With just $1.41 billion in revenue in 2016, the global cloud security market is forecast to see tremendous growth over the next few years, reaching nearly $13 billion by the year 2024, particularly for protecting identity data in the cloud.
Cloud identity and access management accounted for the largest market share in 2016, reaching $287.3 million in revenue, according to new data from Hexa Research. Going forward, the firm expects nontraditional sectors like online gaming, digital content sales and social networking will fuel market growth.
By 2024, Hexa Research believes the total market revenue for global cloud security will reach $12.64 billion — almost 13 times greater than the $0.99 billion in revenue tracked in 2014.
Growth is also expected to come from government regulation, which will require companies to invest in data loss prevention and added security, ensuring the safety of sensitive data stored and shared in the cloud.
Last year, public cloud deployment services edged out private and hybrid solutions with 35.6 percent of the market, thanks to being easily available and inexpensive. However, future growth over the next seven years is expected to shift toward hybrid cloud solutions.
Banking and financial service institutions have thus far dominated the global cloud security industry, raking in $265.9 million in 2016. But over the next few years, it’s expected that new demand will come from retailers looking to secure online shopping, as well as government agencies looking to prevent damaging cyberattacks.
With widely expected growth in the cloud and accompanying needs for enhanced security, investors are betting heavily on the industry’s future. Earlier this year, enterprise software maker Okta filed for an initial public offering. The company specializes in identity management services for tracking employees, and currently has a market capitalization of over $2 billion.