Increasing Cyber-attacks to Boost Cloud Security Solutions Market

According to the latest market study released by Technavio, the global cloud security solutions market is expected to grow at a CAGR of close to 20 percent during the forecast period.

The market research analysis categorizes the global cloud security solutions market into four major end-user segments. They are:

BFSI
The BFSI sector has been the constant target of web-based attacks over the past three to five years. Hackers attempt to crash computer systems, steal clients' money, and harm capital markets. Cyber-attacks are increasing in lucrative sectors such as the banking, financial services, and insurance as well as the payment card industry where a high number of individual consumers operate.

Banks and credit card companies are allowing customers to make transactions and payments using the Internet. The high dependence of people on web applications for online purchases and related activities increases the risk of identity theft. The increased instances of cyber-attacks have raised fear and awareness in the BFSI sector about the growing use of viruses and malware to target networks and applications, leading to the increased demand for cloud security solutions.

Healthcare
The digitization of healthcare services worldwide has led to a higher demand for cloud security solutions. Healthcare organizations transfer their services to web-based applications that store critical information such as lab results and patient data. Confidential information, such as patient data, lab results, and billing information, are vulnerable to security risks in the absence of appropriate storage procedures.

The security and confidentiality of medical records and patient data must be ensured by providing secure user access to the data. This has resulted in the growing demand for cloud security solutions.

According to Amrita Choudhury, a lead analyst at Technavio for IT Security research, “One of the major reasons for adoption of cloud security solutions is the implementation of stringent regulations for maintaining patient privacy. Healthcare frauds and medical identity theft have made it necessary to adopt cloud security solutions in the healthcare sector.”

Retail
Customer expectation of more personalized retail experiences has led e-commerce retailers to develop their own apps to provide a convenient shopping experience even on the move. With the proliferation of mobile apps, cyber threats have also increased because of the vulnerabilities in the apps due to the lack of technical controls such as insufficient transport layer protection and poor security measures implemented by the mobile app owners.

There has been a significant increase in the number of online services provided by companies, which is leading to an upsurge in online transactions. Along with this, however, there has been an increase in the number of point-of-sale attacks, and most of these incidents occur in the retail sector, resulting in high-profile incidents impacting retailers' reputations.

“Increase in incidence of fraudulent transactions has led to the adoption of cloud security solutions in the retail sector. Also, the governments of countries such as the US and the UK are implementing stringent regulations such as Payment Card Industry Data Security Standard for the retail sector to enhance their security infrastructure, which augurs well for the growth of the cloud security solutions market,” says Amrita.

Government
Advances in technology, such as enterprise mobility, cloud computing, cloud storage, and Internet of Things (IoT), have helped the government sector to develop and expand its communication networks, which enables faster and easier networking and exchange of information. These advances, however, have led to the risk of network and application-based attacks in the sector, thus leading to increased demand for cloud security solutions.

The government sector requires solutions that can analyze and detect anomalies within cloud services in real time. Advanced targeted attacks in the government sector, including protocol attacks, intrusions, routing attacks, worms, and denial-of-service (DoS), are increasingly common because this sector is becoming more reliant on computer networks and devices. Organizations in the sector are required to protect critical data and assets from theft, exploitation, and sabotage, thereby resulting in the wide adoption of cloud security solutions.