Cloud Security Software in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS OD6178Revenue
$17.2bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
30,110
Businesses
1,394
Wages
$X.Xbn
Cloud Security Software in the US industry analysis
Online cloud service use has skyrocketed during the current period, with major implementation occurring during 2020 as remote business activity surged following COVID-19 lockdowns. Major growth has happened since the pandemic, with organizations increasingly deploying more cloud solutions, ultimately leading to higher rates of cloud security adoption. As a result, revenue is expected to grow at a CAGR of 6.7% to $17.2 billion through 2024, supported by 15.5% growth during 2024, as profit returns to growth and makes up 19.4% of revenue.
Trends and Insights
- Heightened data hacks and leaks have caused an uptick in demand for security software. Consumers, businesses and governments that went remote during COVID-19 lockdowns seek to minimize their risk using industry services.
- The financial sector is a popular target of cyberattacks. These companies have access to significant personal information and high revenue, making cyberattacks highly rewarding.
- Proximity to downstream buyers enables software developers to establish strong relationships. However, cloud software can be installed remotely, making location less crucial.
- Well-established companies with strong reputations dominate the industry. Buyers favor larger companies with greater resources who have been working in the cybersecurity space. These companies tend to be more reliable and capable of adapting to changes.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 6.7 % over the past five years, to reach an estimated $17.2bn in 2024.
Trends and Insights
Heightened levels of cloud adoptions lead to a surge in security software sales
- Since 2020, there has been a 14.0% climb in companies that use cloud software in their business, according to Forbes. This reflects the global economy's pivot to remote work following the pandemic, with around 94.0% of companies now using cloud solutions.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Cloud security advancement and AI investment will be highly correlated
- With cyber criminals also enlisting artificial intelligence to launch more effective attacks, cloud security companies will need to make continued investments in AI to guarantee their technological advantage.
Biggest companies in the Cloud Security Software in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Microsoft Corporation | 3,282.1 | 1,320.5 | 40.2 | |
Amazon.Com, Inc. | 1,807.9 | 472.6 | 26.1 | |
Cisco Systems, Inc. | 777.3 | 272.2 | 35.0 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Data loss prevention, Information and event management and Identity and access management . Data loss prevention is the largest segment of the Cloud Security Software in the US.
Trends and Insights
Identity and access management dominates the industry
- Identity and access management solutions aim to ensure that the user trying to access the server has the proper credentials in the organization to protect confidential information.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Computer Manufacturing in the US
- Telecommunication Networking Equipment Manufacturing in the US
- Database, Storage & Backup Software Publishing in the US
International industries
- Software Publishing in Canada
- Cybersecurity Software Services in Australia
- Software Publishing in the UK
- Software Publishing in Ireland
- Software Development in Ireland
Table of Contents
About this industry
Industry definition
Companies in this industry offer software and policies to ensure data privacy, security and protection for organizations using cloud platforms. Industry operators also monitor and respond to new threats following development and implementation.
What's included in this industry?
Developing data loss prevention softwareEnabling data security software within a cloud settingIdentity and access management softwareBusiness cloud security solutionsCompanies
Microsoft CorporationAmazon.Com, Inc.Cisco Systems, Inc.Purchase this report to view all 6 major companies in this industry.
Related Terms
SOFTWARE AS A SERVICE (SAAS)CLOUD COMPUTINGWANNACRY ATTACKMALICIOUS SOFTWARE (MALWARE)FIREWALLIndustry Code
NAICS 51121 - Cloud Security Software in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Heightened data hacks and leaks have caused an uptick in demand for security software. Consumers, businesses and governments that went remote during COVID-19 lockdowns seek t...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The financial sector is a popular target of cyberattacks. These companies have access to significant personal information and high revenue, making cyberattacks highly rewardi...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Proximity to downstream buyers enables software developers to establish strong relationships. However, cloud software can be installed remotely, making location less crucial.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Well-established companies with strong reputations dominate the industry. Buyers favor larger companies with greater resources who have been working in the cybersecurity spac...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The growing demand for cloud services creates new markets for cloud security software. This has enabled companies to grow their standing in markets such as car manufacturing.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Microsoft Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Amazon.Com, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Cisco Systems, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Microsoft Corporation, and factors influencing its performance in the industry
- Description and key data for Amazon.Com, Inc., and factors influencing its performance in the industry
- Description and key data for Cisco Systems, Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry currently has a low level of regulation. However, as more consumers and businesses migrate operations to the cloud, federal and state regulators are expected to ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The requirement for skilled labor for software production leads to wages being the highest expense for operators. R&D needs during the period have kept wages climbing.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cloud Security Software in the US industry in United States in 2024?
The market size of the Cloud Security Software in the US industry in United States is $17.2bn in 2024.
How many businesses are there in the Cloud Security Software in the US industry in 2024?
There are 1,394 businesses in the Cloud Security Software in the US industry in United States, which has grown at a CAGR of 2.0 % between 2019 and 2024.
Has the Cloud Security Software in the US industry in United States grown or declined over the past 5 years?
The market size of the Cloud Security Software in the US industry in United States has been growing at a CAGR of 6.7 % between 2019 and 2024.
What is the forecast growth of the Cloud Security Software in the US industry in United States over the next 5 years?
Over the next five years, the Cloud Security Software in the US industry in United States is expected to grow.
What are the biggest companies in the Cloud Security Software in the US market in United States?
The biggest companies operating in the Cloud Security Software market in United States are Microsoft Corporation, Amazon.Com, Inc. and Cisco Systems, Inc.
What does the Cloud Security Software in the US in United States include?
Developing data loss prevention software and Enabling data security software within a cloud setting are part of the Cloud Security Software in the US industry.
Which companies have the highest market share in the Cloud Security Software in the US in United States?
The company holding the most market share in United States is Microsoft Corporation.
How competitive is the Cloud Security Software in the US industry in United States?
The level of competition is moderate and steady in the Cloud Security Software in the US industry in United States.
