Encryption Software Market Size & Share

Global Encryption Software Sector: Growth Drivers and Challenges

Growth Drivers

Increasing Regulatory Standards for Security in End-User Sectors – Government imposed regulatory standards for the security of data privacy and compliance to improve the security measures. There has been a rising encouragement to use encryption software solutions in organizations to enhance the security for consumers by preventing cyber threats, and providing secure data transfer facilities. As per the estimations, by the end of 2024, more than 70% of the population across the world will be provided with personal data security under new privacy regulations.
Rising Adoption of the Internet owing to the Digitalization – The rising usage of smartphones, and the adoption of social media and other online applications for educational, job, financial transactions, and entertainment purposes is driving the encryption software market growth. According to the reports, more than 5 billion population worldwide are using the internet as of 2023 which contributed to over 64% of the world’s population.
Growing Unlawful Access due to Lack of Data Security Solutions – The unauthorized access to data storage is growing day by day owing to misuse of privileged access by employees, the presence of malware, weak passwords, rising hacking skills, and accidental access grants.

Challenges

Easy Availability of Pirated Software and Open-Source Encryption Solutions – The increasing use of pirated encryption software by people as they are free and easy to access. These pirated encryptions are not strong enough to prevent the breach and are mostly fake parties trying to gain access to the systems through websites.
High Cost of Encryption Software Solutions
Dearth of Experienced Professionals

Encryption Software Segmentation

Component (Software, Services)

The software segment will have a significant market share during 2023-2035, due to rising trend of the Internet of Things (IoT), Bring Your Own Device (BYOD), and Internet of Everything (IoE) among enterprises.

In addition, there has been a rising use of cloud-based encryption software solutions to protect the physical intrusions on the information of corporation assets either by cybercrime groups or any employee. Increasing infringement and theft of huge data stored in the company’s cloud server can lead to financial loss if not protected by encryption software.

Industry Vertical (IT, Telecommunications, BFSI, Healthcare & Life Sciences, Manufacturing, Retail, Government, Energy, & Utilities)

The BFSI segment in the encryption software market is anticipated to witness noteworthy growth during the forecast period. The need for data security in the banking, finance, security, and insurance companies is much more compared to other sectors as they withhold confidential and sensitive data of all the customers that cannot be revealed at any cost.

Our in-depth analysis of the market includes the following segments:

Component	Software Services
Application	Disk Encryption Database Encryption Cloud Encryption Folder Encryption
Industry Vertical	IT Telecommunications BFSI Healthcare and Life Sciences Manufacturing Retail Government Energy Utilities
Deployment Model	On-Premises Cloud
Enterprise Size	Large Sized Enterprises Small Sized Enterprises Medium-Sized Enterprises

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Encryption Software Industry - Regional Synopsis

APAC Market Forecast

The Asia Pacific region is expected to dominate the market share till 2035. There has been a surging use of data storage technologies by organizations in the region with increasing concern about cyber security. Further, the inclusion of hypertext transfer protocol secure (HTTPS) in the software applications such as Facebook, Twitter, Snapchat, Instagram, and others is propelling the market expansion.

Rising cyber-attacks in Japan are also boosting the demand for encryption software in the APAC region. As of 2021 reports, 230 people were arrested for about 430 unauthorized security breaches in Japan. Recently, Japanese researchers developed a new data encryption method to handle encrypted data by combining homomorphic encryption and secret sharing.

North American Market Statistics

The North America encryption software market is slated to grow at substantial CAGR through 2035. The increasing development in the field of IT and telecom sectors, and the growing investment by many small, medium, and large-scale enterprises in the IT sector will impel the market revenue. The production of huge data by these organizations and rising number of data centers to store this data is further driving the market demand.

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Companies dominating the Encryption Software Landscape

Amazon Web Services, Inc. (AWS)
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
IBM Corporation
Microsoft Corporation
Check Point Software Technologies
F-Secure
Fortinet, Inc.
Oracle Corporation
Cisco System, Inc.
Palo Alto Networks, Inc.
Trend Micro Incorporated

In The News

IBM Corporation revealed the End-to-End Quantum-Safe Technology a new software tool to protect the government and private business data with deep security expertise developed as an end-to-end solution. IBM developed this new technology to protect the risk of security in quantum systems by including cryptography, quantum computing, and critical infrastructure experience.
Amazon Web Services, Inc. started Amazon Simple Storage Service (Amazon S3) encrypts all new objects with security as its prime priority. The Amazon S3 is automatically applied to server-side encryption and handled all the encryption, and decryption, and manages everything in a transparent manner.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the encryption software market?

Ans: Increasing adoption of the internet and rising digitalization, and growing regulatory standards for security are the major factors driving the market growth.

2) What would be the CAGR of the encryption software market over the forecast period?

Ans: The market size of encryption software is anticipated to attain a CAGR of ~15% over the forecast period, i.e., 2023 â€“ 2035.

3) Who are the major players dominating the encryption software market?

Ans: The major players in the market are Amazon Web Services, Inc. (AWS), IBM Corporation, Microsoft Corporation, Check Point Software Technologies, F-Secure, Fortinet, Inc., Oracle Corporation, Cisco System, Inc., Palo Alto Networks, Inc., and Trend Micro Incorporated.

4) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

5) What are the segments in the encryption software market?

Ans: The market is segmented by component, application, industry vertical, deployment model, enterprise size, and by region.

6) Which segment captures the largest market size in the component segment in the encryption software market?

Ans: The software segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

7) What are the challenges affecting the market growth?

Ans: Easy availability of pirated and open-access software, and the high cost of encryption software solutions are estimated to be the growth hindering factors for the market expansion.

8) Which region will provide more business opportunities for the growth of the encryption software market in the future?

Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

Base Year	2022
Forecast Year	2023-2035
CAGR	~ 15%
Base Year Market Size (2022)	~ USD 13 Billion
Forecast Year Market Size (2035)	~ USD 70 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Encryption Software Market: Key Insights