Global Encryption Software Market

Encryption Software Market Size, Share, Growth Analysis, By Component (Software, Services), By Application (Database Encryption, Cloud Encryption), By Deployment Mode (On-premises, Cloud), By Organization Size (Small and Medium-sized Enterprises, Large Enterprises), By Vertical (IT and Telecommunications, 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.

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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 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. '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)'

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. 

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. 

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. 

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Global Encryption Software Market

Report ID: SQMIG45F2067

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