Rapid enterprise adoption of cloud computing, mobile, and IoT is transforming how enterprises invest in enterprise security. According to a report issued earlier this year, the information security market will reach a staggering $170 billion in five years, from its current $100 billion.
Research firm Market and Markets expects the global cloud security market alone will grow from $4.2 billion in 2014 to nearly $9 billion by 2019. According to that firm, market acceleration in cloud, plus increasing attacks, are among the primary drivers of security sales. These estimates align with a recent study from Transparency Market Research (TMR) which also projected that the global cloud security market would grow to $11.8 billion by 2022, from about $4.5 billion in 2014.
The cloud security market has been underway for a number of years, but it hit escape velocity last year. “Across a range of cloud market segments, 2015 growth rates averaged 28 percent and annual revenues passed the $110 billion milestone," John Dinsdale, Synergy Research Group chief analyst, said to Datamation in the story the 110 billion cloud market growing 28 percent annually. Synergy Research based its findings on the year ending Sept. 30, 2015.
According to Synergy, the public- and infrastructure-as-a-service segments grew the most, and the combined public- and infrastructure-as-a-service grew an astounding 51 percent. The firm also found private and hybrid cloud services grew nearly as quickly, at 45 percent.
A big driver of the cloud spend is the demand mobile computing and constant access to apps and data places on enterprise systems.
Mobile devices are how more enterprise workers now access the cloud and communicate with coworkers through collaborative tools and social networks. According to Research and Markets, the total mobile security market is expected to grow from $1.5 billion in 2014 to just under $5.8 billion by 2019. That’s roughly 30.7% annual growth through 2019.
“The global mobile security market is in the developing stage with extensive growth. Enterprises are emphasizing more on enterprise mobility and mobile security solutions, which helps in protecting data while roaming,” the firm said. “As the increasing demand of devices such as smartphones, laptops, tablets, and personal digital assistants which are commonly used for both personal and business purposes showcase tremendous opportunity for the global market.”
The other big trend driving the information security market is the Internet of Things. BusinessInsider forecasts the number of Internet connected devices will grow from 10 billion in 2015 to 34 billion by 2020, and that nearly $6 trillion will be spent on IoT technologies during the next five years. And, according to the BusinessInsider report, enterprises will adopt IoT largely to cut operating costs, increase productivity, and provide a way to enterprise new markets and products.
A report from Zion Research, IoT Security Market for Utilities, Automotive, Healthcare and Other End-users: Global Industry Perspective, Comprehensive Analysis and Forecast, 2014 – 2020, says the global IoT security market hit $55.6 million in 2014 and should reach $464 million in 2020. Anything growing at more than 42% annually is going to change enterprise security.
The need to protect these devices, their traffic, and the data they generate is only going to grow. According to the Zion report, the global IoT security market is segmented into vertical markets such as utility, automotive, and healthcare. The utilities segment has dominated the global IoT security spend so far, comprising a 37.95% market share in 2014. Healthcare was the third-largest IoT security market.
According to a recent survey of IoT vulnerabilities that were identified and publicly reported within consumer connected-home and wearable technology products, between November 2015 and July 2016, the Online Trust Alliance found that the vulnerabilities, had the devices been properly built, could have been fully avoided.
"Security starts from product development through launch and beyond, but during our observations we found that an alarming number of IoT devices failed to anticipate the need of ongoing product support," said Craig Spiezle, executive director and president of the OTA. "Devices with inadequate security patching systems further opens the door to threats impacting the safety of consumers and businesses alike.”