareness of cyber threats. This is followed by Europe with $10.5 billion, and the Asia-Pacific region closes the top three with $10 billion. South America, the Middle East and Africa together provided approximately $4.2 billion. The key players in the global cloud information security services market are:

• Cisco;
• Sophos;
• Trend Micro;
• Broadcom;
• McAfee;
• FireEye;
• IBM;
• Check Point Software;
• CrowdStrike;
• ServiceNow;
• Fortinet;
• Zscaler;
• Radware;
• Okta;
• Palo Alto Networks.

At the end of 2024, revenue in the market under consideration is estimated at $50.7 billion. Market Research Future analysts believe that in the future the industry will continue to develop dynamically, and the CAGR (average annual growth rate in complex percentages) will be 13.43%. As a result, by 2032, costs on a global scale could rise to $139 billion.^[2]

The global cloud security technology market grew 31% over the year to reach $8.4 billion

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.^{[3] [4]}

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.^[5]

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