Cloud security spend booms as global market approaches $150B

Cloud security spend booms as global market approaches $150B

The largest market segment, meanwhile, is expected to be security services, at US$72.4 billion.

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The global cloud security market is set to see massive growth in 2021, with forecasts it will jump up 41.2 per cent year-on-year, to US$841 million.  

This comes from industry research firm Gartner, which claimed that the broader global information security and risk management technology and services market would hit US$150.4 billion during the year — an increase of 12.4 per cent year-on-year.  

Breaking out individual ASEAN markets, in Thailand, spending on information security and risk management technology and services is forecast to grow by 11 per cent to reach US$451 million in 2021. The security services category represents the largest segment in the country, at US$181 million, while cloud security is the fastest growing category, forecast to reach US$7 million, an increase of 266.4 per cent from 2020. 

Information security and risk management technology and services spend in Singapore, meanwhile, forecast to grow by 9.6 per cent to reach US$1.02 billion in 2021.  

As in Thailand, the security services segment represents the largest category, at US$702 million, with cloud security the smallest but fastest growing category, forecast to reach US$3 million, an increase of 39.2 per cent from 2020. 

For Indonesia, overall market spend is forecast to grow 15.6 per cent, to reach US$331 million in 2021. Network security equipment represents the largest category at US$128 million, with cloud security the fastest growing category, forecast to reach US$3 million, an increase of 277.6 per cent from 2020. 

In Malaysia, spending is forecast to grow by 15.9 per cent to hit US$709 million in 2021. The largest category is security services, claiming US$301 million, and cloud security is once again the smallest, but fastest growing, category, and is forecast to reach US$11 million, an increase of 276.3 er cent from 2020. 

Globally, and in line with much of ASEAN, the cloud security market segment is expected to see the most growth over the year, but it is also the smallest. The largest is security services — including consulting, hardware support, implementation and outsourced services — which is expected to reach US$72.4 billion.  

The growth rate in cloud security, according to the firm, reflects the continued demand for remote worker technologies and cloud security.  

“Organisations continue to grapple with the security and regulatory demands of public cloud and software as a service,” said Lawrence Pingree, managing research vice president at Gartner.   

“Looking ahead, we’re seeing early market signals of growing automation and further adoption of machine learning technologies in support of AI security. To combat attacks, organisations will extend and standardise threat detection and response activities.” 

Credit: Gartner

Within the cloud security segment, Gartner also claimed there is a notable rise with cloud access security brokers (CASB).  

“The pace of client inquiry indicates that CASB is a popular choice for cloud-using organisations,” said Pingree.   

“This is due to the growing popularity of using non-PC devices for interacting with core business processes, which creates security risks that can be mitigated effectively with a CASB. CASBs also enable safer interaction between SaaS applications and unmanaged devices.”  

Integrated risk management (IRM) technology was another segment flagged by Gartner, which saw “robust” growth driven by the coronavirus pandemic, and is forecast to jump up 12.6 per cent by the end of the year, to US$5.5 billion. 

“Areas of significant risk driving near-term demand include the advent of new digital products and services and the related health and safety uses, as well as third-party risks such as customer data breaches or supply chain attacks,” said John A. Wheeler, senior research director at Gartner. 

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29 Jul
Channel Asia WIICTA 2021
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