• December 2022, The Pentagon signed cloud computing contracts worth $9 billion with Alphabet Inc.'s Google, Amazon Web Services Inc., Microsoft Corp., and Oracle Corp. IBM was kept off this contract list. These contracts will build a bridge between the Defense Department and private sector companies. The Department of Defense will have access to enterprise-wide, globally available cloud services across all security domains and classification levels.
• November 2022, IBM announced the release of a technical preview of its Incident Management Software as a Service (SaaS) offering. According to IBM, this new SaaS service is designed to help organizations understand the status of their application and infrastructure resources and provide the ability to address some of the core challenges faced by central IT Operations during incident triage.
• October 2022, Intel and Google Cloud launched a new chip to improve data center performance. This co-designed chip can make data centers more secure and efficient. Companies are using progressively bigger data sets, but the performance improvement of chips like CPUs is slowing down. To make the data center itself more productive, cloud companies are therefore looking for innovative ways for data storage and security.

In this report, the Cloud Network Security Market has been segmented by Offering, Deployment Mode, Organization Size, Industry Vertical, and Geography.

Cloud Network Security Market, Segmentation by Offering

The Cloud Network Security Market has been segmented by Offering into Solution and Services.

Solution

The Solution segment dominates the cloud network security market, contributing over 65% to overall deployment. Businesses are focusing on integrated tools like advanced firewalls, intrusion prevention systems, and secure web gateways. The increasing need for real-time threat detection and robust policy management continues to fuel solution-based investments.

Services

The Services segment is expanding swiftly, with a CAGR of more than 18%, as companies seek expert support for security implementation and maintenance. Managed and professional services now support nearly 55% of organizations aiming to reduce internal IT burden. These services offer continuous threat monitoring, system integration, and regulatory compliance assistance.

Cloud Network Security Market, Segmentation by Deployment Mode

The Cloud Network Security Market has been segmented by Deployment Mode into Public Cloud, Private Cloud, and Hybrid Cloud.

Public Cloud

The Public Cloud segment leads the deployment landscape in cloud network security, with over 55% of organizations leveraging its scalable and cost-effective infrastructure. As more companies shift to SaaS and cloud-native applications, the need for advanced security frameworks to handle multi-tenancy and external threats has intensified.

Private Cloud

With approximately 25% market share, the Private Cloud segment remains a trusted option for industries with strict compliance needs. Its appeal lies in greater control, data isolation, and customizable security. Sectors like healthcare and finance are driving a steady 10% annual growth in private cloud adoption.

Hybrid Cloud

The Hybrid Cloud segment is quickly emerging as a strategic deployment model, now comprising nearly 20% of the market. It balances the flexibility of public cloud with the governance of private infrastructure. A projected CAGR of 17% underscores its increasing relevance for enterprises aiming for secure, scalable transformation.

Cloud Network Security Market, Segmentation by Organization Size

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

Small & Medium Enterprises

The Small & Medium Enterprises (SMEs) segment is witnessing rapid adoption of cloud network security, as over 60% of these businesses turn to managed services to overcome internal skill shortages. With digital transformation becoming a priority, SMEs are adopting scalable and cost-effective security solutions, fueling a CAGR above 18%.

Large Enterprises

Large Enterprises lead in cloud network security deployment, accounting for more than 65% of total market revenue. Their need for advanced, scalable protection across diverse operations drives demand for integrated, multi-layered solutions. Around 70% of large businesses already implement robust cloud security frameworks tailored to their scale and complexity.

Cloud Network Security Market, Segmentation by Industry Vertical

The Cloud Network Security Market has been segmented by Industry Vertical into BFSI, IT & Telecommunications, Healthcare, Retail, Government, Manufacturing, and Others.

BFSI

The BFSI (Banking, Financial Services, and Insurance) sector is a major user of cloud network security, with over 70% of institutions deploying advanced protection solutions. Rising digital transactions and regulatory pressures drive demand for encryption, threat detection, and compliance-focused architectures.

IT & Telecommunications

The IT & Telecommunications industry leads in securing high-volume data environments, with more than 75% of companies integrating cloud network security. As 5G and edge computing evolve, secure, low-latency environments are critical for uninterrupted service and data flow.

Healthcare

In healthcare, cloud network security is essential to protect sensitive medical records, with adoption reaching around 65%. Increased telehealth use and compliance with regulations like HIPAA are accelerating demand for privacy-first, resilient cloud infrastructures.

Retail

The Retail vertical relies on cloud security to safeguard customer and payment data, with adoption rates surpassing 68%. E-commerce expansion and personalized services have prompted rapid deployment of fraud detection, access controls, and intrusion prevention systems.

Government

The Government sector is embracing secure cloud platforms, with over 60% of agencies now leveraging cloud network security. Public sector digitalization, data protection laws, and national cybersecurity frameworks are key investment motivators.

Manufacturing

Manufacturing enterprises are integrating cloud security to secure connected production environments, with more than 55% adoption. The focus lies on securing operational technologies (OT), IoT networks, and minimizing disruptions caused by cyberattacks.

Others

Other industries, such as education, logistics, and energy, are increasingly adopting cloud network security — now at over 50%. These sectors prioritize real-time monitoring, compliance, and risk mitigation across diverse use cases.

Cloud Network Security Market, Segmentation by Geography

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

Cloud Network Security Market Share (%), by Geographical Region

North America

North America leads the global cloud network security market with over 35% of total revenue. The region’s advanced cloud infrastructure, high cybersecurity awareness, and compliance-driven industries such as BFSI and healthcare contribute to its dominance. Ongoing threats and regulations continue to boost security investments.

Europe

With around 25% of market share, Europe is a stronghold for cloud network security adoption. Data privacy laws like GDPR and a rising number of digital enterprises are pushing demand for reliable, scalable security platforms, especially in Western Europe.

Asia Pacific

Asia Pacific is witnessing the fastest growth in cloud network security, with a CAGR over 20%. Countries like China, India, and Japan are rapidly deploying cloud systems, leading to increased demand for secure, agile frameworks to protect against evolving cyber threats.

Middle East and Africa

The Middle East and Africa region is emerging as a key market, contributing approximately 8% of global revenue. Smart government programs, digitization of services, and critical infrastructure modernization are fueling the adoption of cloud-based security models.

Latin America

In Latin America, cloud network security is growing steadily with nearly 7% market share. Brazil and Mexico are at the forefront, investing in cloud solutions to improve digital resilience and support expanding e-commerce and enterprise ecosystems.