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

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.