Increasing adoption of cloud computing in various industries such as BFSI, government, healthcare, telecommunication, and others is anticipated to boost the growth of SaaS security industry market. Increased spending on the developments of cloud computing solutions will also contribute to the growth of the market. It is anticipated that the spending will reach up to USD 162 billion in 2020 which was USD 67 billion in 2015. The advanced technologies such as IoT, Big data, and others have increased the concerns related to security thus fueling the popularity of the SaaS security market.
The new report by Zion Market Research on the “SaaS Security Industry Market — Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 – 2024″ has a vast information about the market and its potential. The global SaaS security industry market was valued at around USD 1,600 million in 2016 and it is expected to reach more than USD 11,200 million by 2024. The global SaaS security industry market is expected to grow at a CAGR of more than 26.5% between 2017 and 2024.
SaaS (Software as a service), IaaS (Infrastructure as a service) and PaaS (Platform as a service) are three main categories of cloud computing and SaaS is a software distribution model. SaaS is an essential delivery model for many organizations. SaaS is mainly associated with two security concerns: security problems faced by cloud providers and security problems faced by customers.
Software as a service has many advantages such as:
- It is affordable
- Low initial cost
- Easy to deploy
- No infrastructure required
- Easy backup and recovery
The major factor driving the growth of global SaaS security industry market is increasing adoption of trends such as bring your own device (BYOD) and advanced technologies such as Big data and IoT across the globe. In addition, the growth of cloud computing, social media, connected devices, and availability of internet has increased the adoption of the SaaS security solution.
Increasing adoption of cloud computing in various end-user industries such as BFSI, government, healthcare, telecommunication, and others is anticipated to boost the growth of SaaS security industry market.
High complexity due to the virtualized infrastructure may limit the growth of SaaS security market. However, rising adoption of SaaS security solutions by small and medium enterprises will positively drive the growth of the market. It is estimated that 78% of SMEs in the U.S. will be adopting the cloud services by 2020.
By type, identity and access protection segment is expected to register the highest CAGR of around 29% between 2017 and 2024. With the help of identity and access management solutions, the organizations get a primary structure for the business processes for managing the electronic or digital identities. The identity and access management solutions comprise of security-policy enforcement applications, password-management tools, reporting and monitoring, apps and identity repositories. The increasing trend of facial recognition and digital identities will open up new opportunities for the growth of the segment.
Email protection segment is also expected to grow with a CAGR of 27% during the forecast period. Growing cases of cyber attacks, spam emails containing malware virus, and hacking activities across the globe have increased the data security concerns. Thus the popularity of the e-mail protection segment is increasing widely. It is expected that this segment will reach around USD 2480 million by 2024.
The large enterprise segment anticipates holding the largest market share in 2024. However, medium enterprise segment is anticipated to register highest CAGR of 29% between 2017 and 2024. Medium enterprises are increasingly adopting the cloud-based services owing to its flexibility. As the adoption rate of cloud technology is rising thus in order to save data, emails, network, and other essential data both large and SMEs are deploying SaaS security model.
By end user, BFSI segment held the largest market share of 33% in 2016. Everyday BFSI industry creates a huge amount of data and this industry is shifting towards the cloud-based solutions for storing its data. The growing digital identities in every industry and the rising trend of BYOD in the organizations have increased the chances of data theft and cyber attacks. Banking and financial industry manage a large amount of consumer data such as customers’ personal data, financial data, location, and identity thus BFSI industry is adopting SaaS security solutions for securing the vital information of their customers. The government organizations will also be increasingly adopting the SaaS security solutions and the expected CAGR is more than 29% of this segment.
By region, North America held the largest market share of 44% in 2016, whereas Asia Pacific anticipates growing at the highest CAGR of 31% during the forecast period in SaaS security market. This is due to the increasing adoption of the internet of things (IoT) and rising trend for bringing your own device within organizations. Most of the organizations in North America have adopted cloud services due to its features such as flexibility, automatic software update, disaster recovery, free capital expenditure, and data access from anywhere which has simultaneously increased the need for data security. Thus most of the U.S. based companies such as Google, Microsoft, and Amazon are making efforts in keeping their data and the customers’ information safe and secured owing to which the adoption of the SaaS security solutions has increased.
The report also covers detailed competitive outlook including company profiles of the key participants operating in the global SaaS security industry market. The key players included in this market are Barracuda Networks Inc., CA Technologies, Cipher Cloud, Cisco, Cloud Passage, Credant Technologies, Cyren, DriveLock SE, IBM, LogRhythm Inc., McAfee LLC., PandaSecurity, Phantom Technologies, ProofPoint6, SafeNet, SecureAuth, Symantec Corporation, Symplified Trend Micro, Trustwave, WatchGuard Technologies and others.
The prominent market players maintain the competitive edge in the global market by making investments in the mergers and acquisitions and by increasing their product portfolio. In Nov. 2017, Barracuda Networks, Inc. announced that it has acquired privately held Sonian Inc. a leading provider of public cloud archiving and business insights. This acquisition deepened the Barracuda’s cloud archiving and email security and management capabilities.