Cloud Workload Protection Platform Market Size, Share & COVID-19 Impact Analysis, By Component (Compliance Management, Vulnerability Assessment, Runtime Security, Threat Detection and Response, Monitoring, and Others (Encryption management and Micro-segmentation)), By Deployment (Public, Private, and Hybrid), By Enterprise Type (SMEs and Large Enterprise), By End-User (BFSI, IT & Telecom, Government, Healthcare, Manufacturing, Energy & Utilities, Retail, and Others (Education, Media & Entertainment)), and Regional Forecast, 2023-2030

The cloud workload protection platform market size was valued at USD 2.77 billion in 2022 and is projected to grow from USD 3.28 billion in 2023 to USD 12.10 billion in 2030, at a CAGR of 20.5% during 2023-2030. North America dominated the global market with a share of 45.12% in 2022.

A Cloud Workload Protection Platform, also known as CWPP, is a security solution developed to protect server workloads in cloud environments from threats and vulnerabilities, such as malicious intrusions, malware, and unauthorized applications. This solution simplifies visibility and security control for hybrid, multi-cloud networks, including on-premises servers, containers, Virtual Machines (VMs), and serverless workloads.

Cloud workload protection includes vulnerability management, compliance management, runtime security, monitoring, logging, and more. This component protects the cloud environment from malicious activities and cyber threats. Additionally, cloud computing has become a key driver for business growth as it delivers services and applications with speed and scalability. The cloud workload is the primary component of these applications and services as it facilitates the smooth operation of servers.

Moreover, due to the increasing number of ransomware attacks, it is difficult for enterprises to prevent security breaches. Various organizations have started integrating cloud workload protection platforms to provide optimum security for workloads and various applications.

• For instance, according to researchers and the cybersecurity community analysis, 75% of organizations pursued security vendor consolidation in 2022, up from 29% in 2020, to minimize the cost and complexity associated with cybersecurity tools. This integration aims to combine user endpoint and cloud workload security, reduce IT operation inefficiency, and close exploitable security gaps from detection and response alerting.

In our market study, we have examined cloud workload protection platforms offered by market players such as Trend Micro Incorporated, Palo Alto Networks, VMware, Inc., Microsoft, Musarubra US LLC (Trellix), Lacework, Orca Security, and others.

COVID-19 IMPACT

Growing Investments and Demand for Cloud Workload Security amid COVID-19 Pandemic Supported Market Growth

The COVID-19 pandemic led to a shift in operations toward remote work, which created new requirements for IT infrastructure and an expanded attack surface. This scenario placed significant stress on security teams as they had to support IT operations and technologies to address changing risks. The pandemic also triggered a rapid digital transformation across industries, with increased adoption of cloud platforms and migration from data centers to the cloud in response to changes in work environments. For instance,

• According to Logimonitor's survey, 87% of IT decision-makers agreed that the pandemic led to the migration of their workloads into cloud platforms, including private, public, and hybrid cloud environments.

As a result, security and IT teams faced breaches stemming from unpatched vulnerabilities, including attacks from malicious activities, which have become a major threat vector for security teams. Key players in the industry have invested in developing solutions to help companies address these challenges and attract new clients, thus positively influencing market growth. For example,

• In August 2021, VMware launched VMware Carbon Black Cloud Endpoint, featuring vulnerability management, to help customers streamline and consolidate key security functionalities into a single cloud-native platform.

LATEST TRENDS

Adoption of AI and Machine Learning in Cloud Workload Protection Propels Market Development

The rapid digital transformation and the shift to remote work have made cloud computing an essential part of businesses worldwide. Many businesses are continuing to integrate their operations into the cloud, highlighting the need for robust cloud workload protection strategies.

As cloud technologies advance, cybercriminals are becoming more proficient at exploiting vulnerabilities in cloud environments. This development demands the creation of more dynamic and robust cloud workload protection strategies. The adoption of multi-cloud solutions is helping businesses achieve various goals, including improving reliability, scalability, and overall security and governance.

One key market trend is the increasing adoption of Machine Learning (ML) and Artificial Intelligence (AI) technologies in cloud workload protection. These technologies are being used to enhance threat detection and response capabilities, analyze data in real time, identify patterns and anomalies, and reduce potential damage to businesses. For example,

• In June 2023, Wallaroo.AI, a company specializing in scaling production in machine learning (ML), cloud, and on-premise environments, launched early access to ML Workload Orchestration features in its unified production ML platform. This capability enables the execution, automation, and scheduling of integrated data workflows across the production process, based on customer data.

The adoption of AI and ML technologies, along with increased collaboration, presents an opportunity for the cloud workload protection platform market growth.

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CLOUD WORKLOAD PROTECTION PLATFORM MARKET GROWTH FACTOR

Increasing Requirement of Cloud Compliance across Organizations Drives Market Growth 

Cloud storage offers unique agility, speed, and flexibility to businesses. However, this offering also requires a robust compliance and security posture. Cloud compliance is the principle that cloud-delivered systems must adhere to the organization's standards. Various cloud service providers offer security measures and compliance features to safeguard data, despite the inherent risks involved.

Furthermore, key players are partnering with cloud service providers to develop strong cloud security compliance solutions, aiming to establish a solid security posture for workloads. In addition to security policies aligned with compliance standards, an effective cloud workload protection platform allows organizations to create custom security policies tailored to their specific industry or business needs. These CWPP solutions assist users in reporting deviations from their organization's security policies and recommend remediation steps. For example,

• In April 2023, Caveonix launched its fifth-generation cloud protection offering designed to safeguard applications built on cloud-native services, containers, and traditional architecture. This version provides insights and ensures real-time protection through DefenseBot, allowing enterprises to proactively manage their compliance and security posture.

Continuous compliance and risk assessment across cloud workloads are crucial in reducing the attack surface, making the CWPP an integral part of the cloud security strategy.

RESTRAINING FACTORS

Inadequate Integration and Complexity in Deploying the Solutions Restrains Market Growth

Organizations find it challenging to implement the platform due to issues related to cost-effectiveness, flexibility, and the integration of security throughout the software development process. These challenges have been exacerbated by an increase in misconfigurations caused by user errors. To address these issues, organizations have introduced DevSecOps and are actively seeking the right expertise to bridge this knowledge gap.

Many enterprises are now integrating workloads across three or four different cloud environments, adding layers of complexity that require technical competence and relevant experience. According to the Checkpoint Cloud Security Report, 45% of respondents identified a lack of qualified staff as their most significant challenge in protecting cloud workloads.

Furthermore, the rapid deployment and scaling of cloud services result in a constantly changing attack surface. Security solutions can pose challenges for DevOps teams trying to deploy the platform, which, in turn, reduces the demand for cloud workload protection platforms.

SEGMENTATION

By Component Analysis

Vulnerability Assessment Segment Takes Center Stage as Rising Cloud Adoption Drives Demand for Vulnerability Assessment

Based on the component, the market is analyzed into compliance management, vulnerability assessment, runtime security, threat detection and response, monitoring, and others (encryption management, micro-segmentation).

The vulnerability assessment segment is projected to grow at the highest CAGR during the forecast period, primarily because organizations are increasingly shifting their workloads to the cloud environment. This shift makes it essential to have visibility into identities, configurations, data, and workloads.

Vulnerability assessment involves applying security measures such as integrity protection, memory protection, and host-based intrusion prevention to gain visibility into running containers. This visibility helps discover security issues related to file access, network communications, and process activity.

Furthermore, various companies offer vulnerability management tools that configure reports and dashboards displaying threats in a simple and aggregated format across all functional areas. Collaborating with cloud workload protection service providers enhances an organization's cloud security and represents a more significant security investment.

By Deployment Analysis

Public Cloud Dominates Market Share, Enabling Enterprise Workload Management and Optimization

Organizations focus on adopting cloud requirements across businesses to protect and store the data and workload from cyber-attacks and malicious threats. Based on deployment, the market is segmented into public, private, and hybrid.

Public cloud holds a significant market share as providers continue to manage workloads and assist enterprises in optimizing, controlling, and overseeing the cloud.

The shift toward hybrid IT allows organizations to choose the most suitable solution for each task and workload based on criteria such as security, performance, compliance, cost, and other factors. For example,

• In June 2023, Equinix, Inc., the digital infrastructure company, introduced enhancements to Equinix Fabric, offering virtual connections at speeds of 25-50 gigabits per second to Cloud Service Providers (CSPs). These enhancements empower businesses to effortlessly handle larger workloads, build scalable enterprise networks, and instantly provision virtual connections to cloud platforms. Equinix, Inc. is collaborating with Google Cloud to leverage this new capability.

Furthermore, the hybrid cloud is expected to experience significant growth in the market. This growth is driven by the demand for and adoption of hybrid cloud strategies by organizations seeking better control and visibility for securing and protecting data consistently and comprehensively across their cloud infrastructure.

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By Enterprise Type Analysis

Large Enterprises Segment Secures a Sizeable Market Share with Cloud Workload Protection Platforms

With rapid changes in enterprises, the need for cyber flexibility in their digital journeys has increased. The marketplace is divided into SMEs and large enterprises based on enterprise type.

Large enterprises are poised to capture a significant cloud workload protection platform market share, as they are early adopters of cloud workloads, given their complex and distributed IT infrastructure. They rely on the cloud for many workloads and face significant security challenges in protecting their digital assets from cyber threats. The adoption of a CWPP by large enterprises offers regulatory compliance, security measures, and sensitive data protection as complements.

The deployment of cloud workload protection platforms by Small And Medium-Sized Enterprises (SMEs) is steadily growing as these organizations are gradually adopting the cloud for their workloads and recognizing the benefits of cloud workload protection. They are often targeted by ransomware, Denial-of-Service attacks, and other threats, as their security setups are relatively simple and more accessible to breach. Thus, SMEs are expected to experience significant growth during the forecast period.

By End-User Analysis

BFSI to Have Highest Growth Rate Due to Demand for Robust Security and Data Privacy Systems

In accordance with the end-user, the market is divided into IT & Telecom, BFSI, government, healthcare, manufacturing, energy & utilities, retail, and others.

The BFSI sector is poised to experience the highest CAGR during the forecast period. This growth is driven by the increasing adoption of cloud environments for workloads, which enhances efficiency, security, and scalability in banking operations. For example,

• According to the Accenture Banking Cloud Rotation Index 2022, the banking industry witnessed a significant increase in workloads in the cloud from 2021 to 2022. This growth is attributed to the adoption of personalized solutions and the utilization of new data and analytics solutions. The research indicated that approximately 79% of banks had partially migrated their enterprise applications to the cloud.

The BFSI industry also deals with sensitive client data, financial transactions, and regulatory compliance, making it subject to rigorous cybersecurity scrutiny. The integration of a cloud workload protection platform enables users to detect the potential financial consequences of data breaches and regulatory fines. Hence, the demand for cloud workload protection is on the rise, particularly in the BFSI industry. The adoption of a CWPP assists organizations in securing workloads and sensitive data within their cloud environments, ensuring compliance.

REGIONAL INSIGHTS

Geographically, the market is categorized into five key regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

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North America dominated the cloud workload protection platform market with a share of 45.12% and was valued at USD 1.25 billion in 2022. North America is expected to hold the highest market share and continue its dominance due to the growing adoption of cloud technology and remote work. This has increased the demand for cloud workload protection platforms across the region. The regional market is divided among the U.S., Canada, and Mexico. The U.S. exhibits the highest CAGR due to the presence of key regional market players and numerous cloud service providers. The country benefits from high levels of cloud adoption, a robust cybersecurity landscape, and stringent compliance regulations, all of which drive the demand for CWPP. For example,

• In March 2023, SentinelOne announced an expansion of its distributor relationships with Exclusive Networks, Ingram Micro, and Carahsoft. With an increased number of distributors in the market, SentinelOne experts will extend their offerings, further advancing the company's penetration into key verticals across North America.

Additionally, Canada is showing significant growth in the market as Canadian business leaders strategize to enhance their business value by adopting the cloud into their workloads and pursuing broader business-model transformation.

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Europe is expected to hold a significant market share during the forecast period due to the presence of prominent players in the market and the growing adoption of cloud technology. This adoption includes the integration of cloud security practices for complex cloud environments to enhance business value. For example,

• In June 2023, Fidelis Cybersecurity, a global advanced cybersecurity solution provider, announced the expansion of Fidelis CloudPassage Halo's availability in Europe. This expansion by the company will offer Fidelis Halo, a cloud security platform for businesses operating in Europe. It includes continuous workload protection, automated compliance monitoring, real-time intrusion detection, and ensures holistic security across public, private, and hybrid cloud environments.

Asia Pacific is witnessing a significant surge in demand for cloud workload protection due to the increasing adoption of cloud computing, the rising threat of cyberattacks, and the growing need for data protection and compliance management. Moreover, businesses have migrated their operations to the cloud, leading to a greater need for robust security measures.

The market growth of cloud workload protection platforms in the Middle East and South America is primarily driven by the increasing economic value placed on security. This has strengthened the cloud security investments made by countries in the region.

KEY INDUSTRY PLAYERS

Market leaders Focus on Expanding their Product Offerings to Gain Competitive Edge

Key players in the cloud workload protection platform market, including Trend Micro Incorporated, Palo Alto Networks, VMware, Inc., Microsoft, Musarubra US LLC, Lacework, Orca Security, and others, are dedicated to expanding their presence by introducing specific solutions and new products to attract a wide customer base, ultimately enhancing their revenue.

LIST OF KEY COMPANIES PROFILED IN CLOUD WORKLOAD PROTECTION PLATFORM MARKET:

• Trend Micro Incorporated. (Japan)


• Palo Alto Networks (U.S.)


• VMware, Inc. (U.S.)


• SentinelOne (U.S.)


• Microsoft (U.S.)


• Musarubra US LLC (Trellix) (U.S.)


• Lacework (U.S.)


• Orca Security (U.S.)


• Sysdig (U.S.)


• Check Point Software Technologies Ltd. (Israel)


• Cisco Systems, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 - Cisco announced the launch of Panoptica, a Cloud Native Application Security solution, for customers due to the advancement of modern cloud security application needs. This solution will provide lifecycle protection for cloud-native application environments, identify risks easily, and remediate the vulnerabilities with powerful attack path analysis across hybrid and multi-cloud environments.


• July 2023 - Trend Micro Incorporated launched its next-generation cybersecurity platform Trend Vision One – Endpoint Security, which combines detection, prevention, and response for user servers, cloud workloads, endpoints, and data centers. This solution aims to assist customers through their IT transformation.


• June 2023 - Orca Security Ltd. announced a partnership with Google Cloud by deploying Orca’s security platform into the Google Cloud workloads. The company will deploy its Orca Cloud Security platform with various Google security products, including S Google Chronicle, VirusTotal, and Security Command Center. It will offer a comprehensive and more contextual security layer for customers.


• June 2023 - Aqua Security collaborated with the U.S. Army to deploy its cloud-native application protection platform (CNAPP) security through a multi-million contract. This collaboration will provide services and technology for the Army to expand its cloud, rapid software development, implement zero trust architecture, and enable secure, enhancing cloud operations to achieve the mission.


• March 2023 - Bell, a Canadian telecommunications company, partnered with Palo Alto Networks to launch new cloud-native application protection platform (CNAPP) solutions, Cloud Security Posture Protection, and Cloud Security Posture Assessment by integrating with Palo Alto’s Prisma Cloud to identify threats to enterprise data in the cloud and deliver managed services to protect data across complex public, private, and hybrid-cloud environments.

REPORT COVERAGE

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The Cloud Workload Protection Platform Market report covers prominent regions across the globe to gain a better understanding of the cloud workload protection platform. Furthermore, it offers insights into the latest industry and market trends, along with an analysis of technologies rapidly adopted on a global scale. The report also highlights some of the growth-inhibiting constraints and factors, enabling the reader to gain a comprehensive understanding of the industry.

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