The global encryption software market size is anticipated to reach USD 8,402.9 million by 2024, growing at a CAGR exceeding 14% from 2018 to 2024. Concerns regarding data security are on a rise with the growing trend of Bring Your Own Device (BYOD) and Internet of Things (IoT), among enterprises. This has further resulted in increased data breaches, commercial espionage, cyber-attacks, and theft & loss in companies, which is expected to drive the demand.
Recent developments in the mobile technology in terms of software and hardware, their dissemination among businesses, and the increasing penetration of smartphones are further projected to spur the demand over the coming years. The increase in the number of enterprises moving toward cloud computing, combined with the high data volumes, demand the protection of sensitive data, thus raising the deployment for encryption software.
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Various industry verticals, including healthcare and BFSI, have to comply with stringent regulations, such as HIPPA, DSS, and PCI, which have mandated the implementation of data security solution. This has led to the adoption of these security solutions across the globe. Furthermore, on account of rapid digitization and increased usage of the Internet, the intellectual property of the enterprises, and users alike has become susceptible to theft and infringement. These security risks require companies to implement solutions to safeguard the data. Encryption software enables the organizations to protect their intellectual property and other sensitive data, which is expected to fuel growth over the forecast period.
Although these solutions offer substantial benefits, their adoption may experience challenges primarily in terms of budget. This is because its purchase and implementation require a considerable amount of money. Additionally, the deployment options for these solutions are complex and time-consuming; however, the benefits offered by them often outweigh the challenges pertaining to intricacy and the time associated with their deployment. North America accounted for the major market share due to the presence of the well-established IT & telecom sector in the region and the generation of huge amount of data that needs to be protected. Moreover, the increasing concerns about security, owing to the utilization of the Internet and personal computers in the private sector, are expected to escalate the demand in this region over the coming years.
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“Cloud-based encryption solutions to witness bullish growth”
The on-premise segment emerged as a dominant deployment segment, accounting for more than 60.0% of the overall revenue in 2016. However, the cloud-based segment is estimated to grow substantially over the forecast period at a CAGR exceeding 15% owing to expanding cloud infrastructure and several companies adopting cloud storage solutions. Also, developments in the IT & telecom sector, such as the emergence of BYOD and CYOD, are expected to significantly impact the growth over the coming years. The establishment of new businesses in the emerging economies is further expected to propel the demand for cloud-based solutions.
“Cloud encryption to witness substantial growth over the forecast period”The cloud solutions segment is expected to witness growth at a CAGR exceeding 19% by 2024. Data storage is one of the major resources for various industries such as banking & financial, retail, and others to move to the cloud. This is due to the flexibility it offers in terms of scalability and usage policy.However, the adoption of cloud has resulted in the need to protect the crucial data. Furthermore, the proliferation of big data analytics has led to the increased usage of the cloud encryption software by major internet services to ensure the privacy of their users’ data. The growing cyber-attacks and mobile theft have led to mandated regulatory standards related to data transfer and its security.
“BFSI dominated the application segment”
The BFSI segment captured a sizeable market share in 2018 accounting for over USD 600.0 million and is anticipated to grow at a CAGR exceeding 15% by 2024. The increasing number of cyber-attacks and the dynamic nature of security industry have demanded the protection of sensitive financial data from breaches with minimum risk and maximum returns. As the banking institutions move towards cloud, the segment showcases a higher potential for the deployment of these security solutions.
Banks traditionally follow techniques such as DVDs, email, and others for the data transfer, which pose a high risk of data breach, thereby increasing the growth opportunities in the BFSI industry. Furthermore, high dependency on online transactions and the need to safeguard the same are anticipated to increase demand in the BFSI sector over the coming years.
“Asia Pacific to experience robust growth; China exhibits growth potential”
Asia Pacific was valued at over USD 500.0 million in 2018, which is anticipated to increase over the next few years owing to the lack of storage infrastructure prompting the organizations to store information on the cloud. This increases the risk of data loss and thefts, escalating the market demand. Moreover, the increasing penetration of BYOD, cloud services, and IoT has spurred the industry demand. Rapid developments in the manufacturing sector in countries such as China and India as well as the growing IT & telecom and retail sectors are expected to drive the growth over the coming years.
“The encryption software market fragmented in nature”
The industry is fragmented in nature. The key players include Symantec, Microsoft Corporation, Bloombase, Cisco Systems, EMC Corporation, Check Point Software Technologies, IBM Corporation, Intel Security, Trend Micro, and Sophos. These players offer data protection solutions to the Small & Medium Businesses (SBMs) and enterprises. Furthermore, the companies also focus on the development of innovative techniques related to the advanced cryptography to provide robust data security.
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