• In February 2024, Mimecast, an AI,powered Email Security solution provider, reported Spamming, Phishing, and malware were the significant contributors to email threats worldwide in the fourth quarter of 2023, which shows the demand for cloud,based email security solutions in the market.

• In November 2022, Barracuda Networks, Inc. announced that Barracuda Email Protection had been integrated with Amazon Security Lake by Amazon Web Services (AWS). Barracuda Email Protection provides electronic mail security findings in collaboration with Amazon Security Lake. Combining the two options can address a wide range of security use cases, including threat detection, investigation, and incident response, while minimizing the difficulty and cost for clients using their security data from an electronic mail security solution.

In this report, the Cloud-based Email Security Market has been segmented by Deployment, Component, Organization Size, End User Industry, and Geography.

Cloud-based Email Security Market, Segmentation by Deployment

The Cloud-based Email Security Market has been segmented by Deployment into Public, Private, and Hybrid.

Public Cloud
The public cloud remains the most widely adopted deployment type in the cloud-based email security market, representing about 60% of usage. Its popularity stems from being cost-efficient, scalable, and ideal for organizations with limited IT infrastructure. Particularly favored by SMEs, public cloud solutions offer fast implementation and lower upfront investments, making them a go-to choice for modern businesses.

Private Cloud
The private cloud segment accounts for roughly 25% of the market, mainly driven by businesses that prioritize data privacy, security, and compliance. Commonly adopted by sectors like banking, finance, and healthcare, private cloud deployment ensures higher control over email security protocols and infrastructure, addressing the unique compliance needs of larger enterprises.

Hybrid Cloud
Capturing close to 15% of the market, the hybrid cloud approach is increasingly gaining traction. It combines the security of private cloud with the scalability of public cloud, offering a flexible framework for dynamic business environments. Hybrid deployments are particularly effective for organizations seeking data governance, cost control, and seamless scalability without sacrificing compliance.

Cloud-based Email Security Market, Segmentation by Component

The Cloud-based Email Security Market has been segmented by Component into Solutions and Services.

Solutions
Solutions lead the cloud-based email security market, contributing nearly 65% of the total share. These encompass advanced tools such as email encryption, spam filters, malware detection, and data loss prevention (DLP). The surge in phishing, ransomware, and business email compromise (BEC) attacks has prompted organizations to invest heavily in comprehensive email security solutions that offer real-time protection and policy enforcement.

Services
Services represent about 35% of the market and include offerings such as managed security services, email threat consulting, and technical support. As cyber threats evolve, companies are turning to service providers to manage their email security infrastructure. These services not only provide proactive threat detection but also offer expert support, making them especially valuable for organizations with limited in-house security resources.

Cloud-based Email Security Market, Segmentation by Organization Size

The Cloud-based Email Security Market has been segmented by Organization Size into Small & Medium Enterprises and Large Enterprises.

Small & Medium Enterprises
Small and Medium Enterprises (SMEs) account for about 55% of the cloud-based email security market. Their adoption is driven by the need for affordable, user-friendly, and cloud-native security solutions that require minimal infrastructure. With the rising tide of phishing, malware, and email spoofing attacks specifically targeting smaller businesses, SMEs are prioritizing agile solutions that offer strong protection without adding complexity.

Large Enterprises
Large Enterprises comprise roughly 45% of the market, primarily due to their need for robust, scalable, and integrated security platforms. Managing massive volumes of sensitive emails and complying with stringent data protection regulations makes enterprise-grade email security essential. These organizations invest heavily in advanced threat detection, AI-powered filtering, and compliance automation to safeguard operations across multiple regions and business units.

Cloud-based Email Security Market, Segmentation by End User Industry

The Cloud-based Email Security Market has been segmented by End User Industry into BFSI, Government, IT & Telecommunications, Retail, and Others.

BFSI
The Banking, Financial Services, and Insurance (BFSI) industry leads the cloud-based email security market, accounting for about 30% of total demand. Due to the high risk of data breaches and stringent compliance standards, this sector invests heavily in real-time monitoring, multi-layered encryption, and phishing prevention tools. The rise in cyberattacks targeting financial institutions has made secure email infrastructure a top priority.

Government
The government sector contributes nearly 20% to the market, driven by the need to protect classified information, citizen records, and inter-departmental communication. With increasing threats from cyber espionage and infrastructure-targeted attacks, agencies are adopting cloud-secured gateways, email filters, and identity management systems to maintain national security and operational integrity.

IT & Telecommunications
The IT and Telecommunications sector holds around 18% of the market. Its dependence on constant connectivity and digital platforms necessitates strong email security frameworks. With the growing frequency of zero-day vulnerabilities and email-delivered malware, this sector emphasizes AI-powered threat detection, sandboxing, and automated remediation for uninterrupted services.

Retail
The retail segment makes up roughly 12% of the market. As retailers rely more on email marketing, e-commerce, and customer databases, they face increased threats from spoofing, phishing, and account compromise. Cloud-based solutions are favored for their agility, cost-efficiency, and the ability to adapt quickly to seasonal traffic spikes and cyber threats.

Others
The Others category, comprising education, healthcare, manufacturing, and media, represents approximately 20% of the market. These sectors are embracing cloud-based email security to handle remote communication, data privacy, and compliance challenges. With increased digitalization, these industries require dependable email defense mechanisms to protect daily operations and sensitive user data.

Cloud-based Email Security Market, Segmentation by Geography

In this report, the Cloud-based Email Security Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Cloud-based Email Security Market Share (%), by Geographical Region

North America
North America dominates the global cloud-based email security market with nearly 35% share, thanks to its well-established cloud infrastructure, strong regulatory environment, and widespread awareness of cybersecurity threats. The high frequency of phishing, ransomware, and email fraud incidents has led enterprises in the U.S. and Canada to adopt advanced cloud-native email protection platforms.

Europe
With a market share close to 25%, Europe is driven by GDPR enforcement, a strong emphasis on data privacy, and growing threats to critical industries. Organizations across Germany, France, and the Nordic countries are focusing on email threat prevention, secure gateways, and compliance-ready email security platforms to address increasingly sophisticated cyberattacks.

Asia Pacific
Asia Pacific contributes approximately 20% and is the fastest-expanding regional market. Countries like China, India, and Australia are investing in cloud-based email protection due to the rising frequency of business email compromise, malware, and targeted phishing. Rapid digitalization and the adoption of cloud services in SMEs are also boosting growth.

Middle East and Africa
The Middle East and Africa (MEA) region holds around 10% of the market, where businesses are ramping up their cybersecurity capabilities to protect against evolving email threats. With increasing investment in smart cities, e-government, and banking infrastructure, cloud email security adoption is gaining momentum.

Latin America
Latin America, with its 10% share, is seeing a steady rise in demand for email security as digital transformation gains pace. Countries like Brazil, Mexico, and Argentina are focusing on cost-effective, cloud-hosted email protection solutions to counter rising attacks, particularly in healthcare, finance, and public sector domains.