Cloud Access Security Broker Market

Market Overview

The global cloud access security broker market size was valued at USD 6.45 billion in 2022. It is estimated to reach USD 24.75 billion by 2031, growing at a CAGR of 16.12% during the forecast period (2023–2031). The requirement for effective security solutions becomes increasingly apparent as businesses progressively transition their data and applications to cloud-based platforms, thereby driving global market growth. Moreover, the proliferation of Bring Your Own Device (BYOD) and Shadow IT contributes to an elevated susceptibility to security vulnerabilities, propelling the market.

The term "cloud access security broker" (CASB) was initially introduced by Gartner in 2012. It refers to a security mechanism positioned between cloud service providers and cloud service consumers, enabling the enforcement of enterprise security policies while accessing cloud-based resources. Cloud Access Security Brokers (CASBs) provide a unifying platform for consolidating security policy enforcement mechanisms. Various security policies can be implemented to enhance the security of a system. These policies encompass a range of measures such as authentication, single sign-on, authorization, credential mapping, device profiling, encryption, tokenization, logging, alerting, and malware detection/prevention, among others.

Market Dynamics

Global Cloud Access Security Broker Market Drivers

Increased Adoption of Cloud-Based Solutions

Cloud-based solution is one of the most rapidly expanding technologies, and its expansion has accelerated significantly in 2020. Cloud systems better simplify communication between organizations, providing a streamlined solution for managing business operations, thereby enhancing its adoption globally. As per Check Point Software Technologies, A significant proportion of worldwide enterprises, up to 98%, employ cloud-based services, with around 76% of these organizations adopting multi-cloud systems that incorporate services from two or more cloud providers.

Furthermore, the adoption of cloud-based solutions is also surging in developing nations. For instance, recent research from Oracle indicates that cloud computing is expanding and accelerating throughout Central and Eastern Europe (CEE) and Sub-Saharan Africa (SSA). At present, 30% of respondents use the cloud. 41% of organizations with 1,000 to 2,500 employees and 50% with over 2,500 employees are planning or evaluating cloud strategies. Consequently, the high adoption of cloud-based solutions drives the global cloud access security broker market.

Growing Shadow IT and BYOD Trends

Employees engage in the utilization of unauthorized cloud applications and services without the knowledge of the IT department. Recent research by CORE indicates that since organizations broadly adopted the remote work model, shadow IT usage has increased by 59%, with 54% of IT teams characterizing their organizations as "significantly more at risk of a data breach" as a result. Cloud Access Security Brokers (CASBs) assist enterprises in identifying and managing the utilization of shadow IT by offering enhanced insight into cloud services and implementing robust security standards.

Furthermore, a Bitglass survey indicates that because of the COVID-19 pandemic, about 85% of businesses allow employees and partners to use BYOD environments. As the number of personal devices in the workplace increases, ensuring the security of sensitive corporate data when accessed from multiple devices becomes increasingly important. CASBs provide encryption, access restrictions, and data loss prevention (DLP) features to safeguard data on devices in bring-your-own-device (BYOD) environments. This solution aids enterprises in upholding data security and ensuring adherence to regulatory requirements. Thus, the growing trend of shadow IT and BYOD drives the market expansion.

Global Cloud Access Security Broker Market Restraint

Complexity and Integration Challenges

Implementing CASB solutions can provide challenges due to the intricate process of integrating with many pre-existing systems, apps, and cloud services. Similarly, cloud environments frequently consist of a combination of services sourced from many providers, such as AWS, Azure, and Google Cloud. Each service may own a distinct collection of application programming interfaces (APIs) and security measures.

The successful integration of a Cloud Access Security Broker (CASB) with diverse cloud services necessitates a thorough comprehension of each provider's security model and comprehensive Application Programming Interface (API) support availability. This complexity may provide a significant obstacle for firms, particularly those with outdated IT infrastructure, thereby restricting market expansion.

Global Cloud Access Security Broker Market Opportunities

Rising Data Breaches and Cyber Attacks 

The escalating occurrences of data breaches across several sectors have exposed numerous customer data records to unauthorized individuals and substantial financial losses for affected firms. For instance, the Cam4 data breach in March 2020 exposed more than 10 billion data records, and the Yahoo data breach in 2013 reportedly exposed about 3 billion data records.

Moreover, according to data from cybersecurity solutions provider Check Point Software Technologies, the number of attacks per organization against cloud-based networks increased by 48% between 2021 and 2022. Furthermore, according to Statista, globally, the mean expense associated with a single data exposure in all sectors was approximately 4.35 million U.S. dollars as of 2022. Thus, there has been a heightened emphasis on developing and implementing security measures, creating market expansion opportunities.

Regional Analysis

North America Dominates the Global Market

Based on region, the global cloud access security broker market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global cloud access security broker market shareholder and is expected to expand substantially during the forecast period. The North American business sector prioritizes digital transformation and is frequently known as an early adopter of technologies, which is expected to be the primary drive of the CABS market. In addition, North America is currently experiencing a surge in the incidence of data beaches. For instance, the Identity Theft Resource Center (ITRC) reports that there has been a slight increase in the average number of breaches in the US over the previous few years. The United States experienced a rise in the frequency of data breaches, from 1,506 breaches in 2017 to 1,826 breaches in 2021. These increasing activities of data breaches in various industries are expected to be the primary factor driving the demand for cloud access security broker solutions during the forecast period.

Furthermore, the rise in cybersecurity events resulted in cybersecurity policy proposals in the United States. President Biden issued an Executive Order on "Improving the Nation's Cybersecurity," mentioned as (EO 14028). The EO called for new recommendations on improving software supply chain security and other essential cybersecurity activities, which have since been issued. The executive order mandated that federal government entities transition to a more robust and secure IT infrastructure based on the zero-trust model. Such government initiatives are expected to create opportunities for the market's growth.

Europe is forecasted to have a significant market growth rate during the forecast period. The increasing adoption of cloud solutions in industries like BFSI, IT and Telecom, manufacturing, retail and consumer goods, and media and entertainment are projected to boost the market growth. In the European region, cyber-attacks have increased due to the rapid move into working from home, giving companies little time to prepare for such a situation and upgrade their IT infrastructure. According to Databasix, UK firms saw around 2.39 million instances of cybercrimes in 2022. A total of £4.56 million has been expended due to an 8.1% increase in the average data breach cost in the United Kingdom.

In addition, deploying data protection and privacy regulations guidelines by the regulatory authorities in this region drives the CASB market. For instance, the European Union implemented the General Data Protection Regulations (GDPR) that fixed guidelines and responsibilities of institutions (doing business with European citizens) to keep consumer data safe. All these factors together contribute to the regional market expansion.

Asia-Pacific is anticipated to grow exponentially. According to EY-FICCI reports published in August 2023, 49% of organizations modernize their data infrastructures using the cloud in India, with larger organizations taking the lead at 55%. Moreover, forty percent of firms are using the cloud to improve worker productivity and cooperation, while 78% of companies are implementing cloud modernization initiatives. Therefore, the increasing cloud deployment is expected to boost the cloud access security broker market.

In addition, the growth in data security breaches has also surged in the region. For instance, the security breach of India's national ID database, Aadhaar, in March 2018 violated more than 1.1 billion records. The biometric information encompassed identity numbers and fingerprint scans, which had the potential to facilitate the access of bank accounts and the receipt of financial help, in addition to other government services. These factors are anticipated to expedite the market's development.

Segmental Analysis

The global cloud access security broker market is bifurcated into solution, service, enterprise size, and end-user.

Based on the solution, the global cloud access security broker market is segmented into control and monitoring cloud services, data security, risk and compliance management, threat protection, and others. 

The data security segment is the highest contributor to the market. Cloud Access Security Brokers (CASBs) are crucial to enhancing data security within cloud systems. CASBs offer valuable insights into cloud services, thereby assisting organizations in comprehending the precise location of their data, identifying the individuals accessing it, and understanding how it is being utilized. CASBs possess discovery tools that are capable of identifying sensitive data that is kept in the cloud. This enables companies to classify and implement protective measures for their data security appropriately.

Based on service, the global cloud access security broker market is divided into infrastructure as a service, platform as a service, and software as a service. 

The software as a service segment is the largest contributor to the market. Software as a Service (SaaS) allows users to access and utilize cloud-based applications remotely via the Internet. Email, calendaring, and office applications (e.g., Microsoft Office 365) are typical examples. Businesses can purchase a comprehensive software solution from cloud service providers via SaaS on a pay-as-you-go basis. Organizations lease the use of an application, and its users access it via the web, typically through a web browser. The entire underlying infrastructure, middleware, application software, and application data are housed within the service provider's data center. With the proper service agreement, the service provider manages the hardware and software and guarantees the app's and your data's accessibility and security.

Based on enterprise size, the global cloud access security broker market is divided into large enterprises and small and medium enterprises (SMEs). 

The large enterprises segment is the largest contributor to the market. Large enterprises are classified as organizations with notable attributes such as substantial revenue, assets, personnel, and extensive scale and global reach. A large enterprise is defined as one that satisfies at least one of two criteria, i.e., it must have a minimum of 5,000 employees, generate an annual revenue exceeding 1.5 billion euros, and have a balance sheet totaling more than 2 billion euros. These corporations generally maintain a significant foothold in the market and conduct business at the domestic or global level. In addition, there are numerous sectors in which large organizations can be located, such as finance, manufacturing, healthcare, and technology. Major corporations, such as Apple, Microsoft, ExxonMobil, Toyota, and various others, constitute examples of large enterprises.

Based on end-user, the global cloud access security broker market is bifurcated into BFSI, government, healthcare, IT and telecommunication, manufacturing, retail and consumer goods, education, and others. 

The IT and telecommunication segment dominates the global market. Cloud Access Security Brokers (CASBs) play a vital role in enhancing the security of IT and telecommunication environments. They achieve this by offering essential capabilities such as data and application visibility, control, and protection within cloud infrastructures. They address the distinct obstacles presented by implementing cloud computing and guarantee that establishments can capitalize on the advantages of the cloud while upholding a robust security stance. CASBs also offer comprehensive records of user activity within cloud settings, facilitating IT administrators' oversight and examination of access and usage patterns. The ability to recognize unusual or suspicious actions enables the timely identification of potential security risks.

Recent Developments

• June 2022- Proofpoint announced the integration of its cloud access security broker (CASB) solution with Okta. This strategic move will provide Proofpoint's customers with enhanced capabilities to identify and address potentially malicious login activities across over 7,000 cloud applications federated through the Okta Identity Cloud.
• September 2023- Netskope, an industry leader in Secure Access Service Edge (SASE), was designated by the Canadian Federal Government as its preferred cloud access security broker (CASB) vendor via Shared Services Canada's (SSC) cybersecurity procurement vehicle (CSPV).