The cloud security market in retail is expected to register a CAGR of 27.8% over the forecast period of 2020-2025. According to the 2018 Cost of a Data Breach Study by Ponemon Institute, the average cost of a data breach is USD 3.86 million, which is a 6.4% increase on the 2017 cost of USD 3.62 million. To counter the same, investment in cloud security solutions in retail is increasing.
- Growing threats of cyber attacks are augmenting market growth. According to latest report by Thales eSecurity, half of U.S. retailers were breached in the past year, well above the 27% global average for retailers. Most of the login attempts made on online retailers' websites are hackers using stolen data.
- Migration of retail decision processes from on-premise to cloud is a challenge since most of the processes like merchandise management and accounting are supported by on-premise solutions. Retailers should focus on new events like customer information storage or customer buying pattern that could be transferred to the cloud. For the old events, a more intelligent ERP system could be developed which enables the retail functions to scale as needed.
Scope of the Report
Retailers want to enable a seamless customer experience and ensure staying away from the security breach headlines, hence, they are adopting cloud applications to balance efficiency and security. It helps them to maximize shareholder value, streamline their business operations, and effectively address customer expectations.
Key Market Trends
Intrusion Detection and Prevention to Register a Significant Growth
- An Intrusion Detection and Prevention Software (IDPS) monitors network traffic for signs of a possible attack. When it detects potentially dangerous activity, it takes action to stop the attack. Often this takes the form of dropping malicious packets, blocking network traffic or resetting connections. The IDPS also usually sends an alert to security administrators about the potential malicious activity.
- The two main contributors to the successful deployment and operation of an IDS or IPS are the deployed signatures and the network traffic that flows through it.
- According to Insider Threat 2018 report, most insider exploits are detected through IDPS. This indicates the popularity of IDPS and why majority of the vendors are offering this service.
Asia-Pacific to Witness the Highest Growth
- Asia is a major player in the changing retail landscape due to rise in e-commerce startups. China leads the e-commerce market with Alibaba recently opening a pop-up store in Australia and reflecting the 'phygital' trend towards digitally-enhanced offline experiences.
- Offline retail is also gaining popularity. According to the International Labour Organization (ILO), it employs an aggregate of 44.6 million workers, which represents 16 percent of the region's total employment.
- Kroger and Microsoft announced a collaboration in January 2019 to redefine the customer experience using Kroger Technology products powered by Microsoft Azure, the retailer's preferred cloud platform for Retail as a Service (RaaS).
- To retain the data authenticity generated by retail industry (for instance, customer shopping data for personalization), move towards cloud and hence its security is of utmost importance.
The market for cloud security in retail is fragmented due to the rise in concerns regarding cyber attacks. Many companies are expanding their services to cater to online and offline stores.
- May 2019 - Trend Micro extended the reach of its container security offerings which will inspect all lateral and horizontal traffic movement between containers and platform layers It has added support for scanning of images prior to being loaded into a container registry.
- February 2019 - Together, Imperva and Prevoty announced to create a consolidated, comprehensive platform for application and data security. The combination of Imperva and RASP (Prevoty's flagship product) extends customers' visibility into how applications behave and how users interact with sensitive information.
- February 2019 - Announced Email Fraud Protection, an automated solution that helps organizations block fraudulent emails from reaching enterprises, ensuring complete brand reputation and sender trust.
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