Market Trends of Cloud Network Security Industry
Application-based Classification and Products to have Significant Demand for Cloud Network Security
- Application-based segmentation and product availability have driven positive demand for cloud network security-based products in the market. Organizations opt for data encryption or other available means to safeguard information.
- Commercial usage varies from the military-grade products and services used in defense to industry-grade products and services for financial businesses to public-use products and services. Some network applications require uninterrupted connectivity vital for the operation of the business, while others require the network to be operated continuously with a tolerance for disruption.
- These factors decide the application-based implementation and usage of the product and drive the market in their respective segments. A failure of communication can be catastrophic and huge in terms of finances in the aviation and defense sectors, driving the demand for top-end products.
- The number of apps used in the various sectors is increasing, while the financial services segment holds the major share as it serves the customer in various ways, like targeted customer promotions and product offers, bank appointment reminders, real-time alerts, bill reminders, and customer surveys.
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United States Accounts for the Largest Share in the Cloud Network Security Market
- The United States is the largest consumer of cloud network security in the world. This could be attributed to the presence of large enterprises, the growing frequency of cyberattacks, and the increasing number of hosted servers in the country.
- Many cloud security-providing companies are headquartered in the United States, and the country is home to approximately 63% of the world's privately-owned cybersecurity companies. Most of the companies pilot their new services in the country before launching them globally.
- The rapid adoption of new technology in the country and the growing focus on security are pushing the market forward. The presence of large cloud service providers in the country, such as Microsoft and Amazon, is playing a significant role in the growth of the cloud security market.
- US federal, state, and local government agencies rank last in cybersecurity compared to 17 major private industries, including transportation, retail, and healthcare. Presently, however, the government in this region has tightened the security norms to provide better cloud security.
- With higher penetration levels in medium- and large-scale companies compared to the rest of the market, this segment of the market is expected to be the main buyer of network security solutions. Also, as smaller enterprises access their cyber exposures, growth in the adoption of cloud-based solutions is expected. As a result, investments in this sector are also expected to increase exponentially over the forecast period.
- Moreover, there is huge growth potential in other industry segments in the country, such as manufacturing, energy, and utilities, as they have already migrated to digitally transformed methods of operation and are now beginning to get a better understanding of their cyber exposure.
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