Messaging Security Market Size, Share & Trends Analysis Report By Component (Solution, Service), By Deployment (Cloud, On-premise), By Type (Email, Instant SMS), By End-User (BFSI, Government, Media and Entertainment, Retail and E-commerce, Manufacturing, Healthcare, Education, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global messaging security market size had a value of USD 5,986.09 million in 2022 and is expected to reach USD 6,786.67 million in 2023. It is anticipated to develop at a CAGR of 16.7% and reach the valuation of USD 24,031.14 million during the forecast period of 2031.

Messaging security is software used to protect a company’s messaging infrastructure. Messaging security protects confidential data from malware, and it also saves the users from spam by allowing blocklists. The cyber environment and related technologies have evolved quite dramatically over the past few years, but it has also created the way for new threats.

Based on a study by Cisco Systems, it was found that the proliferation of Bring Your Own Device in an organization having around 10,000 employees can be considered a 29% high cybersecurity risk. Moreover, company units face high-security threats as business communications increasingly shift towards mobile consumer messaging applications. Such factors bring in the need for messaging security in the market. 

Additional factors like the need to reduce onsite data center footprints and cost savings, increasing incidences of spam, viruses, inappropriate content through email, and flexible deployment options, are creating hikes in the messaging security market.

Market Dynamics

Drivers:

1) Growing Popularity of Cloud-Based and Virtual Appliance-Based Solutions

Industries across the globe are facing a rapidly changing threat landscape. It can be witnessed that the volume and sophistication of attacks are excessively increasing. The malicious intent behind such attacks and their stealth and speed result in a significant cost bearing for the organizations and companies. Without a consistent and robust shield at the messaging gateway to block spam, viruses, and other malicious attacks, organizations are vulnerable to data loss, compliance, and data risks. It also reduces employee productivity. Hence, virtual-appliance-based solutions are gaining popularity worldwide due to such factors.

Cloud-based email security solutions are also preferable as they secure email platforms to prevent phishing scams. Phishing scams trick the users into divulging privileged information. The media hosted by cloud email security vendors also ensure that emails containing links to malicious sites or trigger malware downloads are blocked before reaching the end-user. Organizations use cloud email security solutions to obviate data loss and release essential credentials. 

These solutions also increase end-point security by blocking malware and other web-based threats.

2) Increased Demand for Protecting Confidential Information from Malware

Cybersecurity incidents are on the rise across the globe owing to the growing propensity towards digitalization and adoption of connected solutions as part of their operations. 

In 2020 IBM released a statement claiming that Brazil had a 29% increase in data breaches, which was the highest across the world. Threats of such pushes companies and organizations to deploy messaging security solutions. 

In 2020 The Indian government revealed 22,321,459 malicious email attacks targeting the members of the Parliament. This is a severe issue faced by every nation. 

Therefore, due to such rising incidents of malware threats across the globe, the need to protect confidential data has become obligatory for most organizations. Hence, driving the market for messaging security.

One of the main factors propelling the market's expansion is the world's rapid urbanization and the rising frequency of cyberattacks. Additionally, the increased use of cloud-based and virtual appliance-based solutions is accelerating market expansion. To manage sensitive user data, organizations use multi-cloud environments and Software-as-a-Service (SaaS)-based platforms. As a result, email and messaging security services are being used more frequently for internal company communication and collaboration with outside parties. The multi-layered protection that messaging security provides against email phishing, business email compromise scams, and ransomware attacks is another factor in the market's expansion. The expanding need for security solutions from instant messaging service providers is also creating a good market picture. The market is expected to be further fueled by additional factors, such as the rising use of mobile devices and the creation of cutting-edge technologies for secure messaging solutions.

Restraints:

1)The Complexity of Implementing Messaging Security Solution

Messaging security solutions are pretty complicated as they involve various processes and technicalities.

Such an instance was witnessed with Multi-Factor Authentication or MFA. The increased management complexity for administrators and end-users is a significant restraint for the system. MFA is not a user-friendly tool as it requires additional steps as far as end-users are concerned. The users who are not tech-savvy state it to be a problematic and confusing tool to use. There are also various other common issues encountered while using MFA. Some of the MFA types make the users have specific hardware, which can add significant administrative overheads. Users might become locked out of their accounts if they lose or cannot use their other factors. Owing to such factors, it pushes back the market growth of messaging security solutions.

With the growing complexity of attacks, relying solely on basic security features and employee training is no longer adequate. Therefore developers make network security undergo various process changes to withstand the attacks. This makes the overall messaging security solution challenging to operate. Thus, creating a restrain for the market.

2) Scarcity of Knowledge About Cyberattacks

A preeminent weakness in the preventive measures is the lack of awareness and knowledge among the users regarding cyber-security.

The lack of awareness about malicious cyberattacks and data breaches is one of the leading reasons organizations worldwide fall victim to such attacks.

For organizations to achieve a significant level of mitigation, it is essential to have in-house awareness and training programs. These programs create a basic level of understanding. This should be an immediate action of businesses if they want to survive the malicious attacks.

Multiple companies worldwide are taking the necessary steps to converse this awareness problem. Global companies have started to increase their investments in cybersecurity training for employees.

Growth Opportunity in Global Messaging Security Market

Cyber-attacks, ransomware, and DDoS attacks are expected to increment further during the upcoming years and targeting against large organizations in regions whose adoption rate is not as quick for cybersecurity solutions. Moreover, ransomware-as-a-service offerings and their construction kits have been evaluated to push this increase, especially as an easy tool for novice or low-skilled criminals.

Global companies like Avanan Cloud Email Security have deployed a one-click platform through API to prevent Business Email Compromise and block phishing, malware, data leakage, account takeover, and shadow IT. Such a platform makes it feasible to replace the need for multiple tools to secure the entire cloud collaboration suite.

The oil and gas industry is also estimated to continue as an attractive target for cyber threats, given the number of entry points along the value chain. A cyber incident can damage and disrupt the security and economy of a given oil-producing country. And one of the effective ways of dealing with such attacks and threats is to use AI and machine learning such as Gatefy. Gatefy uses machine learning to process the data and information, which helps the AI develop and learn. Presently businesses need multi-layered solutions to be fully protected from malicious threats, and AI has the potential to increase cybersecurity by boosting traditional cybersecurity networks.

Regional Analysis

The global messaging security market is bifurcated into North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa based on the region.

North America is expected to have a market share of USD 14485 million at a CAGR of 24%.

The North American region is a primary hub for all the major organizations across the globe. The area is among the leading innovators and pioneers in technological adoption. The part is home to some prominent messaging security solution vendors, thereby contributing to the market's growth.

The growth of the various end-user industries and IoT are driving the demand for intelligent devices and cyber security in the region. The risks of malicious attacks impacting the market may vary from corporates to governments. Hence, securing the data has become a priority, pushing the growth of messaging security.

Moreover, industry participants have chosen various expansion methods to gain more customers, including adding new product lines to their providing portfolios and addressing security holes. For instance, in November 2020, the American multinational cybersecurity software company Trend Micro corrected a number of holes in its InterScan Messaging Security product, including ones that could have a significant adverse effect.

Europe is expected to have a share of USD 12,397 million at a CAGR of 24% by 2031.

Europe is the homeland of most prominent tech hubs globally and a significant driver and adopter of modern technologies. An increase in BYOD and smartphone adoption has been witnessed among various enterprises in the region, along with employee usage of consumer-grade messaging apps. These factors lack the physical and technical safeguards essential for enterprise communication, thus exposing companies to security risks. 

Over the next eight years, Asia-Pacific's regional messaging security market is anticipated to develop at the fastest rate. This is due to developing nations like Australia, China, and India, which want to increase their spending on security infrastructure.

Segmental Analysis

Based on deployment, the market is segmented as cloud and on-premise.

Cloud deployment is expected to have the largest share in the market, generating a revenue of USD 28,805.67 million at a CAGR of 29.2% by 2031.

The incrementing awareness among companies about the advantage of saving money and resources by moving their data to the cloud rather than building and maintaining new data storage is attributed to the demand for cloud-based solutions. Hence driving the adoption of on-demand security services. With the increased number of users using cloud-based email, they witnessed the benefit of predictable costs. Therefore due to such benefits being provided, both large enterprises and SMEs promptly shift towards cloud-based solutions. The increased adoption of cloud-based email security services is also pushing the companies towards services integrated with other security platforms, such as IPS and NGFW.

On-premise deployment is expected to have a revenue share of USD 6996 million at a CAGR of 17% by 2031. 

The on-premise security solution helps the business with enhanced control over data. These solutions offer eminently better threat protection when compared to cloud deployments. It is necessary to have expert and trained staff available and sufficient resources for deploying on-premise solutions. Although cloud solutions are commonly adopted, they still face the challenge of security concerns, thus allowing on-premise solutions to play a significant role in the market.

Based on type, the market is segmented as Email and SMS.

Email is expected to generate a revenue of USD 25,458 million at a CAGR of 26% during the forecast period. 

Email attacks are frequently rising nowadays. Email is a critical business aspect deeply embedded in the roots of business processes. Attacks of all kinds, such as phishing, impersonation, and insider threats, are rising, creating difficulty for the developers. Hence the need to provide a shield drives the demand for messaging security market in this segment.

The instant SMS segment is expected to be valued at USD 10,786 million during the forecast period at a CAGR of 22%.

Smishing text messages are scam messages designed to enable cybercriminals to steal money or identities by infecting the devices. There was witnessed a 600% increase in mobile SMS phishing attacks during 2020 as per the Security Boulevard. Such instances are likely to drive the market over the forecast period.

The market is segmented based on end-users as BFSI, Government, Healthcare, Media and Entertainment, Retail and E-commerce, Manufacturing, Education and others.

BFSI is expected to generate USD 8465 million at a CAGR of 23% by 2031.

The financial sector collects a massive volume of data from its customers. Banks and financial organizations increasingly employ services to store and analyze complex data to use the data collected through different data points and enhance customer satisfaction. With greater customer expectations, the growing technological requirement, and regulatory norms, banking institutions are propelled to shift towards a proactive approach to security hence incorporating cloud-based security platforms. 

The government sector is expected to generate USD 7588.09 million at a CAGR of 26.1% during the forecast period. 

With many cyberattacks on public sector organizations and ongoing fiscal pressures, the government’s critical IT security vulnerabilities increase the risk of compromised internal and external data. These data are susceptible and can be exploited by criminal organizations. Thus, pushing the adoption of the cyber security strategy to the end-point.

Impact of covid-19

As per the WHO, the number of reported COVID-19 cases jumped from 87,137 on March 01, 2020, to 102,083,344 as of February 01, 2021, with approximately 2,209,195 deaths globally. The rapid rise in the number of confirmed COVID-19 cases globally resulted in the governments of various countries resorting to stringent containment measures to slow down the spread of the pandemic. However, complete lockdowns across countries also resulted in a short-term decline in the GDPs of their respective economies.

The COVID-19 pandemic had e a dual effect on the electronics industry, wherein the manufacturing of electronics components was halted due to lockdowns imposed in various countries, coupled with slower logistical processes and supply interruptions. Furthermore, the unavailability of labor globally has also contributed negatively to the manufacturing of electronic components.

The discontinuation in the delivery of electronics products by e-commerce companies during the lockdown, as they were considered non-essentials, negatively impacted the electronics industry. However, increased demand for laptops, computers, and mobile phones due to work-from-home situations positively affected the electronics industry.

The Chinese economy was hit tremendously as it was the epicenter of the COVID-19 pandemic, disrupting the supply chain for major electronic brands. As China is the major exporter and manufacturer of raw materials required to produce electronic products, this has led to the halting of the ongoing production of electronics in the U.S. and Europe, thereby creating a demand-supply gap.

Recent Developments

• In November 2022, McAfee and Mastercard Announce Partnership to Provide Online Protection Software to US Cardholders.
• In October 2022, To help users secure their data, McAfee released McAfee+, a new product line with privacy and identity protections.
• In December 2022, The largest cloud-native converged core gateway in the world will be unveiled by T-Mobile and Cisco.
• In December 2022, Security Teams Must Get Ready for the Next Ransomware Era, Says Trend Micro.
• In November 2022, Trustwave Uses Gamification Techniques in Australia to Train the Next Generation of Cybersecurity Experts.