The global cloud security software market is expected to reach $963.4 million in 2014, growing at a CAGR of 41.4% from $241 million in 2010, according to a global cloud security software market report from research company TechNavio.
Indeed, the cloud security software market is growing at a higher rate than the broader IT security software market and is expected to account for 4% of the latter market by 2014, up from 2% in 2010.
"The main drivers for the global cloud security software market are the growing use of cloud services for critical data storage and the sudden increase in cloud-specific attacks," the report stated. "Driven by multiple factors such as flexibility, cost saving, and availability, an increasing number of companies are transferring their data to the cloud."
TechNavio's analysis identifies Trend Micro as a major player in the global cloud security software market with a market share in the range of 13% to 17%, followed by McAfee with a market share of 8% to 10% and CA Technologies with 6% to 9%.
Apart from diversified geographic reach, established customer base and brand reputation, Trend Micro's partnership with cloud and virtualization service provider, VMware, helped it gain market share. The company also partners companies such as HP, Cisco, Dell, Microsoft, Oracle, and Wipro.
In the virtualization and cloud space, Trend Micro provides data protection for public and private clouds and VMware vSphere virtual environments, and system and application security across physical, virtual, and cloud environments.
TechNavio defines cloud security software as software that provides security to cloud-based services or cloud computing architectures. Cloud security software can be a standalone solution or a suite of products. It focuses on the security of key parameters such as compliance, governance, data protection, architecture, and identity and access.
A typical cloud security solution offers features such as encryption, identity and access management (IAM), endpoint monitoring, vulnerability scanning, intrusion detection, and application and messaging security.
The identity management and encryption segments dominate the cloud security software market, at around 40%. "The growing access to secure networks through the cloud and the growing criticality of data in the cloud will allow these segments to remain the major growth drivers of this market," TechNavio analysts said.