Gartner expects the cloud-based security services market to reach $2.1 billion [£1.3 billion] by the end of the current year as the market continues to show strong growth with the market rising to $3.1 billion [£1.9 billion] by 2015.
The research firm expects the market to accelerate even further with cloud-based tokenisation and encryption, security information and event management [SIEM], vulnerability assessment and web application firewalls growing fastest during 2013 and 2014.
"The benefits cloud security offers — particularly encryption — are making it an increasingly popular choice. However, trust concerns and regional variations mean that providers will have to assess each market opportunity carefully before deciding which to focus on,” said Kelly Kavanagh, principal research analyst at Gartner.
Gartner maintains that email security, web security services, and identity and access management [IAM] will be the most sought after three strands to cloud security, and that encryption is becoming increasingly important.
"The benefits of deploying cloud-based security services are clear," said Kavanagh. "Aside from the broad area of IAM, specific controls, such as encryption, are becoming vital to the adoption of cloud computing. They are further helping to generate interest in this particular form of security service delivery."
Software as a service [SAAS] applications as well as managed security services [MSS} are two major factors driving cloud security services, with reliance on SAAS expected to continue, SIEM and IAM predicted to have the best potential.
"Areas such as SIEM and IAM offer the biggest growth potential, although for SIEM this will be from a small base," said Kavanagh.
One problem that cloud security services providers could find is that although the growth in cloud-based security will grow the revenue opportunities will remain low for the time being.
When looking at cloud security services on a region by region basis the market varies sharply with differences in maturity, cultural acceptance and local IT infrastructure as well as regulatory differences – especially in Europe.