Banking Encryption Software Market Expected to Reach $4.98 Billion by 2030

According to a recent report published by Allied Market Research, titled, “Banking Encryption Software Market by Component, Deployment Model, Enterprise Size, and Function: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global banking encryption software industry size was valued at $1.49 billion in 2020, and is projected to reach $4.98 billion by 2030, growing at a CAGR of 12.8% from 2021 to 2030.

Banking encryption software is considered a powerful information security technology which is used by banks to protect customer’s personally identifiable information such as names, addresses, social security numbers, and the credit score from cyber-attacks. The banking encryption software encrypts banks customer’s financial information before inserting it into a data base and decrypts it after customer’s retrieve the data, owing to which many banks and other fintech agencies are adopting this software. In addition, the banking and financial industry has been utilizing encryption technology to protect client information such as customer emails, survey responses, banker notes, and call center transcripts, which helps them in improving business operations.

Encryption software have been helping the bank and financial institutions to protect customer’s financial information from the cyber-attacks, which drives the banking encryption software market growth. In addition, significant increase in fraudulent activities such as accounting fraud, money laundering, and payment card fraud, is the major factor driving the global market growth. However, issues associated with implementation and integration among banks and financial institutions hamper the growth of the market. Conversely, penetration of banking software across the developing nations of Asia-Pacific and LAMEA regions is expected to provide major opportunities for the growth of the predictive analytics in the banking market during the forecast period.

The software segment is expected to garner a significant banking encryption software market share during the forecast period. This is attributed to handling large critical data set of the customers and to enhance their operational efficiency and provide advance security to the bank’s assets and data. However, the service segment is expected to grow at the highest rate during the forecast period, owing to rise in need of data encryption services among the banks for identifying, assessing, and controlling threats of an organization.

Region-wise, the banking encryption software market share was dominated by North America in 2020, and is expected to retain its position during the forecast period. This is attributed to increase in demand of encryption software among banks across the U.S. and Canada to protect financial transactions data from theft and cyber-attacks. However, Asia-Pacific is expected to witness significant growth rate during the forecast period, owing to rise in cyber-attacks, identity theft, on-premise theft and other types of theft on banking sectors across developing nations such as China and India.

The outbreak of COVID-19 is anticipated to have a significant impact on the growth of the banking encryption software market revenue. Various banks are majorly hit by lockdown imposed in many countries, and the spending on encryption software by end users is expected to increase during this pandemic. This is attributed to increase in awareness among the banks and financial institution towards for offering secured banking service. Furthermore, rise in adoption of work form culture across banking sector have led banking sector to protect customer information from cyber-attacks owing to which there is an increase in adoption of banking encryption software across different industries.

The report focuses on the growth prospects, restraints, and trends of global banking encryption software market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on global banking encryption software industry.

Key Findings Of The Study

• By component, the software segment accounted major for the banking encryption software market share in 2020.
• By region, North America generated the highest revenue in 2020.
• By enterprise size, the large enterprises segment generated the highest revenue in 2020.

The key players operating in the global banking encryption software market include Broadcom, ESET, IbM Corporation, Intel Corporation, McAfee, LLC, Microsoft Corporation, Sophos Ltd., Thales Group, Trend Micro Incorporated and WinMagic. These players have adopted various strategies to increase their market penetration and strengthen their foothold in the banking encryption software industry.