"The need to safeguard corporate data is driving the encryption software market"
By 2024, the global Encryption Software Market size is estimated to reach USD 8,402.9 million, which is growing at a CAGR of more than 14% over the forecast period. With the growth in the trends like the Internet of Things (IoT) and Bring Your Device (BYOD), concerns about data security are on an all-time high. These trends have further caused cyber-attacks, thefts, data breaches, and commercial espionage which will drive the demand for protective software.
Developments in the terms of hardware and software in the fields of mobile technology and their increased penetration are further estimated to fuel the demand over the forecast period. The inclination of firms towards cloud computing, demand for sensitive data protection, high data volume requirements has led to an increase in the demand for encryption software.
Verticals such as BFSI and healthcare are required to comply with stringent regulations set by authorities such as the PCI, HIPPA, and DSS who have formulated data security solutions that have led to the application of security solutions all over the world. Intellectual properties of enterprises and users have become prone to infringement and theft on account of the increase in usage of the internet and rapid digitization. These risks make companies implement security solutions. The protection provided to the sensitive data and intellectual properties of enterprises is expected to drive the market over the next few years.
However, implementation of such solutions which are fairly expensive can cause challenges in the fields of budgets. Furthermore, the application of these provisions is considerably time-consuming and complex, though the kind of security and safety provided balance out the challenges such as time consumption.
Due to the well-established telecom and IT sector, North America consumed a major share. The generation of huge amounts of data that needs to be protected was the major reason behind this hiked consumption. Furthermore, increased usage of personal computers and the internet are expected to raise the demand for encryption software over the forecast period.
"Cloud encryption to witness substantial growth over the forecast period"
By 2024, the segment that is expected to witness growth at a CAGR of 19% is the cloud computing segment. Data storage is a major resource of information for industries such as retail, finance, and banking has caused them to incline toward cloud computing. The flexibility and scalability offered by these solutions are the main reasons for the adoption of encryption software.
At the same time with the increase in adoption of cloud computing, the need to protect the data has also escalated. Additionally, the propagation of expert data analytics has caused a rise in the rate of internet usage leading to increased use of cloud encryption software. The regulated standards are set owing to the increase in the rate of growing cyber-attacks and mobile theft.
"BFSI dominated the application segment"
BFSI segment in 2015 captured considerable market share consuming over $600 million and is expected to grow at a CAGR of 15 % by 2024. The sudden spike in the number of cyber-attacks and the ever-changing nature of the industry has resulted in an increase in demand for the security of financial data that is sensitive to theft and infringements by lowering risks and maximizing returns. The growth in the adoption of cloud technologies in banking sector is expected to drive the market for the next few years.
Traditional data transfer techniques such as DVDs, email, and other data transfer techniques are adopted by banks for transferring the data which are highly risky keeping in mind the level at which the infringers operate. An increase in demand for such software is expected due to the implementation of such techniques. Furthermore, the rise in dependency on the online method of banking and the need to protect the transactions will fuel the need for encryption software over the forecast period.
"The Asia Pacific to experience robust growth; China exhibits growth potential"
In 2015, the Asia-Pacific region accounted for $500 million which is expected to increase due to organizations shifting to cloud storage facilities due to their incapacity to develop data storage infrastructures, which will surely increase the risks of losses of data, infringements, and thefts escalating the demand. Countries like China and India have a tremendous rate of the development manufacturing sector as well as IT and telecom sector which will drive the market in the forecast period.
"The encryption software market fragmented in nature"
The key players in the market are firms like Microsoft Corporation, Cisco Systems, Symantec, EMC Corporation, Bloombase, Sophos, IBM Corporation, Intel Security, and Trend Micro. These firms offer solutions to both large-scale businesses and small & medium-scale businesses at the same time focusing on the research and development of newer techniques of cryptography to provide optimum solutions to the clients.
Deployment Outlook (Revenue, USD Million, 2013 - 2024
Application Outlook (Revenue, USD Million, 2013 - 2024)
• Disk Encryption
• File/Folder Encryption
• Database Encryption
• Web Communication Encryption
• Network Traffic Encryption
• Cloud Encryption
End-Use Outlook (Revenue, USD Million, 2013 - 2024)
• Government & Public Administration
• Defense & Aerospace
Regional Outlook (Revenue, USD Million, 2013 - 2024)
• North America
• the U.S.
• the UK
• the Asia Pacific
• Latin America
• Middle East & Africa
Research Support Specialist, USA
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