Zscaler Likely to Experience Growth Amidst Trending Cybersecurity Issues

Zscaler (NASDAQ:ZS) has been a pivotal player in the landscape of cybersecurity...

Zscaler (NASDAQ:ZS) has been a pivotal player in the landscape of cybersecurity for more than a decade now. And that comes from no random game of luck. The benchmarking firm has veered from an innovative cloud solutions-providing startup to a now publicly traded corporation staging change through a complex of emerging security technologies that are far from their peak point. Being a SASE-focused company engineering its efforts towards reinforcing the cybersecurity of small- and medium-scale enterprises (SMEs), the company continues to hold prospects keeping it on the margin of growth. Tracks from its past operational paradigm and how it transcends through its growth trajectory today are also a noteworthy mirror to what is possible for Zscaler within its evolution scope.

Zscaler: Tracing From the Threshold

According to its founder, Jay Chaudry, Zscaler was an inspiration born from the anticipation of a cyber-based horizon of corporate industries. And the last few years have seen the manifestation: The need for companies like Zscaler has been far from a projection, as the surging rate of cyberattacks points to the need for novel cybersecurity solutions offering more protection than the perimeter security model had promised.

A Narrowed Look: Zscaler in the Future Market

Zscaler is one of the few cybersecurity firms deploying emerging technologies inclusive of the Secure Access Service Edge (SASE) and the Software-Defined Wide Area Network (SD-WAN), which are currently a model of security sought by many cloud-based organizations today. What’s more, Zscaler’s provision of target zero-trust solutions covering users, workloads, and IoT has not only given it an ample edge against its rivals but narrowed its uniqueness in the industry. A report from EMA defines Zscaler’s competitive position as one with no perfect substitute, thanks to holding the fullest range of integrated cybersecurity solutions. As a frontline player in the pan-industrial deployment of SASE, Zscaler is bound to gain more advantage. Statistics by Gartner on the average growth of the SASE market by 36% till 2025 in contrast to the average 9.5% growth of the global cybersecurity industry is a close-range indication that Zscaler is at a more favorable position to access growth that most of its rivals playing outside the SASE scope and those it leads in its niche. And the growth in the market size of SD-WAN from 3.4 billion US dollars to 13.7 billion US dollars from 2022 to 2027 reveals an estimated CAGR of 31.9% of which Zscaler stands the chance to gain an extensive advantage as a leader of few rivals deploying this solution. However, Zscaler’s disposition to a good share of speculated solution-specific trends is not all that ticks the evaluation boxes for its growth potential. Studies have shown that investors may have to weigh the company’s prospects with a yardstick that measures its long-term growth from internal trends in juxtaposition to the perceived shift in cybersecurity as a whole. This is to further divulge a deeper context of growth in Zscaler’s perimeter.

A Broader Look: Zscaler in the Future Market

Zscaler is bringing a difference to an industry that continues to face new threats from cyber criminals which, in just another context, opens the door to more as an increased number of organizations adopt the gradually mainstreamed full cloud or hybrid work models.

Looking at the bigger picture, the cybersecurity industry is speculated to hit an impressive margin of 2 trillion US dollars as a ripple effect of the countermeasures consistently deployed through the emerging cybersecurity measures to resist the growth of cyberattacks. According to McKinsey, this is a speculation to anticipate if emerging cloud security solutions are adopted to a much fuller measure than they currently are.

With Zscaler deploying its solutions to a market scope characterized by SMEs currently counting into an estimate of 3,000 users, its ability to reinforce growth can be defined as leverage-based, thus highly adaptable to growth amidst the global industrial paradigm of today, as SMEs constitute the majority of businesses today and expand in market size more exponentially. Its long-term objective to expand its user count within the spectrum of SMEs is a yardstick that has led industry experts to anticipate a growth trend directing the company to a total addressable market size of 20,000 SMEs.

The Financial Outlook

With the cybersecurity industry being one of those to exponentially grow long-term with no market saturation in sight, Zscaler stands the chance to see consistent thrift through the growth cycle. As cyberattacks surge within the SME environment, Zscaler’s deployments are expected to drive its revenue to an annual estimate of 1.628 billion US dollars in 2023 and up to 4 billion dollars by 2027. Analysts expect Zscaler to hold a gross margin level of about 81% in the long run and, in the same line of anticipated consistency, many bulls have high hopes that Zscaler will hold a long-term earnings growth rate of 48%. When studied with its envisioned strategic operational focus, these give reason to keep an eye on Zscaler for the coming fiscal years, and even more so, find it worth the consideration for portfolio investment.


As the narrative of cybersecurity unfolds, the growth of the industry is a vivid end to anticipate. For one thing, recession or not, cybersecurity has come to be a need for firms adapting to the new operational status quo. For Zscaler, the complex of trends pointing to the need for a pack of emerging solutions to meet the surge of cyberattacks is one driving it to the fore of the industrial competition and thus meaning growth amidst cybersecurity issues. This is especially so as it is an emerging technology-based firm focusing its deployments of robust solutions on SMEs, giving it the hedge it needs to sustain growth amidst the thrift-reinforcing environmental trends. While short-term growth can be less sure to hope on, as analysts and expert investors have evaluated, the prospects of Zscaler’s growth is a comprehensive line of progressions to anticipate as cybersecurity expands into a more sophisticated industry with emergent solutions such as SD-WAN and Zero-trust solutions — among Zscalers lines of offerings — accelerating in demand.

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