PUBLISHER: The Business Research Company | PRODUCT CODE: 1849228
PUBLISHER: The Business Research Company | PRODUCT CODE: 1849228
Cloud sandboxing is a security measure employed in cloud computing to isolate and assess potentially harmful files or code within a controlled environment. This technique enables the safe testing of files, URLs, and code, ensuring any potential threats are contained and unable to compromise the actual system or network.
The primary types of cloud sandboxing include standalone and integrated sandboxes. A standalone sandbox operates independently within an isolated environment, running programs or applications without impacting the rest of the system. These solutions cater to organizations of varying sizes, including large enterprises, small and medium enterprises (SMEs), and are applied across sectors such as government and defense, banking, financial services and insurance (BFSI), information technology (IT) and telecommunications, healthcare, retail, education, among others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The cloud sandboxing market research report is one of a series of new reports from The Business Research Company that provides cloud sandboxing market statistics, including cloud sandboxing industry global market size, regional shares, competitors with a cloud sandboxing market share, detailed cloud sandboxing market segments, market trends, and opportunities, and any further data you may need to thrive in the cloud sandboxing industry. This cloud sandboxing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The cloud sandboxing market size has grown rapidly in recent years. It will grow from $2.64 billion in 2024 to $3.13 billion in 2025 at a compound annual growth rate (CAGR) of 18.4%. The growth in the historic period can be attributed to increased deployment of cloud sandboxing solutions in education sector, widespread adoption of cloud sandboxing across various other industries, need to secure enterprise networks from advanced malwares and security breaches, increased sophistications in attacking techniques, increased attack surface with increasing digitization and cloud adoption.
The cloud sandboxing market size is expected to see rapid growth in the next few years. It will grow to $5.96 billion in 2029 at a compound annual growth rate (CAGR) of 17.5%. The growth in the forecast period can be attributed to increasing demand for cloud sandboxing in government and defense applications, growing need for cloud sandboxing in banking, financial services, and insurance (BFSI) sector, rising adoption of cloud sandboxing in it and telecom industry, surge in cloud sandboxing usage in healthcare applications, and expanding cloud sandboxing market in retail industry. Major trends in the forecast period include demand of integrated and NGFW combining power of sandboxing, adoption of cloud services, IoT, smartphones, BYOD, adoption of cloud-based security solutions, adoption of devOps and cloud-native security, and adoption of AI and ML for threat detection and response.
The forecast of 17.5% growth over the next five years reflects a modest reduction of 0.5% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Security sandbox solutions relying on imported emulation engines and behavior analysis tools may see increased operational costs due to tariffs. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The cloud sandboxing market is poised for growth driven by the increasing prevalence of cyber threats. Cyber threats encompass malicious activities aimed at damaging or disrupting digital data and services, exacerbated by factors such as rapid digitalization, inadequate cybersecurity measures, and governance gaps. Cloud sandboxing plays a pivotal role in mitigating these threats by offering a secure and isolated environment to analyze and test suspicious code, files, and URLs. This technology is instrumental in detecting and preventing various cyber threats, including malware and ransomware. For example, the Australian Cyber Security Centre reported a significant rise in cybercrime reports in 2022, underscoring the imperative for enhanced cybersecurity measures and driving demand in the cloud sandboxing market.
Leading companies in the cloud sandboxing sector are innovating with advanced solutions, such as AI-powered security services, to effectively manage risks and safeguard sensitive information. These AI-powered services enable swift responses to emerging threats through immediate alerts and automated threat-hunting scripts, accelerating detection and remediation timelines. For instance, Fortinet, a US-based cybersecurity firm, launched FortiOS 7.2 in April 2022, which includes AI-powered security services enhancing its Security Fabric platform. This update features an inline sandbox that transforms traditional detection capabilities into real-time in-network prevention, effectively halting both known and unknown malware threats. FortiOS 7.2 also introduces AI-driven FortiGuard security services and integrates seamlessly across network, endpoint, and cloud environments for comprehensive protection against cyber threats.
In November 2022, Palo Alto Networks, another US-based cybersecurity leader, acquired Cider Security for $195 million. This acquisition strengthens Palo Alto Networks' position in the cloud security market by integrating Cider Security's advanced capabilities into its Prisma Cloud platform. Cider Security, headquartered in Israel, specializes in cloud sandboxing solutions, enhancing Palo Alto Networks' ability to deliver a robust code-to-cloud security solution to its customers.
Major companies operating in the cloud sandboxing market are Cybereason Inc., Cisco Systems Inc., Palo Alto Networks Inc., Juniper Networks Inc., Fortinet Inc., Check Point Software Technologies Ltd., Mcafee LLC, Trellix, CrowdStrike Holdings Inc., Zscaler Inc., Proofpoint Inc., Rapid7 Inc., Sophos Ltd., Forcepoint, Sonicwall, Fireeye Inc., Netskope Inc., Barracuda Networks Inc., Bitdefender, Darktrace Holdings Ltd., Secureworks Inc., WatchGuard Technologies Inc., AT&T Cybersecurity, Ceedo Technologies Ltd., Symantec Corp.
North America was the largest region in the cloud sandboxing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud sandboxing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the cloud sandboxing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The cloud sandboxing market consists of sales of testing sandboxes, training sandboxes, and security sandboxes. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Cloud Sandboxing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on cloud sandboxing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for cloud sandboxing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The cloud sandboxing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.