Encryption Software Market size was over USD 17.16 billion in 2024 and is projected to cross USD 106.98 billion by the end of 2037, growing at more than 14.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of encryption software is estimated at USD 19.23 billion.
There has been an increasing adoption of cloud services and digital technologies by many organizations to store data and the growing incidence of data breaches across the globe.
There has been an escalating rise in the usage of mobile services and other wireless communication technology. Additionally, the rising demand for cloud-based encryption software and growing concern of people regarding the loss of sensitive data is contributing to the growth of the market.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
14.9% |
Base Year Market Size (2024) |
USD 17.16 billion |
Forecast Year Market Size (2037) |
USD 106.98 billion |
Regional Scope |
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Component (Software, Services)
The software segment will have a significant market share during 2023-2037, 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 |
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Application |
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Industry Vertical |
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Deployment Model |
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Enterprise Size |
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APAC Market Forecast
The Asia Pacific region is expected to dominate the market share till 2037. 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 2037. 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.
Author Credits: Abhishek Verma
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