USD 10.9 billion
Encryption Software Market Size, Share, Growth Analysis, By Component(Software, Services [Professional Services (Support and maintenance services, Training and Education Services, Consulting Services)), By Application(Disk Encryption, File/Folder Encryption, Database Encryption, Communication Encryption), By Deployment Mode(On-premises, Cloud), By Organization Size(Small And Medium-sized Enterprises, Large Enterprises), By Vertical(Banking, Financial Services, and Insurance, Aerospace and Defense), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45F2067 |
Region:
Global |
Published Date: September, 2024
Pages:
157
|Tables:
147
|Figures:
78
Encryption Software Market Insights
Global Encryption Software Market size was valued at USD 11.20 billion in 2022 and is poised to grow from USD 12.89 billion in 2023 to USD 39.71 billion by 2031, growing at a CAGR of 15.10% during the forecast period (2024-2031).
The main growth driver for the global encryption software market is the rise in cyberattacks and data breaches and losses. Banks are at a huge risk of security breaches, since all that data that is being generated across digital channels offers no solutions that guarantee the security of this data. For instance, malware operations exposed the servers of India's largest bank, State Bank of India (SBI), holding 422 million clients' personal information. Therefore, banks, among other financial firms, should expect to use more encryption software. Some of the industry verticals that need to adhere to data protection regulations include the Payment Card Industry Data Security Standard (PCI DSS) and the Health Insurance Portability and Accountability Act (HIPAA). It has led to an increase in demand for encryption solutions across the globe. These data protection regulations, therefore, act as growth drivers for the market. Businesses are predicted to be more vulnerable to cyberattacks as the employees move out of offices to avoid viruses. The huge number of workforces migrating out from offices would undoubtedly bring in a sea change in the market and in turn, would spur on the demands for IT infrastructure and business cybersecurity protection. The security departments would face intense pressure to alter the IT systems and protocol to counter changing threats. The ransomware, phishing, and malware attacks have created an enormously high demand for encryption products and have been something of good news for the industry.
US Encryption Software Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Cloud
Fastest Growth
Cloud
Growth Rate
15.2% CAGR
Global Encryption Software Market ($ Bn)
Country Share for North America Region (%)
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Encryption Software Market Segmental Analysis
Global Encryption Software Market is segmented by Component, Application, application, end user and region. Based on Component, the market is segmented into Software, and Services. Based on Application, the market is segmented into Disk Encryption, File/Folder Encryption, Database Encryption, Communication Encryption, Cloud Encryption. Based on Deployment Mode, the market is segmented into On-premises, and Cloud. Based on Organization Size, the market is segmented into Small and Medium-sized Enterprises, and Large Enterprises. Based on Vertical, the market is segmented into Banking, Financial Services, and Insurance, Aerospace and Defense, Government and Public Utilities, IT and Telecommunications, Healthcare, Retail, Other Verticals. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Encryption Software Market Analysis by Component
The software segment dominated the encryption software market. This rapid growth of digital channels has generated humongous volumes of critical data, most of which is retained locally or cloud servers. Due to this increase in data volume, issues regarding data security and privacy have increased in exponential proportions. Consequently, encryption software has emerged as almost an essential commodity for companies interested in protecting their secret digital data and sensitive information. This segment growth in the areas above is quite evident in industries that employ protection of client information, such as banking and finance. The ability to comply with data protection laws and their escalating regulatory demands increases the need for encryption solutions, which have become unavoidable for business today.
The service segment of the encryption software market is expected to grow at the highest CAGR during the projection period. This growth is primarily because of the increasing adoption of encryption technology by SMBs who realize just how important it is to protect their sensitive data. Encrypting solutions are placed first since cyber-attacks become really advanced to minimize risks and ensure that sensitive data will not be compromised. Encryption also becomes more reachable with customized solutions made to counter the company's needs being confronted by the service providers. The attention to the service leads to the long-term market because of the sense of safety and data security and the boosted confidence of clients.
Encryption Software Market Analysis by Organization Size
The large enterprises segment had the largest market share in the encryption software market. This is due to the massive usage of cybersecurity solutions to protect private information. Strong encryption solutions are required for safeguarding sensitive data produced by large companies from cyber -attacks and illegal access. There is a growing need to have regulatory compliance due to an increased demand for advanced encryption methods to ensure data confidentiality and integrity. The need for strong encryption solutions keeps rising because these businesses realize that it's critical to safeguard their digital assets that will fortify their market positions.
The small and medium-sized enterprises segment is expected to achieve the highest CAGR over the outlook period in the encryption software market. This growth is due to the popularity of cloud-based encryption solutions, which are scalable, flexible, and easy to apply to small and medium-sized enterprises. These companies are aware that the data needs protection from intrusions and advancements as they move toward more cloud settings. Cloud-based encryption solutions are now more accessible and affordable so that small and medium-sized enterprises can utilize strong security measures without large expenditures. The current focus on data protection spurs significant market growth in the field of encryption, and it is no longer just big businesses but rather SMEs that are driving this growth.
Global Encryption Software Market By Component
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Encryption Software Market Regional Insights
North America led the encryption software market with the highest revenue share of 37.2% in the year 2023. The prime reason for leadership is the fact that a strong internet penetration rate is prevailing across the region which enables large-scale data collection and sharing. Businesses are increasingly relying on digital platforms to safeguard critical data, thus requesting very strong encryption solutions. In addition, North America has a flourishing market for IT and telecommunication companies hired by several large business houses and newest technology. Furthermore, strict governmental regulations and increasing awareness of information security increase the area's commitment to embracing advanced encryption technologies, thus perpetuating its leadership position in the market.
The Asia-Pacific encryption software market is expected to grow at the highest compound annual growth rate of 20.5% during the forecast period. This reason for tremendous growth increase in significant proportion can be contributed to the growing awareness of data security needs among enterprises that are otherwise facing inadequate storage capacity. Data loss and theft are increasingly becoming an issue mainly because cloud solutions for data management are being used by companies in this sector. Urgency with which sensitive data needs to be protected has further increased the need for encryption software. In addition, businesses in the encryption sector could witness tremendous growth due to the region's upsurge technological landscape and expanding security expenses in the sector.
Global Encryption Software Market By Geography
- Largest
- Fastest
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Encryption Software Market Dynamics
Encryption Software Market Drivers
Rising Cybersecurity Threats
- Data security has become one of the main concerns in recent times, and with the escalating cyber-attacks and data breaches in all businesses, encryption software is highly in demand. An organization must be using robust encryption solutions to safeguard sensitive data from unauthorized access and theft. Modern encryption solutions are the only way to guard data whether in transit or at rest due to the sophistication of cyber-attacks reaching an unprecedented level. Due to the growing need for better security measures on data, the encryption software market is on the rise as companies focus on protecting their digital assets to maintain regulatory compliance and consumer confidence.
Regulatory Compliance Norms
- Data protection regulations only increase in the shape of CCPA, GDPR, and HIPAA, meaning businesses are forced to look into encryption technology. In essence, compliance with those mandates means strict data security policies and practices, including the encryption of any sensitive information. Non survival implies steep penalties and damage to reputation. For this reason, companies are paying a premium for encryption software to ensure compliance. This helps to lower down their chances of lawsuits and loyalty towards data protection and confidentiality. The regulatory structure is a major drive for market growth.
Restraints
High Implementation Costs as a Restraining Factor
- High cost of implementation is one of the significant barriers against the Encryption Software market. As complete encryption systems would have considerable expenses, especially for SMEs, businesses may fail to save money for complete encryption systems. Such systems might have costs for hardware, software licensing, and ongoing maintenance. The uptake of encryption technology by some organizations may be deterred by cost burden, thereby limiting the industry's total growth. Especially in places with undeveloped IT, investment in cybersecurity is often given a low priority as the financial constraints are very huge.
Implementation Complexity
- Encryption software is very complex to implement, and its complexity can be a limiting factor to companies. To integrate these encryption technologies into the existing infrastructures, significant expertise, intensive training, and preparation are required to make sure that the encryption technologies work smoothly and effectively. Encryption measures can be complicated, and therefore it may discourage some companies from implementing it. Consequently, its implementation is bound to be slow and even face operational problems. The process becomes challenging because of the need for constant management and improvements, which discourages companies from adopting encryption technologies when they are predicted to required to secure data.
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Encryption Software Market Competitive Landscape
The encryption software market is relatively concentrated. At the fore of this sector are strong global players such as Thales, IBM, Microsoft, Broadcom Inc., and Sophos Ltd. These enterprises enjoy dominance due to their broad portfolio of products and loyal customer base. The strategic importance of innovation is at its highest by companies' leadership and especially when it is regarding the design of zero trust architecture and quantum-proof encryption. Future market trends, as witnessed today, will be driven by integrated security solutions that require encryption with other forms of cybersecurity measures. Even in the presence of giant corporations, smaller specialist suppliers play a significant role in niche markets or at specific locations because they can offer customized encryption solutions to specific industry requirements.
Encryption Software Market Top Player’s Company Profiles
- IBM (US)
- Microsoft (US)
- Broadcom (US)
- Sophos (UK)
- Thales (France)
- Trend Micro (Japan)
- Dell (US)
- Check Point (Israel)
- Micro Focus (UK)
- PKWARE (US)
- ESET (Slovakia)
- Boxcryptor (Germany)
- WinMagic (Canada)
- Cryptomathic (Denmark)
- Bitdefender (Romania)
- Stormshield (France)
- Cisco (US)
- HPE (Hewlett Packard Enterprise) (US)
- Bitglass (US)
- Baffle (US)
- Fortanix (US)
- Enveil (US)
- NordSecurity (Lithuania)
- PreVeil (US)
Encryption Software Market Recent Developments
- July 2024: Accenture and SandboxAQ expand its joint work to address the urgently required challenge of business data encryption with protection both from the risks that AI and quantum technologies could pose in the future and from the threats organizations face today. Their integrated solution strengthens security, reduces threats from outside the enterprise, and enhances observability for security beyond the protection of data.
- May 2024: SoftIron, the world's authentic leader in private cloud architecture, has agreed to enter a partnering deal with Arqit Quantum Inc., the global leader in quantum-safe encryption. Though moving more toward the military industry, the goal of the partnership is to make it easier for clients to migrate into quantum-safe cloud operations faster. In this regard, this will take its place among the leading offers of top-tier industries, with front-page listing in the SoftIron Partner Market.
- April 2024: Vertosoft, a leading independent software distributor, and Enveil, the pioneer of privacy-enhancing technology, specializes in protecting data in use, today announced a distribution agreement. According to terms agreed within this collaboration, Vertosoft has obtained exclusive distribution rights for Enveil's ZeroReveal software solutions with ambitions to further expand Enveil's public sector footprint and its newly yet untapped markets, with partners.
Encryption Software Key Market Trends
- Growth of Encryption Cloud-Based Solutions: The key development in the encryption software industry, in recent times, is the rapid growth in cloud-based encryption solutions. While the transition of many business data management and storage operations into cloud environments means that the need for encryption solutions to protect data in transit and at rest inside these platforms will continue to grow. Such cloud-based encryption solutions are attractive not only for small to large enterprises but also to any kind of business entity because they are affordable, flexible, and scalable. Above factors coupled with emerging pressure on data breaches and the need for robust security to protect sensitive data on the cloud are causing this trend.
- Integration of Machine Learning and AI: This is a new trend of integrating machine learning and artificial intelligence into the encryption tool for stronger data protection capabilities. The AI and ML enable real-time identification and response to threats since they can analyze data consumption patterns and detect anomalies. Furthermore, the automation of processes for encryption increases productivity with minimum possibilities of human mistakes. This is predicted to lead to an increase in using AI and ML for encryption solutions with changes in the data protection environment that come up with the look for more advanced security measures against increasingly advanced cyber-attacks by enterprises.
Encryption Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the encryption software market is anticipated to grow substantially due to increased cybersecurity risks and stringent compliance regulations. Every business in the industries is now immensely demanding strong encryption solutions that consider data protection with utmost seriousness than ever before. Even as the wave of cloud-based encryption continues to grow, moving with embracing new technologies like artificial intelligence and machine learning, future data security is changing amidst huddles such as high cost and complexity of implementation still prevalent. With an increasing number of firms coming to understand how important it is to safeguard sensitive information, the market for encryption software is bound to grow, encouraging innovation and general safety measures all over.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 11.20 billion |
| Market size value in 2031 | USD 39.71 billion |
| Growth Rate | 15.10% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Encryption Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Encryption Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Encryption Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Encryption Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Encryption Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Encryption Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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