"Smart Strategies, Giving Speed to your Growth Trajectory"
The global encryption software market size was valued at USD 8.82 billion in 2019 and is projected to reach USD 24.94 billion by 2027, exhibiting a CAGR of 14.1% during the forecast period.
Data security concerns are among the top trends owing to the data generated by Bring Your Own Device (BYOD) and the Internet of Things (IoT) among enterprises. The growth of the global market is primarily driven by an increase in cyberattacks, data breaches, and theft and losses in companies. Banks and financial companies are mainly exposed to security breaches due to the large data produced by digital channels and lack of data security solutions. For instance, in December 2019, State Bank of India (SBI), India’s largest bank’s servers were exposed to malware activities that exposed the data of its 422 million customers. Thus, the adoption of encryption software is expected to grow among banks and financial companies.
Several industry verticals including healthcare and BFSI need to comply with data protection regulations such as The Payment Card Industry Data Security Standard (PCI DSS), and Health Insurance Portability and Accountability Act (HIPAA) that have transitioned into increased demand for encryption solutions across the globe. As a result, data protection regulations drive the growth of the market.
Surging Demand for Encryption Solutions to Accelerate Growth amid COVID-19 Pandemic
As businesses shift from their physical office environment to remote working to curb the spread of virus, the risk of cyber-attacks may increase. Remote work at a major scale is likely to cause a significant impact on the market, thus, fueling the need for IT infrastructure and enterprise cybersecurity measures. This will place tremendous pressure on security departments to customize IT solutions, and change procedures to counter the evolving threats. The high demand for encryption tools owing to the increased malware attacks, phishing attacks, and ransomware attacks in the current situation will bode well for the market. For instance, in October 2020, Software AG, a software company headquartered in Germany faced a ransomware attack that elevated the internal system shut down and forced communications to go offline. Thus, demand for encryption solutions is likely to surge during the Covid-19 pandemic.
Request a Free sample to learn more about this report.
Increasing trend for Encryption Software for Data Security and Privacy to Incite Development
The increasing government as well as state data privacy regulations have required businesses to strengthen their data security measures. Businesses across all industry verticals are opting for various security options to ensure employee and customers sensitive data. Additionally, developed countries such as Europe and North America have mandatory data security regulations, developing countries from Asia Pacific and Latin America are implementing more concrete data privacy regulations. For instance, in December 2019, the Government of India introduced the Personal Data Protection Bill (PDPB), which would create a cross-segmental data protection framework. Furthermore, enterprises are moving towards technological advancements to strengthen their market position, resulting in increased deployment of encryption software globally.
Rising Incidences of Data Breaches to Spur Lucrative Business Opportunities
Incidences of data and security breaches have grown in recent years. For instance, in June 2020, Chartered Professional Accountants of Canada (CPA) witnessed a cyber-attack that led to the loss of personal information of over 329,000 stakeholders and members. Increasing data breaches across industry verticals have created an aggressive need for data protection policies and technologies that enable businesses to help store and secure critical data. Enterprises globally are opting for encryption software as a key defensive measure against data and security breaches. Cryptographic security controls cannot be compromised with ransomware thus keeps systems and databases safe. To enhance data security, encryption approaches like encryption and steganography are thus used, which in turn helps to deter cyber threats from breaching data. This is further expected to drive the encryption software market growth. Also, data generated by digital channels, cloud technology, and the internet of things (IoT) have increased, imposing a rising need for data privacy solutions.
Use of Pirated and Open-Source Encryption Solutions to Impede Market Growth
Encryption software growth is inhibited by some drawbacks, given efficient trends and opportunities for enterprises. Use of pirated and open-source platforms has increased in recent years, as they can be easily downloaded from the internet and other platforms. Despite threats associated with pirated software, some businesses are using pirated software for cost cutting purposes. This is likely to lead third parties and ransomware attacks on critical business data. Thus, continuing use of pirated encryption software is one of the major restraints that can hamper the market growth of the global market.
Software Segment to Augment the Market Growth
Based on the components, the market is segmented into software and services.
With growing digital channels, enterprises generate vast amounts of critical information that is stored in the cloud or on servers. Encryption software enables businesses to secure this information and protect the confidentiality of digital data. The growth of the segment is mainly attributed to the increasing deployment of encryption software among banks and financial firms.
The service segment is expected to grow at the highest CAGR during the forecast period owing to the rising penetration of encryption technologies among small and medium sized businesses to protect their critical data.
To know how our report can help streamline your business, Speak to Analyst
Disk Encryption Segment to Showcase Strong Growth
Based on application, the market is segmented into disk encryption, database encryption, cloud encryption, folder encryption, and others.
Disk encryption segment captured maximum share in the global market. Conventionally, enterprises across several industry verticals have been using disks and drives to save their business data. Thus, these disks are highly subjected to malware activities and data thefts. Therefore, the demand for disk encryption software has grown in recent years.
The cloud encryption segment is expected to grow at a higher CAGR during the forecast period. Data storage is one of the major needs of various end user verticals including retail, healthcare, BFSI, among others. With more companies transitioning into clouds, the market for cloud encryption solutions is expected to grow due to its versatility in terms of scalability and user policies.
Increasing Acceptance of Encryption Technology among Large Enterprise to Aid Growth
Based on enterprise size, the market is segmented into large enterprises and small and medium-sized enterprises (SMEs).
The large enterprises segment held the largest market share in 2019. The growth of this segment is mainly dominated by the increased adoption of cybersecurity technologies to ensure data privacy. Large enterprises generate vast amounts of data thus, demand for encryption solutions has been increased to save data among large enterprises.
Whereas, small enterprises are expected to grow at the highest CAGR over the forecast period. The growth is mainly owing to the increased adoption of cloud-based encryption software.
Increasing Acceptance of Encryption Technology among Large Enterprise to Aid Growth
Based on the deployment model, the market is segmented into On-Premises and Cloud.
The widespread adoption of the internet of things (IoT) coupled with the growth of digital channels such as social media has enhanced business functioning and data collected through endpoints. This is estimated to fuel the demand for on-premises deployment of encryption solutions among industry verticals.
The adoption of cloud-based encryption software is expected to grow over the forecast period mainly owing to its efficient features and benefits such as control, data management, and cost-effectiveness.
BFSI Segment to Capture the Largest Market Share
Based on industry vertical, the market is segmented into it and telecommunication, banking, finance, security and insurance (BFSI), healthcare and life sciences, manufacturing, retail, government, energy and utilities, others.
The BFSI segment accounted for the largest market share in the global encryption software market. Banks and financial firms always store critical data such as customer information, financial details among others. This information is highly subjective to data breaches and banks can have to pay large dues in case of any such scenarios. The industry's complex nature and increasing numbers of cyber threats raise the need to secure confidential financial data from full returns and low-risk breaches. As banking organizations gradually embrace cloud technologies, encryption technologies will be at the forefront to safeguard information and reduce possibilities of data breaches.
The IT and telecommunication segment is likely to dominate the market during the forecast period. The growth of the segment is primarily driven by the adoption of security standards to safeguard business critical data.
North America Encryption Software Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Based on the region, the market has been studied across five foremost regions namely North America, South America, Europe, Middle East and Africa, and Asia Pacific.
North America is expected to capture the maximum share in the global market in 2019. The adoption of encryption solutions is likely to increase in the region with the increasing penetration of the internet. Also, the growing mobile wireless network has expanded data protection insecurity making encryption technology an important and essential aspect of every organization across the region. According to Interstate Technology & Regulatory Council (ITRC), the estimated number of data breaches witnessed by enterprises in the United States has grown from 1473 breaches in 2019 to 614 breaches in 2013. Furthermore, the increasing need to adhere to stringent regulations coupled with the presence of key encryption software vendors is expected to fuel regional market growth.
The presence of the well-established IT & Telecom sector in the area and the production of massive data that must be secured have made Europe the major market share holder. In addition, there is projected to be a growing demand for encryption solutions in this area over the coming years due to the use of the Internet and personal computers in the private sector.
Asia Pacific is expected to grow at the highest market share during the forecast period. The Asia Pacific market is expected to grow in the next few years due to the shortage of data storage technologies that will insist enterprises store their data on the cloud server. This raises the probability of data loss and theft and escalating the demand for encryption technology in the region. Regional demand for encryption applications has been driven by the growing implementation of BYOD, cloud computing, and IoT. In countries like China and India, the market growth is driven by the growth of retail business coupled with rapid changes in the ICT sector in the coming years.
To know how our report can help streamline your business, Speak to Analyst
Middle east and Africa and Latin America is expected to showcase strong growth during the forecast period. The growth is mainly attributed to increased adherence to data privacy and theft regulations.
Enhanced Product Offering by Key Players to Serve Organizational Needs
Market-leading players such as Thales Group, IBP Corporation, Microsoft Corporation, among others are launching innovative offerings owing to the promising developments in advanced technologies. On the other hand, the other players are entering into strategic partnerships with other competitors to strengthen their market position and achieve strong brand advertising. For instance,
An Infographic Representation of Encryption Software Market
To get information on various segments, share your queries with us
The encryption software market research report offers qualitative and quantitative insights on the product and a detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and the competitive landscape.
Key insights provided in the report are the adoption trends of encryption software by individual segments, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, Porter’s five forces analysis, and business strategies of leading market players, key industry trends, macro, and micro-economic indicators.
Value (USD billion)
Component; Application; Enterprise Size; Deployment Model; Industry Vertical; and Geography
By Enterprise Size
By Deployment Model
By Industry Vertical
Fortune Business Insights says that the global market size was USD 8.82 billion in 2019 and is projected to reach USD 24.94 billion by 2027.
In 2019, the North American market stood at USD 3.20 billion.
Growing at a CAGR of 14.1%, the market will exhibit steady growth in the forecast period (2020-2027).
The disk encryption segment is expected to be the leading segment in this market during the forecast period.
The rising Incidence of data breaches is a key factor driving the market
IBM Corporation, Symantec Corporation, Thales Group, Microsoft Corporation, Trend Micro Incorporated, Dell Technologies, Inc., Sophos Ltd., Check Point Software Technologies are some of the major players in the global market.
North America dominated the market share in 2019.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry