Market Trends of Adaptive Security Industry
Cloud Deployment Model to Witness Major Growth
- The growing adoption of cloud services has necessitated the emergence of adaptive cloud security solutions, which dynamically adjust and respond to evolving threats and offer security.
- Cloud-based adaptive security solutions help seamlessly integrate with any cloud service providers, enabling organizations to leverage their existing cloud infrastructure while enhancing security capabilities and driving the adoption of cloud-based adaptive security solutions by organizations across industries.
- The increasing migration of workloads and data by businesses to the cloud for scalability and cost-effectiveness creates a growing need for security solutions designed to protect cloud environments. As traditional on-premises solutions are not suited to the dynamic and distributed nature of cloud infrastructure, the demand for cloud-based adaptive security solutions and services is increasing.
- For instance, according to a survey of 627 technical professionals across a cross-section of organizations globally by Flexera Software, as of 2023, 50% of enterprises already had workloads in the public cloud, with 7% planning to move additional workloads to the cloud in the next 12 months. In addition, 48% of the respondents reported having data stored on the public cloud.
- By end-user industry, the BFSI segment is expected to drive demand for cloud-based adaptive security solutions and services. As the BFSI industry is increasingly adopting cloud platforms, accessing industry-specific attributes related to security and compliance requirements is driving the need for adaptive security solutions to enable security. Thus, the need to match the complexities of operations and multi-faceted regulatory demands with the right cloud platform businesses in the industry is driving the need for adaptive security solutions and services in applications such as cloud security.
- The market vendors are introducing cloud-based adaptive security solutions and offering automated and tailored protection. For instance, in July 2023, Egress started offering a cloud email security platform to apply an adaptive security model. With the launch of this solution, the company would offer dynamic and automated protection against advanced inbound and outbound threats, transforming how organizations manage human risk via email.
- The demand for cloud-based adaptive security is growing due to the increasing adoption of cloud computing, the complexity of hybrid and multi-cloud environments, and the integration with cloud-native technologies. Implementing cloud technology across industries is anticipated to create demand for cloud-based adaptive security over the forecast period.
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North America to Hold Significant Market Share
- The rising need for various security solutions, including network, endpoint, application, and cloud security, drives adaptive security adoption in North America. The region's focus on improving cybersecurity to address changing cyber threats and the requirement for advanced security technologies to safeguard critical data and systems are key factors driving the adaptive security solutions market. Furthermore, factors such as the growing reliance on digital technologies, the surge in cyberattacks, and the necessity for regulatory compliance all contribute to the rising implementation of adaptive security in North America.
- The United States has invested significantly in cybersecurity research and development. For instance, in August 2023, the United States Department of Energy (DOE) opened USD 9 million in competitive federal funding for small and rural electric utilities to improve cybersecurity. This will allow smaller and rural utilities and cooperatives in the electric sector to apply for chunks of funding to build more cyber resilience in their infrastructure that could defend against cyberattacks, ransomware, and other digital threats.
- Moreover, cybercrime is rapidly gaining traction in Canada, and its impact is increasing. In August 2023, the Communications Security Establishment (CSE) released a report detailing 70,878 cyber fraud cases in Canada, resulting in over USD 390 million being stolen. Organizations in Canada are investing in cybersecurity solutions to guard against emerging threats due to the mounting frequency and sophistication of cyber threats, such as ransomware attacks and data breaches.
- In January 2024, Oleria, a company providing adaptive and autonomous identity security solutions, raised USD 33 million in a Series A funding round. This latest investment, which brings the company's total funding to more than USD 40 million, is led by Evolution Equity Partners with participation from Salesforce Ventures, Tapestry VC, and Zscaler. This funding round allows Oleria to ramp up hiring to enhance its overall product innovation, involving AI capabilities and its go-to-market strategy.
- Overall, increased public awareness of cybersecurity risks and the potential consequences of cyber threats has contributed to a greater emphasis on implementing effective cybersecurity measures. The combination of these factors underscores the critical importance of cybersecurity in North America, leading to a growing demand for advanced solutions and proactive cybersecurity strategies across industries, driving the market's growth opportunities significantly.
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