Revenue Forecast

The revenue estimate for the base year 2023 is $5,451.9 million, with a CAGR of 15.1% for the study period 2023-2027.

The Impact of the Top 3 Strategic Imperatives on the Email Security Industry

Innovative Business Models

Why

• The dearth of cybersecurity professionals is shaping how organizations mold their security infrastructure.
• Organizations, especially small businesses, outsource email security services because of security staff shortages. As a result, many email security solution vendors cater specifically to the small business segment.

Frost Perspective

• Organizations need security solutions that are easy to deploy and manage with a limited number of alerts that can be quickly taken care of automatically.
• Automatic threat resolution frees up security teams’ time. Vendors are tailoring solutions to meet these needs, which will likely become more prevalent over the next 3 years.

Disruptive Technologies

Why

• Since email is the most widely used business communication tool, attackers often take advantage of weaknesses in email security to launch sophisticated, targeted attacks.
• Phishing attacks utilizing artificial intelligence (AI) technology have increased, with attackers using AI-driven social engineering tactics to prey on users.

Frost Perspective

• Attackers compromise cloud-based environments to gain access to an organization’s systems and exfiltrate data through machine learning (ML) and AI methods.
• Organizations desire advanced AI and ML security solutions to combat these attacks. Many vendors promote AI-based solutions as legacy security email gateways (SEGs) can no longer keep up with the advanced threats organizations face.

Competitive Intensity

Why

• The email security industry comprises many vendors. These include a handful of large security companies, with email security start-ups making up the rest of the industry.
• Email security start-up vendors provide niche technologies and solutions that aim to fulfill an unmet industry need.

Frost Perspective

• Email security vendors, including start-ups, must work diligently and keep pace with advanced technologies to innovate continuously. The industry is evolving rapidly due to the constantly changing threat landscape.
• As more organizations prioritize enhancing their cybersecurity posture, vendors with innovative, advanced email security solutions will remain top of mind in the industry.

Scope of Analysis

• Email is an important means of business communication. It is also one of the main gateways for cybercrime and the primary vector of phishing attacks. Email can facilitate the spread of malware throughout an organization’s network.
• Email security is a software platform that serves the primary functions of:
  • Protecting against malware and targeted cyberattacks
  • Preventing access to inappropriate or unproductive content
  • Tracking and monitoring communications for compliance, regulatory issues, and theft
• The study provides revenue breakdowns and forecasts by the following segments:
  • Industry verticals: Banking and finance, education, government, healthcare and medical, manufacturing, retail, technology/telecommunications, utilities, media and entertainment, professional, scientific, and technical services, and others (the study does not break the Others category down)
  • Geographical regions: North America; Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Latin America (LATAM)
  • Companies by the number of employees: Small businesses (less than 101), midsized businesses (101–1,000 and 1,001–2,500), large businesses (2,501–5,000 and 5,001–10,000), and enterprises (10,000 or more)

Segmentation

Geographic Segmentation

North America

• North America covers the United States, Canada, Greenland, and the Caribbean Islands. The United States dominates this region in email security revenues.
• North America is the largest market in revenue and is expected to remain so during the forecast period.
• Most top email security vendors are based in the United States.
• Many large companies and organizations (high-value targets) have headquarters in North America, especially in the United States.

EMEA

• EMEA includes countries in Europe, the Middle East, and Africa.
• Compliance work around new data privacy regulations, such as the General Data Protection Regulation (GDPR) statutes, drive industry growth in EMEA.
• Some geographies demand that organizations process web traffic in-region, requiring local or in-region data storage.
• Financial services is a major sector for email security, particularly banking.

APAC

• APAC encompasses East and Southeast Asian countries, Japan, and Australia.
• APAC’s robust growth in email security is catching up with North America and EMEA.
• China’s Personal Information Protection Law, effective November 1, 2021, is forecast to boost regional demand.

LATAM

• LATAM covers Central and South American countries and Mexico.
• An emerging region with modest activity, it has the smallest email security industry.
• Many email security vendors manage the region from their North American offices.
• While LATAM offers vast potential, it attracts little attention from only a handful of email security vendors.

Competitive Environment

Key Competitors

• Abnormal Security
• Barracuda Networks
• Broadcom
• Check Point
• Cisco
• Coro
• Egress
• Forcepoint
• Fortra
• INKY
• IRON SCALES
• Microsoft
• Mimecast
• OpenText
• Proofpoint
• Sophos
• Tellrix
• Trend Micro
• WithSecure
• ESET
• Fortinet
• Hornetsecurity
• Kaspersky
• Libravsa
• OPSWAT
• Perception Point
• Retarus
• Trend Micro
• WithSecure