Digital Vault Market Expected to Reach $2.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Digital Vault Market," The digital vault market was valued at $743.80 million in 2021, and is estimated to reach $2.9 billion by 2031, growing at a CAGR of 14.2% from 2022 to 2031. Digital vaults are safe online platforms that offer organizations and businesses encrypted online storage options and security to store, share, and send files securely.

Digital vaults are highly secured digital platforms that can collect and store your valuable documents such as photos, videos, bank information, audio files, and others online with the highest security standards.  Also, estate planning documents, username & passwords, cryptocurrencies, membership details can be stored online with the help of digital vaults. Online digital vaults for sensitive and valuable electronic files are the future's safe deposit boxes.

Digital vaults differ from cloud storage options as these vaults offer bank-level security due to which the users can reliably store their sensitive information. The digital vault provides advantages such as efficient document organization, management, and sharing, control and protection of sensitive data, scalability, and cost-effectiveness. The digital vaults offer 256-bit AES encryption with two-factor authentication that meets the highest encryption standards. These attributes are estimated to fuel the digital vault market share in the upcoming years.

Advanced technologies including artificial intelligence, the Internet of Things, cloud computing, and network analytics are critical in expanding the digital vault market size in the upcoming years. Although digital vaults are highly secure, services offered by the digital vault providers may differ which is estimated to restrain the digital vault market demand during the forecast period. For instance, Everplans, one of the popular digital vault service provider, have repeated sharing prompts that may not be useful for the users. This is because whenever the user adds a new item in digital vault, Everplans prompts the user to select with whom they want to share the data. Although this is a small issue, it can be tiresome for the user to choose with whom they want to share their data, every time when it is uploaded.

The growing adoption of digital vault software in the hospital sector is anticipated to generate excellent opportunities for the digital vault market growth. For instance, the use of digital vault in hospitals provides data confidentiality and security. These vaults offer anytime anywhere access to the data and can automate all workflow processes. Additionally, the digital vault can manage clinic appointments as well as it can manage OPD & IPD record for new & existing patients.

Furthermore, technical improvements and the widespread usage of digital technology are likely to generate huge prospects for digital vault industry growth. Opportunities for the market are created by a growing number of technological breakthroughs in smart lockers and an increase in demand from emerging regions. Some of the crucial features offered by the digital vault service providers include reminders about when the items in your digital vault are about to expire, free trial for some specific duration, easy navigation, multiple prompts, in-depth sharing options, maximum data control, privacy and others.

Rise in e-commerce, retail merchants, and use of smart lockers is estimated to boost the digital vault market forecast. The global digital vault market is segmented based on component, deployment, enterprise size, end use, and region. By component, it is classified into -solution and service. By deployment, it is classified into on premise and cloud, By enterprise size, it is classified into large enterprise and small and medium enterprise. By end use, the digital vault market is classified into BFSI, IT and telecom, manufacturing, government, healthcare, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the digital vault market report include Keeper Security, Multicert, Hitachi Limited, Fiserv, Microfocus, Johnson Controls International PLC, CyberArk Software Ltd., Microsoft, IBM, and Oracle Corporation.

The report offers a comprehensive digital vault market analysis by studying the market trends by thoroughly studying different aspects of the market, including major segments, market statistics, market dynamics, regional market outlooks, investment opportunities, and top players working toward the growth of the market. Furthermore, the report sheds light on the present scenario and upcoming trends & developments that are contributing to the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are profiled in the report, along with Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of Covid-19 on the Global Digital Vault Industry

ü Almost every sector of society, individuals, and businesses have been touched by the COVID-19 epidemic; however, the telecom sector is playing a key role in supporting governments' digital infrastructure around the world. Healthcare, telecommunications, media and entertainment, utilities, and government institutions are all working around the clock to stabilize the situation and ensure that everyone has access to basic services

ü The COVID-19 outbreak has changed how people utilize digital technology and do business from home. To collaborate remotely, almost every organization nowadays uses remote networking. During the pandemic, this "new normal" working environment forced enterprises to migrate assets to the cloud and digital platforms while establishing suitable security measures such as network and perimeter protection, resulting in an increase in the number of data breaches

ü According to NBC, a data security breach in the Pandemic Unemployment Assistance program exposed 33,000 unemployed applicants in May 2020. This has demonstrated that simply securing data from hackers is insufficient. Hence, the demand for digital vaults that offers bank-level security with 256-bit AES encryption and two-factor authentication is increasing rapidly.  Owing to the above-mentioned factors, the demand for digital vault has increased rapidly during the COVID-19 pandemic

Key Findings of the Study

• Based on component, the solution sub-segment emerged as the global leader in 2021 and service sub-segment is anticipated to be the fastest growing sub-segment during the forecast period
• Based on the deployment, the cloud sub-segment is anticipated to be the fastest growing in the market
• Based on the enterprise size the small and medium enterprise sub-segment is expected to be the fastest growing
• Based on end use, the healthcare sub-segment is anticipated to be the fastest growing in the market during forecast period
• Based on region, the Asia-Pacific market registered the highest market share in 2021 and it is projected to show the fastest growth during the forecast period