Market Size of Cloud Security Industry in Manufacturing
Study Period | 2019 - 2029 |
Market Size (2024) | USD 15.21 Billion |
Market Size (2029) | USD 34.90 Billion |
CAGR (2024 - 2029) | 18.07 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Cloud Security Market Analysis
The Cloud Security Market in Manufacturing Industry is expected to grow from USD 15.21 billion in 2024 to USD 34.90 billion by 2029, at a CAGR of 18.07% during the forecast period (2024-2029).
The manufacturing industry is rapidly evolving, and with it comes an increasing demand for agile system innovation and process support. This demand has led to the adoption of cloud security solutions, which offer greater visibility and flexibility to manufacturers.
- Manufacturing is one of the most highly targeted industries for cyberattacks, with almost half of all manufacturers have experienced a cybersecurity incident. This has resulted in significant financial losses and disruptions to business operations. As a result, a major portion of a company's budget is being spent on security solutions.
- However, migrating production processes from on-premise to the cloud can be challenging, as most production processes are currently supported by on-premise solutions. Manufacturers should focus on new events that can be transferred to the cloud while developing a more intelligent ERP system to handle older events, enabling manufacturing functions to scale as needed.
- Governments worldwide are investing in cloud-based computing delivery methods through public-private partnerships to advance innovative megacity enterprises and intelligent transportation networks. Cloud-based technology provides reliable, affordable, and scalable outcomes that can transform metropolises into digitally connected and intelligent structures. In the Middle East, governments are endorsing initiatives like the Dubai Internet City (DIC) and the Kingdom of Saudi Arabia (KSA) Vision 2030 to develop smart municipalities and innovative transportation services.
- Furthermore, in July 2023, Sight Machine Inc. announced that its Manufacturing Data Platform is now a certified solution for Microsoft Cloud for Manufacturing, further expanding its reach within the Microsoft Azure Marketplace. Sight Machine's multi-year participation in Microsoft's partner ecosystem for manufacturing enables organizations to assist manufacturers around the globe in transforming their businesses and unlock new levels of productivity and sustainability with leading cloud, data and AI-powered technology.
- However, large and small organizations may be hesitant to shift their operations to the cloud due to a lack of trust in cloud service providers (CSPs). CSPs hold critical data, making them highly vulnerable to complex cyberattacks that can discourage businesses from entrusting their nonpublic data to these providers.
- The COVID-19 pandemic increased the demand for cloud solutions, including cloud security solutions, due to an increase in phishing offenses. Scammers were using COVID-19 as a lure to generate income, and the shift to remote working made dispatch fraud schemes easier to execute as communication relies heavily on dispatch.
- In conclusion, the manufacturing industry's adoption of cloud security solutions is expected to grow rapidly, driven by cyber threats, demand for greater agility, and visibility in system innovation and process support. The government's investments in cloud-based technology will also contribute to market growth, though the issue of trust in CSPs remains a challenge. The COVID-19 pandemic highlighted the importance of cloud security solutions, which will continue to be in high demand in the foreseeable future.
Cloud Security Industry Segmentation
Manufacturers deal with sensitive data, like quality data, warranty information, device history records, and the engineering specifications for a product that are highly confidential. Although they are stored in public/private/hybrid cloud, security concerns still remain. Hence, cloud security is necessary for data loss prevention, endpoint security, and identity and access management.
The cloud security market in manufacturing is segmented by solution (identity and access management, data loss prevention, IDS/IPS, security information and event management, and encryption), security (application security, database security, endpoint security, network security, and web and email security), deployment mode (private, hybrid, and public), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.
By Solution | |
Identity and Access Management | |
Data Loss Prevention | |
IDS/IPS | |
Security Information and Event Management | |
Encryption |
By Security | |
Application Security | |
Database Security | |
Endpoint Security | |
Network Security | |
Web and Email Security |
By Deployment Mode | |
Public | |
Private | |
Hybrid |
By Geography | |
North America | |
Europe | |
Asia Pacific | |
Rest of the World |
Cloud Security Market in Manufacturing Size Summary
The cloud security market within the manufacturing industry is poised for significant expansion, driven by the increasing need for robust cybersecurity measures and the demand for agile system innovation. As manufacturing becomes a prime target for cyberattacks, the adoption of cloud security solutions is becoming essential to safeguard operations and financial stability. The shift from on-premise to cloud-based systems, although challenging, is supported by advancements in intelligent ERP systems and government initiatives promoting smart city developments. These efforts are further bolstered by partnerships and investments in cloud-based technologies, which offer scalable and cost-effective solutions for modernizing manufacturing processes.
In the Asia-Pacific region, rapid growth in the manufacturing sector is fueling the demand for cloud security solutions. Initiatives like the ASEAN Economic Community and mega trade agreements are enhancing regional economic integration, while significant investments in cybersecurity resources, such as IBM's Security Command Center, are preparing businesses to combat cyber threats. Major players in the cloud security market, including Cisco Systems, IBM, and Google, are expanding their services to meet the diverse needs of organizations. These developments, alongside strategic partnerships and new competencies, are shaping a dynamic market landscape, ensuring that cloud security solutions remain a critical component of manufacturing industry strategies.
Cloud Security Market in Manufacturing Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Introduction to Market Drivers and Restraints
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1.3 Market Drivers
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1.3.1 Growing Threats of Cyber Attacks is Expanding the Market
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1.4 Market Restraints
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1.4.1 Migration of Manufacturing Processes from On-premise to Cloud is a Major Challenge
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1.5 Value Chain Analysis
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1.6 Industry Attractiveness - Porter's Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Buyers/Consumers
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1.6.3 Bargaining Power of Suppliers
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1.6.4 Threat of Substitute Products
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1.6.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Solution
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2.1.1 Identity and Access Management
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2.1.2 Data Loss Prevention
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2.1.3 IDS/IPS
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2.1.4 Security Information and Event Management
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2.1.5 Encryption
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2.2 By Security
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2.2.1 Application Security
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2.2.2 Database Security
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2.2.3 Endpoint Security
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2.2.4 Network Security
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2.2.5 Web and Email Security
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2.3 By Deployment Mode
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2.3.1 Public
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2.3.2 Private
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2.3.3 Hybrid
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2.4 By Geography
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2.4.1 North America
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2.4.2 Europe
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2.4.3 Asia Pacific
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2.4.4 Rest of the World
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Cloud Security Market in Manufacturing Market Size FAQs
How big is the Cloud Security Market in Manufacturing Industry?
The Cloud Security Market in Manufacturing Industry size is expected to reach USD 15.21 billion in 2024 and grow at a CAGR of 18.07% to reach USD 34.90 billion by 2029.
What is the current Cloud Security Market in Manufacturing Industry size?
In 2024, the Cloud Security Market in Manufacturing Industry size is expected to reach USD 15.21 billion.