Cloud Security in Banking Market Size (2024 - 2029)

The banking cloud security market is experiencing significant growth driven by the increasing adoption of cloud computing solutions, which offer enhanced data protection and cost efficiency. Financial institutions are increasingly implementing blockchain technology to ensure secure data exchanges, addressing the rising cybersecurity threats that pose risks of data breaches and theft. The flexibility and scalability of cloud services allow banks to meet customer demands swiftly while managing security and privacy concerns through hybrid cloud models. Despite these advancements, the market faces challenges due to the inherent vulnerabilities in online components, which can be exploited by attackers, posing a constraint to market expansion.

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Market Size of Cloud Security in Banking Industry

Cloud Security in Banking Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 33.10 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Cloud Security in Banking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Cloud Security In Banking Market Analysis

The market for cloud security solutions in the banking sector is set to grow at a CAGR of 33.1% for the forecast period (2021 - 2026). More and more financial institutions are using blockchain technology or are in the process of implementing blockchain capabilities as it provides a very high level of safety and security when it comes to exchanging data, information, and money.

  • An increase in cybersecurity threat is driving the market as for banks. This threat is particularly imposing, as breached data exposes the opportunity for immediate and future theft. Cloud computing provides a very high level of data protection, especially for sensitive data that includes customer information.
  • Cost reduction, scalability, and efficiency by cloud computing are driving the market. Due to the constant decline in the absolute cost of IT equipment, many financial institutions have changed other production factors with IT. The essential idea of cloud computing is to deliver IT services, such as computer infrastructure or storage in a utility, thus, making these services ultimately more flexible and cost-efficient.
  • Additionally, meeting the customer demands immediately and the scalability of computer resources save the time of IT specialist and business users from engineering the system for peak load. Banks can handle the issues associated with security and privacy of data by building a hybrid cloud where important data keeps on private cloud and computing power resides in the public cloud.
  • However, vulnerability to attack is still a challenge as in cloud computing, every component is online, which exposes potential vulnerabilities. Even the best teams suffer severe attacks and security breaches from time to time in a bank, which is a restraint to the market.

Cloud Security In Banking Industry Segmentation

The cloud security in banking is required as the customers are now the driving force behind this sector and are forcing banks to try new business models. Banks can be benefited by deploying private cloud in the system with various cloud software such as cloud identity and access management software, cloud email security, etc.

By Type of Software
Cloud Identity and Access Management Software
Cloud Email Security Software
Cloud Intrusion Detection and Prevention System
Cloud Encryption Software
Cloud Network Security Software
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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Cloud Security in Banking Market Size Summary

The banking cloud security market is experiencing significant growth, driven by the increasing adoption of cloud computing solutions to enhance data protection and mitigate cybersecurity threats. Financial institutions are increasingly leveraging blockchain technology to secure data exchanges, which is crucial given the rising incidence of cyberattacks targeting banks. Cloud computing offers substantial benefits, including cost reduction, scalability, and efficiency, making it an attractive option for banks looking to optimize their IT infrastructure. The ability to build hybrid cloud environments, where sensitive data is stored in private clouds while leveraging public clouds for computing power, further enhances security and flexibility. However, the inherent vulnerabilities of cloud computing, such as exposure to online attacks, pose challenges that need to be addressed to ensure robust security measures are in place.

North America holds a significant share of the banking cloud security market, largely due to the high frequency of data breaches in the region. The increasing cyberthreat landscape has prompted banks to explore cloud solutions as a means to transform their operational models and enhance security. Retail banks, in particular, are quick to adopt cloud technologies to gain insights from data and improve security measures. Major players in the market, such as Google Cloud Platform, Salesforce, and Vormetric, are competing to provide innovative solutions to meet the evolving needs of the banking sector. Recent developments, such as Scotiabank's collaboration with Google Cloud Platform to protect personally identifiable information, highlight the ongoing advancements in cloud security solutions tailored for the banking industry.

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Cloud Security in Banking Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Introduction to Market Drivers and Restraints

    3. 1.3 Market Drivers

      1. 1.3.1 Increase in Cyber Security Threat

      2. 1.3.2 Cost Reduction, Scalability, and Efficiency by Cloud Computing

    4. 1.4 Market Restraints

      1. 1.4.1 Vulnerability to Attacks

    5. 1.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Software

      1. 2.1.1 Cloud Identity and Access Management Software

      2. 2.1.2 Cloud Email Security Software

      3. 2.1.3 Cloud Intrusion Detection and Prevention System

      4. 2.1.4 Cloud Encryption Software

      5. 2.1.5 Cloud Network Security Software

    2. 2.2 Geography

      1. 2.2.1 North America

      2. 2.2.2 Europe

      3. 2.2.3 Asia-Pacific

      4. 2.2.4 Latin America

      5. 2.2.5 Middle East & Africa

Cloud Security in Banking Market Size FAQs

The Cloud Security in Banking Market is projected to register a CAGR of 33.10% during the forecast period (2024-2029)

Google Cloud Platform, Salesforce, Vormetric, Inc., Boxcryptor and Trend Micro are the major companies operating in the Cloud Security in Banking Market.

Cloud Security In Banking Market Report Snapshots

Banking Cloud Security Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)