Encryption Software Market Outlook - 2022
The global encryption software market size is expected to reach $2,663 million by 2022, growing at a CAGR of 15.0% from 2017 to 2022. Encryption software encrypts, and decrypts data stored in the files/folders, hard drives, removable media as well as the data travelling over the internet network through emails. All the encryption software use an algorithm to convert the data into a meaningless cipher text or encrypted text, which can only be converted to meaningful text using key; symmetric key (single key), or asymmetric key (pair of keys). Enterprises use encryption tools to ensure the security of their sensitive data even in the event of a breach.
Encryption software market covers the different types of software‐based encryption technologies used for protecting the data stored in any computing device (data-at-rest) and the data that is being transmitted over IP (data-in-transit). The report also focuses on the growth prospects, restraints, and encryption software market trends.
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Rise in number and complexity of data breaches and growth in compliance regulations are the key factors that drive the growth of the encryption software market. In addition, increasing adoption of new technologies such as mobility, cloud and virtualization, have fueled the market growth. Furthermore, increase in demand for cloud data encryption is anticipated to offer significant opportunities for this market.
Report offers encryption software market forecast for the period from 2017 to 2022. The study provides Porter’s five forces analysis of the market 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 growth of encryption software market.
This report covers full disk encryption, and file level encryption, which are prominent technologies used for data protection. Full disk and file-level encryption are covered under encryption software for data-at-rest. Encryption software market report, on a whole, only features information on various types of encryption software along with their adoption in different industry verticals.
The market is segmented by usage, industry verticals, and region. Based on usage, it is sub-segmented into data-at-rest and data-in-transit. In 2016, data-at-rest segment accounted for the highest encryption software market share. However, data-in-transit sub-segment is anticipated to exhibit the highest growth during the forecast period.
Based on industry verticals, the market is segmented into financial sector, government, healthcare, and others. In 2016, the financial sector dominated the encryption software industry, in terms of revenue, and is projected to continue leading the encryption software market share throughout the forecast period.
The regions considered in the market report are North America, Europe, Asia-Pacific, and LAMEA. Presently, North America dominates the world encryption software market, followed by Europe. North America is expected to continue to dominate the world market during, 2014-2022 owing to the boom in number of high profile data breaches, stringent data privacy compliance regulations and the increase in adoption of technologies, specifically cloud and mobility.
Top impacting factors
Increased compliance regulations, and growth in number and complexity of data breaches are the key factors that drive the encryption software market growth. In addition, increase in adoption of new technologies such as mobility, cloud and virtualization, have also fueled the growth of this market. Furthermore, increase in demand for cloud data encryption is anticipated to offer significant market opportunity. However, regulatory restrictions on crypto software are anticipated to hamper the growth of this market.
Increased compliance regulations
The increasing government as well as state regulations on data privacy and compliance requires the enterprises to tighten their data security measures. With the growing number of stringent regulations, the organizations need to put in place effective data security technologies, to abide by the applicable laws and ensure that sensitive data or the personally identifiable data (PII) pertaining to customers, employees and the company is protected at all times. While developed regions such as North America and Europe, already have federal level regulations requiring mandatory compliance with data privacy laws, developing geographies such as Asia-Pacific and LAMEA, are enacting and implementing more concrete data protection legislations, which is driving the demand for the encryption software market.
Increased adoption of cloud and virtualization
Cloud is growing exponentially, with a large number of organizations already using cloud or planning to do the same. It has been seen that while startups or small companies are quicker to adopt cloud, large enterprises have been more cautious to migrate to cloud. the adoption of cloud is increasing at a fast pace due to the obvious benefits of flexibility and costs it offers over the legacy systems. This increased adoption is expected to drive the demand for encryption software as it enables safeguarding the data both at rest and in transit, allows to leverage the benefits of cloud ensuring data privacy. It can also aid in regaining control over the data even after the data has left the organization’s premises. Owing to these factors, encryption software market is expected to grow at a higher pace during the forecast period.
Regulatory restrictions on crypto software
Though a number of increasing state and national level regulations are calling for encryption, the same is strongly regulated in most of the major countries. Encryption is considered as a dual use technology as it has both commercial (associated with businesses) as well as military value (arising from the misuse by terrorists groups and criminals for reasons of endangering national security). Restrictions vary in every country. Some countries prohibit the use of encryption within the country, while others impose restrictions on either import or export of cryptographic technology data. Therefore, such restrictions on crypto software is restraining the encryption software market.
Increase in demand for cloud data encryption
There has been an increasing demand for encrypting the data in cloud. With the rapid rise in adoption of cloud services in all the sectors, the organizations are now looking at encryption solutions that will ensure data security as well as compliance with the data privacy regulations for their data stored in cloud. Moreover, encryption solutions from cloud security brokers i.e. the cloud service providers encrypting the customer data are anticipated to witness highest interest, which is further expected to provide lucrative opportunities for this market.
- The study provides an in-depth encryption software market analysis with current and future trends to elucidate the imminent investment pockets.
- Current and future trends are outlined to determine the overall attractiveness and to single out profitable trends to gain a stronger foothold in the market
- The report provides information regarding key drivers, restraints, impact analysis, and encryption software market opportunity.
- Quantitative analysis of the current market and estimations through 2017-2022 are provided to highlight the financial caliber of the market.
- Porters five forces model and SWOT analysis of the industry illustrate the potency of the buyers & suppliers participating in the encryption software market.
- Value chain analysis in the report provides a clear understanding of the roles of stakeholders involved in the value chain.
Encryption Software Market Key Segments:
- Encryption for Data-at-rest
- Full Disc Encryption (FDE)
- File Level Encryption (FLE)
- Encryption for Data-in-transit
- Financial Sector
- Public Sector
- Others (Majorly Retail)
- North America
Key Market Players Profiled
- Symantec Corporation
- Sophos Holdings Ltd.
- Check Point Software Technologies
- Trend Micro
Other Companies Mentioned in the Report
Other companies mentioned in the report include key players of encryption software market such as Google, Facebook, Microsoft, Apple, Verizon, Yahoo, Silent Circle, Per Damballa, Amazon, SurfRight, JPMorgan, Jafco Ventures, CipherCloud, PerspecSys and San Jose, WhatsApp, Open Whisper Systems, Geeksphone, WhisperSystems, Cyberoam Technologies, ForeScout Technologies, Stonesoft Oyj, KoolSpan, and LiveOffice.