A recent study performed by Transparency Market Research (TMR) projects that the global cloud security market will grow to a valuation of $11.8 billion by the year 2022. To put that into perspective, in 2014 TMR put the value of that same market at $4.5 billion.
The report, officially titled Cloud Security Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014-2022, was officially released on Thursday. In the report, TMR predicts that the cloud security industry is due to experience a 12.8% compound annual growth rate (CAGR) between 2015 and 2022.
There are a few different reasons behind the growth, as listed in the report, but they can be broken down into three distinct categories: Mobile, SMB, and security software.
It all starts with mobile. Smartphones are everywhere in the enterprise and, increasingly, devices not initially sanctioned by the company are making their way into the workplace through BYOD policies.
The growing BYOD trend has a host of perks in that it empowers employees to work they way they want to and lowers costs to the organization since it does not have to provide a device for the employee. Of course, it brings its own risks.
As employees use personal devices to access corporate SaaS products or cloud storage accounts, they could be putting the company’s data at risk. Because of this, many organizations with a BYOD policy are looking to enterprise mobility management (EMM) or mobile device management (MDM) security solutions.
Additionally, choose your own device (CYOD) trends offer more security in that the organization can account for specific models. But, as each model has its own unique quirks, the company must invest in security tools that can mitigate the potential risks associated with these differences.
The second key factor in the growth of the cloud security market, according to TMR, is overall growth in cloud use by SMBs. Cloud-based tools and services offer a lean alternative to pricey, in-house solutions that may be overkill for many small businesses. They can also scale more easily as SMBs grow or contract, or for businesses that have strong seasonal trends.
Other research supports this idea. In Odin’s 2015 SMB Cloud Insights report, they pegged the overall global cloud market for SMBs at $98.7 billion. However by 2018, Odine predicted that the overall market will grow to $158.9 billion.
Additional research predicts that, in the US alone, nearly 80% of SMBs will have adopted cloud computing by 2020.
The final aspect that is contributing to growth in the market is “ease of use of cloud security services,” according to TMR. The proliferation of another kind of SaaS—security as a service—lowers the barrier for companies to fully protect their cloud deployments.
However, this doesn’t mean that the market is growing at its full potential. According to a press release accompanying the report, “lack of awareness and skeptical nature of enterprises towards cloud services are restraining the cloud security market growth.”
Those interested in the report can find it here, with single user license starting at $4795.