Cloud-based Email Security Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Deployment Model (Public, Private, Hybrid), By End-user Industry (BFSI, Government, IT and Telecommunications, Retail), By Region, and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.01 Billion
CAGR (2026-2031)	9.38%
Fastest Growing Segment	BFSI
Largest Market	North America
Market Size (2031)	USD 1.73 Billion

Market Overview

The Global Cloud-based Email Security Market will grow from USD 1.01 Billion in 2025 to USD 1.73 Billion by 2031 at a 9.38% CAGR. Cloud-based email security consists of hosted services that filter incoming and outgoing communications to mitigate threats such as malware, spam, and phishing before they enter a corporate network. The market is primarily driven by the widespread adoption of cloud-native office suites and the structural shift toward remote work environments, both of which require scalable, perimeter-independent protection. Additionally, the sheer volume of automated attacks propels the demand for robust filtering solutions. According to the Anti-Phishing Working Group, in 2024, the volume of phishing attacks observed in the fourth quarter alone reached 989,123, highlighting the critical necessity for effective defense mechanisms.

However, market expansion faces a significant challenge regarding data sovereignty and privacy compliance. As organizations deploy cloud security solutions globally, navigating the complex web of international data protection regulations creates integration hurdles and potential liability risks. This regulatory fragmentation can delay adoption cycles as multinational corporations must verify that hosted security providers meet strict local jurisdictional requirements for data handling and storage, thereby complicating the implementation of unified security policies across different regions.

Key Market Drivers

Escalating frequency of sophisticated phishing and ransomware attacks is the primary catalyst propelling the Global Cloud-based Email Security Market. Cybercriminals are increasingly weaponizing legitimate cloud infrastructure and utilizing advanced social engineering techniques to bypass traditional Secure Email Gateways (SEGs). This surge in attack volume and complexity forces organizations to migrate from on-premise appliances to agile, cloud-native solutions capable of real-time threat analysis and URL isolation. According to Fortra, December 2024, in a report analyzing phishing trends, phishing campaigns leveraging legitimate Cloudflare domains more than doubled between 2023 and 2024, underscoring the urgent need for advanced defense mechanisms against trusted-source attacks.

Integration of AI and Machine Learning for advanced threat detection represents the second major driver, fundamentally reshaping the market landscape as vendors race to counter AI-generated threats. Modern email security platforms are leveraging behavioral AI to detect anomalies in communication patterns that rule-based systems miss, such as subtle business email compromise (BEC) indicators. According to Darktrace, March 2025, in the 'State of AI Cybersecurity 2025' report, 78% of surveyed CISOs reported that AI-powered threats are having a significant impact on their organizations. The broader ecosystem is responding with heightened defensive posture; according to Cloudflare, January 2025, in the '2024 Year in Review' report, malicious bot traffic has grown to account for between 40% and 60% of global internet traffic, necessitating the robust, automated filtering capabilities found in integrated cloud email security solutions.

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Key Market Challenges

One significant challenge hampering the growth of the Global Cloud-based Email Security Market is the complexity of data sovereignty and privacy compliance. As detailed in the overview, the regulatory landscape is fragmented, with nations enforcing strict and often conflicting laws regarding where data must be stored and how it is handled. This creates a substantial barrier for multinational organizations that rely on the borderless nature of cloud services. To avoid liability and ensure adherence to local jurisdictional requirements, companies are forced to conduct rigorous and time-consuming legal reviews before implementing cloud email solutions. These integration hurdles inevitably prolong procurement cycles and delay the deployment of necessary defense mechanisms.

This operational bottleneck is further aggravated by a lack of available expertise to navigate such regulatory webs. According to the ISC2, in 2024, 67% of organizations reported a shortage of cybersecurity staff. This severe workforce scarcity directly impacts the market's expansion, as constrained security teams struggle to manage the additional workload of verifying compliance across multiple regions. Consequently, the inability to quickly validate and align cloud-based services with diverse sovereignty mandates slows down the overall adoption rate, restricting the market’s potential breadth.

Key Market Trends

Expansion of protection to cloud collaboration suites is reshaping the market as attackers increasingly exploit trusted platforms like Microsoft Teams and SharePoint to bypass email filters. Security solutions are extending coverage to prevent lateral movement within these applications, where users often implicitly trust shared content. This shift is critical as criminals weaponize legitimate services to evade perimeter defenses. According to Abnormal Security, January 2025, in the 'Reflecting on the Milestones, Innovations, and Challenges That Shaped 2024' article, there was a 350% increase year-over-year in attacks leveraging compromised file-sharing tools to bypass authentication. Vendors are responding by integrating API-based scanning directly into collaboration ecosystems to neutralize non-email threats.

The evolution from awareness training to Human Risk Management (HRM) prioritizes quantifying behavioral vulnerabilities over generic education. Organizations are moving toward adaptive platforms that analyze user interactions to identify high-risk individuals who disproportionately expand the attack surface. This enables dynamic interventions specifically tailored to the workforce segment exhibiting negligent behavior. According to Mimecast, March 2025, in the 'The State of Human Risk 2025' report, just 8% of employees account for 80% of security incidents, highlighting the inefficiency of broad strategies. By concentrating defenses on these outliers, enterprises can effectively lower risk profiles without burdening the entire organization.

Segmental Insights

The Banking, Financial Services, and Insurance sector represents the fastest-growing segment in the global cloud-based email security market due to the high volume of sensitive data it manages and the increasing frequency of targeted cyberattacks. Financial institutions must adhere to rigorous compliance obligations, such as the Payment Card Industry Data Security Standard, which mandates strict protection of client information. Consequently, these organizations are prioritizing cloud-based email security solutions to mitigate data breach risks and ensure regulatory adherence while supporting the industry transition toward digital and remote banking platforms.

Regional Insights

North America maintains a dominant position in the Global Cloud-based Email Security Market due to the early and widespread implementation of cloud infrastructure by enterprises in the United States and Canada. The region faces frequent targeted cyber incidents, including business email compromise, which compels organizations to adopt resilient defense strategies. Additionally, strict adherence to data privacy laws such as the Health Insurance Portability and Accountability Act and the California Consumer Privacy Act necessitates rigorous email protection measures. The strong presence of established market vendors further reinforces the availability and integration of comprehensive security solutions across the region.

Recent Developments

• In August 2024, a provider of AI-native human behavior security solutions announced that it had raised $250 million in a Series D funding round, bringing its valuation to $5.1 billion. The investment was intended to accelerate the company’s mission of protecting organizations from sophisticated cyber attacks using artificial intelligence. The company also reported surpassing a significant revenue milestone, highlighting the increasing demand for its cloud-based email security platform. This capital infusion was planned to support further product innovation and the expansion of its protection capabilities across various cloud applications and communication platforms.
• In July 2024, a global human risk management platform announced the acquisition of Code42, a firm specializing in insider threat management and data loss prevention. This strategic move was designed to integrate the acquired company’s technology into the buyer’s platform, thereby providing organizations with comprehensive visibility into human-centered security risks. The collaboration aimed to address the growing attack surface by combining email security with advanced insider risk detection capabilities. By incorporating these new tools, the company sought to help businesses better mitigate data leakage and respond effectively to internal security threats within their digital ecosystems.
• In May 2024, a leading cybersecurity and compliance company unveiled two significant innovations for its email security platform to address the modern threat landscape. The launch included a pre-delivery defense system designed to intercept socially engineered threats and malicious links before they reach user inboxes. Additionally, the company introduced an adaptive email security capability that utilizes behavioral artificial intelligence to detect and neutralize post-delivery threats, such as lateral internal phishing and advanced email fraud. These enhancements were developed to provide end-to-end protection across the entire email delivery chain, addressing the evolving complexities of human-centric cyber risks.
• In March 2024, a leading international cloud security and compliance SaaS provider completed the acquisition of Vade, a prominent French email cybersecurity company. This strategic collaboration aimed to strengthen the acquiring company's presence in key European markets, particularly France and Germany, while simultaneously expanding its global reach. The integration of Vade’s advanced threat detection capabilities, which analyze billions of messages daily, was intended to enhance the unified company’s product offerings for Microsoft 365 environments. The deal underscored a commitment to providing robust, data-sovereign security solutions to managed service providers and enterprises worldwide, positioning the combined entity as a major force in the sector.

Key Market Players

• Proofpoint
• IRONSCALES
• ABillionormal Security
• Cisco Secure Email
• Mimecast
• Barracuda Networks
• Microsoft Defender
• Check Point Harmony Email & Collaboration
• Fortinet FortiMail
• TitanHQ Limited

By Deployment Model	By End-user Industry	By Region
Public Private Hybrid	BFSI Government IT and Telecommunications Retail	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Cloud-based Email Security Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Cloud-based Email Security Market, By Deployment Model:

• Public
• Private
• Hybrid

• Cloud-based Email Security Market, By End-user Industry:

• BFSI
• Government
• IT and Telecommunications
• Retail

• Cloud-based Email Security Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE