Microsoft is set to generate an estimated USD 37.2 billion in revenue from its cybersecurity division this year alone, further solidifying its position as the industry leader
Spending on cloud security is expected to reach USD 111 billion in 2025, representing around 3 per cent of total global IT expenditure, with the United States accounting for a staggering 38 per cent of this figure. These findings, released in HG Insights’ latest market snapshot, paint a clear picture of both the scale and imbalance in cloud security investments around the world.
Microsoft is set to generate an estimated USD 37.2 billion in revenue from its cybersecurity division this year alone, further solidifying its position as the industry leader. The company’s dominance is evident across multiple metrics, including customer count—nearly 60,000 clients rely on Microsoft for cloud security services, placing it well ahead of its closest competitor, Splunk, which trails with under 16,000 customers. Palo Alto Networks, AWS, and Fortinet round out the top five. Notably, Google sits in tenth place, despite its longstanding influence in internet services and increasing presence in cloud computing through the Google Cloud Platform (GCP).
A landscape of contrasts
HG Insights, a market intelligence firm with access to data from more than 11 million businesses globally, provides ongoing analysis of cloud infrastructure and security adoption trends. While the size of the US market may not come as a surprise, its outsized share—USD 42 billion—eclipses entire regions: the Asia-Pacific accounts for USD 35.58 billion, while Europe, the Middle East and Africa (EMEA) follow with USD 26.38 billion. This makes the US not only the largest consumer of cloud security, but also the most strategic market for vendors and developers.
Industry insiders attribute the US dominance to a convergence of cultural and economic factors. The West Coast’s penchant for early technology adoption and the East Coast’s financial might—especially in the finance and insurance sectors, which are among the largest cloud security consumers—help explain the market’s maturity.
Microsoft, again, out in front
Microsoft’s stronghold in the cloud-native application protection platform (CNAPP) space mirrors its broader cloud security leadership. With more than 2,500 customers using its CNAPP offering, it outpaces rivals like Palo Alto Networks (just under 1,300) and Wiz (just over 1,200). Once again, Google is notably absent from the top of this list, despite its third-place ranking in cloud infrastructure behind AWS and Azure.
Matt Hogan, VP of growth marketing at HG Insights, suggests history has a role to play. “AWS and Microsoft were the first horses in the barn,” he says. “Google is a little late to the party.” Instead of racing into the cloud security market, Google appears to have prioritised bolstering its threat intelligence capabilities. This included the high-profile USD 5.4 billion acquisition of Mandiant in 2022 and the earlier purchase of VirusTotal in 2012, both of which now underpin the Google Threat Intelligence Platform (GTIP).
Late but not out
Although its current presence in CNAPP rankings is limited, Google’s cloud security ambitions are far from over. In March 2025, the company announced its plan to acquire Wiz for USD 32 billion, a move expected to be finalised in 2026. Wiz’s current standing as the third-largest CNAPP provider—despite being a relative newcomer—makes it an attractive acquisition target.
If completed, the deal could significantly shift the cloud security landscape. Combining Wiz’s agile and widely adopted platform with Google’s vast infrastructure and threat intelligence assets could pose a significant challenge to incumbent leaders.
Evolving roadmap
HG Insights’ data offers more than just a static view. Its continuously updated analysis serves as a strategic roadmap for enterprises aiming to enter or expand within the cloud security market. Whether large corporations eyeing acquisitions or startups fine-tuning their go-to-market strategies, the direction of travel is clear: the US remains the heart of global cloud security activity, Microsoft continues to dominate, and Google is quietly positioning itself for a powerful resurgence.
As the market braces for another year of consolidation, expansion and innovation, it is clear that cloud security is no longer a niche concern—it is a fundamental pillar of digital infrastructure across sectors and geographies.
