Cloud Network Security Market
By Offering;
Solution and ServicesBy Deployment Mode;
Public Cloud, Private Cloud, and Hybrid CloudBy Organization Size;
Small & Medium Enterprises and Large EnterprisesBy Industry Vertical;
BFSI, IT & Telecommunications, Healthcare, Retail, Government, Manufacturing, and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Cloud Network Security Market Overview
Cloud Network Security Market (USD Million)
Cloud Network Security Market was valued at USD 38,928.82 million in the year 2024. The size of this market is expected to increase to USD 97,410.36 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 14.0%.
Cloud Network Security Market
*Market size in USD million
CAGR 14.0 %
Study Period | 2025 - 2031 |
---|---|
Base Year | 2024 |
CAGR (%) | 14.0 % |
Market Size (2024) | USD 38,928.82 Million |
Market Size (2031) | USD 97,410.36 Million |
Market Concentration | Low |
Report Pages | 325 |
Major Players
- IBM
- Broadcom
- Check Point
- AWS
- Zscaler
- Akamai Technologies
- Forcepoint
- Fortinet
- F5
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Cloud Network Security Market
Fragmented - Highly competitive market without dominant players
The Cloud Network Security Market continues to expand as organizations transition to digital-first infrastructures. With over 65% of businesses now operating in hybrid or multi-cloud environments, securing network activity has become a key operational priority. Enterprises are turning to specialized cloud network security tools to guard against evolving threats and ensure visibility across complex digital ecosystems.
AI-Powered Innovations Driving Security Transformation
Nearly 55% of organizations are now adopting AI-enabled monitoring systems to manage cloud network vulnerabilities. These technologies are streamlining how companies detect threats, perform automated incident response, and maintain operational integrity. The incorporation of machine learning models is strengthening threat intelligence and reinforcing defenses across distributed networks.
Surging Adoption of Zero Trust and SASE Models
Enterprises are investing in Zero Trust architectures and SASE frameworks, which together form a modern approach to secure cloud access. Currently, more than 60% of businesses are deploying identity-centric access controls that reduce internal exposure and enforce authentication protocols. These integrated solutions offer consistent protection, even in highly dynamic and remote-access scenarios.
Strong Momentum from Digital Cloud Strategies
Ongoing cloud adoption trends are shaping a dynamic outlook for the cloud network security landscape. With over 50% of current cybersecurity budgets focused on cloud, the demand for scalable and agile protection models continues to rise. Businesses are increasingly aligning their investments with cloud-native protection frameworks to ensure uninterrupted and resilient operations.
Cloud Network Security Market Recent Developments
- 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.
Cloud Network Security Segment Analysis
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.
Regions and Countries Analyzed in this Report
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.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Cloud Network Security Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces—Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
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Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunities Analysis
Drivers:
- Surge in multi-cloud deployment
- Rising remote workforce and BYOD trends
- Increase in cloud-native cyber threats
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Regulatory and compliance mandates expansion - The rapid evolution of privacy statutes and industry guidelines has made regulatory and compliance mandates a primary catalyst for investment in cloud network security. Frameworks such as GDPR, CCPA, PCI DSS 4.0, and the updated HIPAA rule set require continuous traffic inspection, log retention, and encryption for all data in motion. Cloud security platforms that offer built-in reporting and policy templates help enterprises satisfy these obligations without building custom tooling from scratch.
Government procurement standards—FedRAMP High in the United States, ENS in Spain, and IRAP in Australia—now demand explicit proof of network-level threat detection. Vendors able to map controls directly to these frameworks gain preferred-supplier status, accelerating adoption in highly regulated sectors including government, finance, and healthcare.
Boardrooms increasingly view non-compliance fines as existential risks. Automated compliance engines that audit configuration drift, validate segmentation rules, and generate real-time evidence become indispensable. Security teams can demonstrate adherence through audit-ready dashboards, shortening external assessments and freeing resources for proactive defense.
Regulations are also pushing organizations toward zero-trust architectures. This model depends on granular visibility, identity-aware micro-segmentation, and continuous verification—capabilities embedded in next-generation cloud firewalls and secure access service edge solutions. As legislators expand breach-notification windows and tighten data residency clauses, the demand for regulation-aligned cloud network security will continue its upward trajectory.
Restraints:
- Complex monitoring across hybrid infrastructures
- Skill shortage in cloud security teams
- Performance impact of deep packet inspection
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Budget constraints for small enterprises - Advanced cloud network security platforms carry subscription fees for threat intelligence, sandboxing, and 24 × 7 support that can strain the finances of small and mid-sized enterprises. Many SMBs still rely on bundled security features from cloud providers, perceiving full-featured solutions as cost-prohibitive luxuries rather than necessities.
Budget limitations often force trade-offs between depth of inspection and latency. When every extra millisecond affects user experience, affordable tiers that lack SSL decryption or AI-driven analytics appear attractive, even though they leave coverage gaps against sophisticated threats.
Total cost of ownership extends beyond licensing. Skilled personnel are required to fine-tune policies, triage alerts, and maintain compliance documentation. Hiring or training certified security engineers pushes operational expenses higher, making comprehensive protection difficult for lean IT teams.
Vendors have introduced usage-based pricing and multi-tenant consoles, but hidden expenses—API call surcharges, premium threat feeds, or compliance add-ons—can still exceed initial quotes. Until the market offers transparent, truly elastic cost structures with predictable, SMB-friendly pricing, budget pressures will curb widespread deployment.
Opportunities:
- Adoption of DevSecOps and automation
- Integration with secure access service edge
- Growth in AI-based threat analytics
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Managed security services expanding globally - The shortfall in in-house expertise and the 24 × 7 nature of cyber risk are fueling global demand for managed security services focused on cloud networks. Managed detection and response (MDR) and SOC-as-a-service providers bundle expertise, technology, and continuous monitoring into monthly subscriptions, lowering barriers for organizations lacking dedicated security teams.
Providers leverage shared telemetry from diverse customers to train machine-learning models, improving threat-hunting accuracy and reducing dwell time for new attack vectors. This community effect delivers protection levels individual enterprises would struggle to replicate cost-effectively.
Regional compliance requirements create niches for local MSSPs that understand language, regulations, and threat landscapes. By offering data-sovereign log storage and in-country incident response, they satisfy clients wary of cross-border data transfers while still delivering cloud-native defenses.
Strategic alliances between hyperscale cloud providers and telecom operators are extending managed protection to edge locations and 5G slices. Bundling secure connectivity with cloud firewalling positions MSSPs to capture SMEs seeking one-stop solutions, accelerating global market penetration. As ransomware gangs target cloud workloads and insurers raise premiums, outsourced expertise becomes a business imperative. Vendors that provide robust SLAs, automated containment, and compliance reporting will capitalize on the momentum toward globally expanding managed cloud security services.
Competitive Landscape Analysis
Key players in Cloud Network Security Market include:
- IBM (US)
- Broadcom (US)
- Check Point (Israel and US)
- Google (US)
- AWS (US)
- Zscaler (US)
- Akamai Technologies (US)
- Forcepoint (US)
- Fortinet (US)
- F5 (US)
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Market share Analysis
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Offering
- Market Snapshot, By Deployment Mode
- Market Snapshot, By Organization Size
- Market Snapshot, By Industry Vertical
- Market Snapshot, By Region
- Cloud Network Security Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Surge in multi-cloud deployment
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Rising remote workforce and BYOD trends
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Increase in cloud-native cyber threats
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Regulatory and compliance mandates expansion
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- Restraints
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Complex monitoring across hybrid infrastructures
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Skill shortage in cloud security teams
-
Performance impact of deep packet inspection
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Budget constraints for small enterprises
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- Opportunities
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Adoption of DevSecOps and automation
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Integration with secure access service edge
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Growth in AI-based threat analytics
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Managed security services expanding globally
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Cloud Network Security Market, By Offering, 2021 - 2031 (USD Million)
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Solution
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Services
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- Cloud Network Security Market, By Deployment Mode, 2021 - 2031 (USD Million)
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Public Cloud
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Private Cloud
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Hybrid Cloud
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Cloud Network Security Market, By Organization Size, 2021 - 2031 (USD Million)
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Small & Medium Enterprises
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Large Enterprises
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Cloud Network Security Market, By Industry Vertical, 2021 - 2031 (USD Million)
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BFSI
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IT & Telecommunications
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Healthcare
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Retail
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Government
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Manufacturing
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Others
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- Cloud Network Security Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Cloud Network Security Market, By Offering, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- IBM (US)
- Broadcom (US)
- Check Point (Israel and US)
- Google (US)
- AWS (US)
- Zscaler (US)
- Akamai Technologies (US)
- Forcepoint (US)
- Fortinet (US)
- F5 (US)
- Company Profiles
- Analyst Views
- Future Outlook of the Market