Encryption Software Market Statistics: 2030
The global encryption software market was valued at $ 9,434.76 million in 2020, and is projected to reach $42,267.99 million by 2030, growing at a CAGR of 16.5% from 2021 to 2030.
Encryption software is an application used by organizations to protect their data while sharing it from one remote location to another. The key objective of the encryption software is to improve data security from unauthorized users. In addition, increase in number of organizations across the globe use encryption to address their growing concerns of data safety and data privacy compliance regulations.
Surge in complexity, data breaches, and increase in compliance regulation among organizations drive the growth of the encryption software market share. In addition, surge in adoption of bring your own device (BYOD) and increase in mobility fuel the growth of the market. However, lack of awareness about encryption software and limited use of encrypted device in some countries hamper the growth of the encryption software market share. Conversely, rise in demand for cloud-based encryption software is expected to provide lucrative opportunities for the growth of the market. For instance, in March 2020, Zettaset, Inc. launched software-defined (SD) XCrypt Kubernetes Encryption that enables compliance with enhanced data protection. XCrypt Kubernetes Encryption will enable businesses to safeguard their sensitive data in the emerging environments.
The communication encryption segment is expected to augment significant share during the forecast period. Communication encryption is safe, and even if they get stolen or misplaced, the access to their contents remains limited to authorized users, which drives the growth of this segment. However, the cloud encryption segment is expected to grow at the highest rate during the forecast period, owing to the adoption of cloud encryption by various industries such as banking, financial services, and insurance (BFSI), IT and telecom, and retail, driving the growth of the market in this segment. For instance, in May 2020, Zoom Video Communications, Inc. acquired Keybase, an encryption technology company to safeguard its video conferencing solutions and boost productivity.
The report focuses on the growth prospects, restraints, and trends of the encryption software industry. 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 the encryption software market.
The encryption software market is segmented on the basis of component, deployment model, enterprise size, function, industry vertical, and region. Depending on component, the encryption software market is bifurcated into software and service. According to deployment model, it is segregated into on-premise and cloud. As per enterprise size, it is divided into large enterprises and small-and medium-sized enterprises (SMEs). By function, the market is classified into disk encryption, communication encryption, file/folder encryption, and cloud encryption. On the basis of industry vertical, it is divided into banking, financial services, and insurance (BFSI), IT/telecom, government & public, retail, healthcare, aerospace & defense, media & entertainment, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the encryption software market analysis are Amazon Web Services, Inc. (AWS), Check Point Software Technologies, Cisco System, Inc., F-Secure, Fortinet, Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, Palo Alto Networks, Inc., and Trend Micro Incorporated.
Software segment accounted for the highest market share in 2020.
COVID-19 impact analysis
Due to COVID-19, adopting quick digital transformation methods has increased the volume of data stored in the clouds, which has resulted in other challenges such as performance, availability, and security, necessitating the use of encryption software solutions and services. Moreover, Organizations are increasingly focusing on centrally controlling different cloud resources as a result of COVID-19. As a result, data security is becoming increasingly important. During the pandemic, the increasing usage of byod and the presence of regulatory compliances would fuel the growth of the encryption software market and with the majority of firms still using work from home and hybrid work patterns, demand for encryption software for security assessments is likely to rise even more globally for threat intelligence.
Top Impacting Factors
Increase in Compliance Regulations
Stringent government and state regulations on data privacy and compliance require the enterprises to strengthen their data security measures. With increase in number of stringent regulations, organizations are adopting various data security technologies to ensure that sensitive data of customers as well as employees is protected at all times. Furthermore, the developed regions such as North America and Europe already have federal level regulations requiring mandatory compliance with data privacy laws. Developing regions such as Asia-Pacific and LAMEA enact and implement more concrete data protection legislations. For instance, some of the prominent data breach notification laws in the U.S. include Health Insurance Portability and Accountability (HIPAA)and Health Information Technology for Economic and Clinical Health Act (HITECH). Similarly, the European Union (EU) Data Protection Directive lays down the framework and the guidelines for data privacy and protection, driving the growth of the encryption software market.
Disk Encryption segment accounted for the highest market share in 2020.
Increase in Number of Complexity and Data Breaches
The frequency of data breaches is gradually increasing. breaches have not only increased in number but also in complexity. There is no industry or country which has not reported increase in the number of data breaches year over year.
It is not only the number that drives the encryption software market growth but also is the emerging complexity of threats, which compels organizations to implement more comprehensive, secure, and reliable security technology. Thus, to safeguard the sensitive data from increased sophistication and complexity of attacks, organizations are increasingly adopting encryption software.
Asia-Pacific would exhibit the highest CAGR of 19.8% during 2021-2030
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global encryption software market forecast along with the current & future encryption software market trends to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the global encryption software market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the encryption software industry.
- The quantitative analysis of the market for the period 2021–2030 is provided to determine the encryption software market size.
Encryption Software Market Report Highlights
By Deployment Model
By Enterprise Size
By Industry Vertical
By Key Market Players
The adoption of encryption software has increased over time due to rise in adoption of cloud and virtualization in the IT industry and evolving supportive government regulations across the globe. In addition, the ability of software to protect confidentiality of digital data stored on computer systems or transmitted over the internet is increasing its popularity among end users. Furthermore, many small and medium size enterprises are adopting cloud-based encryption software to ensure that organization data is not accessed by any unauthorized user.
According to CXOs of leading companies, increase in economic strength of developing nations such as China and India is expected to provide lucrative opportunities for the market growth. North America is expected to dominate the market during the forecast period. Moreover, emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities during the forecast period. Global players focus toward product development and increase their geographical presence, owing to growth in competition among local vendors, in terms of features, quality, and price. In addition, these players are adopting various business strategies to enhance their product offerings and strengthen their foothold in the market. For instance, in May 2018, IBM Corporation collaborated with Cisco System Inc. to integrate its security suite into Cisco’s security products for faster as well as more accurate threat detection and response. The collaboration is expected to improve product interaction, better service integration, and enhance threat intelligence.