Container Security Scanning Market

Market Outlook for Container Security Scanning

By value, Fact.MR has projected close to 8% CAGR for container security scanning sales during 2021-2031. Due to increasing number of cyber-attacks across the world, the market valuation is set to expand more than 2X and top a US$ 7 Bn valuation by 2031. Also, container vulnerability scanning for cloud native applications is expected to see a surge over the coming years.

Report Also Addresses:

• Market Estimates and Forecasts (2016-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• COVID-19 Impact on Container Security Scanning and How to Navigate
• Recommendation on Key Winning Strategies

Revenue of Container Security Scanning from 2016 to 2020 Vs Market Projections for 2021 to 2031

Historically, from 2016 to 2020, market value of container security scanning increased at around 6.3% CAGR, wherein, countries such as the U.S., Canada, Germany, China, and Japan held significant share in the global market.

With growing number of cyber-attacks across the world, the market for container security scanning is forecast to expand at a moderate CAGR of close to 8% over the coming 10 years.

How is Container Security Scanning in Combating Growing Cyber-attacks?

The value of damage caused due to cybercrime can surpass the GDP of most countries. This has resulted from an upsurge in cybercrime across the world. Although there exists several laws pertaining to it across countries, cyber criminals are conducting their malicious activities across borders to evade the chances of being caught. According to Cybersecurity Ventures, annually, cybercrime costs around US$ 6 trillion globally, which can be better understood as a loss of US$ 190,000 per second.

In 2020, COVID-19 compelled organizations to create remote workforces and operate from cloud-based platforms. Additionally, with the rollout of 5G connected devices, the scope for cyber-attacks has increased. This in turn helped drive up the importance of container security, owing to the importance of having secure applications and data.

Furthermore, companies are investing heavily in security systems in order to safeguard their data. For instance, the global security market is anticipated to reach US$ 170 Bn by 2022. Moreover, exponential growth in the number of internet connections has also driven cyber-attacks in various industries.  For instance, a few of the most impacted industries from cyber-attack are healthcare, manufacturing, construction, finance, and others.

In the healthcare sector, majority of hospital platforms are under too much pressure, especially due to COVID-19, to upgrade hospital systems in order to secure them from cyber-attacks and other thefts. As such, the healthcare sector has increased its spending on security platforms. Additionally, with heavy workload in the healthcare sector, chances of human error also increases. For instance, according to Cybint, 95% of cybersecurity breaches are caused by human error.  

Companies such as IBM, Alphabet, Microsoft, Qualys, Tenable, Aqua Security Software, Capsule8, Anchore, Hewlett Packard, Threat Stack, StackRox, NeuVector, Snyk, Mirantis, and Palo Alto Networks have been actively working to bring constant evolution to their cyber security products, including container security scanning.

Deep inspection of container images, definition, and application of policies to prevent deployment of dangerous images, checking for vulnerabilities, etc., are amongst the core functionalities that have been building the confidence of users.

What are the Roadblocks for Container Security Scanning Providers?

With the rapidly growing container security scanning market, applications and processes are becoming complex. Container-based virtualization is a comparatively new technology that is being adopted at an incredible pace by businesses across the globe. There is significant shift from VMs to container security in order to offer better security software and easy backend processes.

However, containers have their own complexities. They increase app flexibility, but at the same time add complexity. This complexity may arise in terms of security, orchestration, data storage, and monitoring.

Additionally, container-based virtualization is more complex than traditional virtual machine security. Containers require multi-level security as they have multiple layers. This increases complexity in container security implementation. Moreover, the container registry requires the Docker and the host operating system to be secured as well.

Thereby, all these factors add complexity to container security systems, which, in turn, restrains market growth to some extent.

Which Region Offers the Largest Opportunity for Sales of Container Security Scanners?

East Asia is expected to become the second-largest container screening market, surpassing Europe by 2031, with a projected CAGR of around 11% during 2021 to 2031. China, Japan, and South Korea have progressed at a rapid pace in the recent past in terms of technological development.

Surge in the number of application developments in these regions to meet the demand of a growing urban population has accelerated the adoption rate of container security scanning.  

How is Growing AI and Machine Learning Anticipated to Open Opportunity Windows for Container Security Scanning Providers?

Nowadays, artificial intelligence (AI)- and machine learning (ML)-based container security scanning applications are being used to help in scaling apps and leveraging the data capacity to machine learning models, through containerized clusters. Container platforms, including Kubernetes and Docker, are allowing to build a unified architecture for AI applications.

However, over the coming years, enterprises can build containerization for effective operation of AI and machine learning applications. AI and machine learning can offer a lucrative opportunity to the container security market, as they give more control to developers over resources and managing apps on the cloud, including Azure, AWS, and others. This will upgrade the technology of container security by creating more powerful, scalable applications, while spending less money on storage and networks.

• Recently, Sysdig Secure combined AI into container security. This will not only understand container and environment data, but will also allow learning of container behaviour as the application environment changes.

Country-wise Analysis

Why Will the U.S. Remain the Epicentre of Container Security Scanning Revenue Generation?

The market in the U.S. expanded at 7% CAGR during 2016 to 2020, and is anticipated to register higher growth of more than 9% CAGR through 2031. The United States is the most attacked country in cyber space, globally.

In May 2020, the National Security Agency (NSA) reported that Russian hackers were stealing sensitive data from U.S.-based organizations through a bug in email server. While it is highly likely that it may initiate an offensive cyber-attacks against targets in Russia, the country is also boosting its defence frameworks against any forthcoming attacks. These events are predicted to boost container security scanning revenue in the country.           

How is China’s Growing Prosperity Expected to Boost Adoption of Container Security Scanning?

The market for container security scanning in China is projected to surge at over 17% CAGR during the forecast period. A China-based Internet security company, 360, has detected that in the recent past, around 2,700 cyber-attacks were launched against China by 40 high-level international hacking organizations.

Growing technological advancements of the country coupled with reliance of its infrastructure on the Internet has exposed it to varied cyber-attacks. To safeguard its progress, Chinese authorities as well as enterprises are expected to increase their expenditure container security scanning software and solutions.      

Category-wise Insights

Why are Single Node Clusters Most Demanded in Container Security Scanning?

In 2020, single node container security clusters accounted for around 64% share of the global market. Single node container security scanning is being offered by almost all providers, as it is the traditional version.

Besides, single node installation is simpler as compared to multi node. However, owing to the higher security of multi node clusters, its market is expected to increase in terms of share by 278 BPS.

Why is the Healthcare Vertical a Revenue Hub for Container Security Scanning Providers?

Container security scanning for the healthcare sector is expected to garner an absolute dollar opportunity of US$ 1.7 Bn during 2021-2031. The healthcare sector has grown at immense pace in the recent past with the evolution of a number of medical devices and health applications.

However, the industry’s association with technology has also made it vulnerable to cyber-attacks. Healthcare data being vital, needs utmost protection. Owing to these factors, adoption of container security scanning in the healthcare sector has been growing at a rampant pace.           

How Has COVID-19 Impacted Revenue Generation from Container Security Scanning?

COVID-19 has moderately impacted demand for container security scanning, reason being, complete shutdown in manufacturing and construction companies in the initial period.

During the pandemic, end users and governments in the U.S. and Canada had surplus funds to safeguard their IT services from external threats. Due to this, the impact was less in North America as compared to other regions.

In contrast, the market in South Asia was significantly impacted. The region is hard hit by the pandemic, and most of the countries endowed most of their resources towards safety and hygiene. Being already low in IT budgets, regional expenditure on IT security halved as compared to the previous year.

Competitive Landscape

Majority companies discussed in the report have focused on product developments, patent acquisitions, partnerships, and mergers & acquisitions.

Some of the key developments are:

• In May 2021, Anchore announced that it has secured containers for artificial intelligence, machine learning, and high performance computing (HPC) on NVIDIA NGC. It will ensure the software’s security hosted on NVIDIA’s NGC. NVIDIA has been using Anchore’s container scanning technology since 2019.
• In May 2021, Wiz, a container security startup, announced that it had raised US$ 120 Mn in a salesforce-led funding round. It will bring total funding raised by Wiz to US$ 350 Mn.     

Similarly, recent developments related to companies offering container security scanning have been tracked by the team at Fact.MR, which are available in the full report.

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Countries Covered	United States Canada Brazil Mexico Germany U.K. France Russia Italy BENELUX China Japan South Korea India Malaysia Singapore Australia New Zealand South Africa GCC Countries Turkey.
Key Segments Covered	Cluster Deployment Organization Size Vertical Region
Key Companies Profiled	International Business Machines Corporation (IBM) Alphabet Inc. Microsoft Corporation Hewlett Packard Enterprise Development LP Tenable Inc. Aqua Security Software Palo Alto Networks Qualys, Inc. Capsule8, Inc. Anchore Inc. Threat Stack Inc. StackRox Inc. NeuVector Inc. Snyk Ltd. Mirantis Inc.
Pricing	Available upon Request

Key Market Segments Covered

• By Cluster

  • Single Node Container Security Clusters
  • Multiple Node Container Security Clusters

• By Deployment

  • On-premise Container Security Scanning
  • Cloud Container Security Scanning

• By Organization Size

  • Container Security Scanning for Large Enterprises
  • Container Security Scanning for Small and Medium Enterprises (SMEs)

• By Vertical

  • Container Security Scanning for Healthcare
  • Container Security Scanning for BFSI
  • Container Security Scanning for Government
  • Container Security Scanning for Retail
  • Container Security Scanning for IT and Telecommunications
  • Container Security Scanning for Manufacturing
  • Others

• By Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • MEA