Encryption Software Market Size, Share & Trends Analysis Report By Deployment (On-Premise, Cloud), By Application (Disk, Cloud, Network Traffic Encryption), By End Use, And Segment Forecasts, 2019 - 2025

Report Overview

The global encryption software market size was valued at USD 2.98 billion in 2018. It is projected to post a CAGR of 16.8% from 2019 to 2025. Data security concerns are on a rise with growing trend of Internet of Things (IoT) and Bring Your Own Device (BYOD), among enterprises. This has further led to an increase in cyberattacks, commercial espionage, data breaches, and theft & losses in companies, which is poised to escalate the need to protect sensitive data and ensure compliance.

Advancements in mobile technology in terms of hardware and software, their dissemination among businesses, and growing penetration of smartphones are likely to catapult the demand for encryption software by 2025. Growing penetration of mobile devices across organizations has augmented the risk of data loss among enterprises, which made executing encryption software imperative for safe data transmission. Furthermore, as enterprises are increasingly moving towards cloud computing, the need to safeguard sensitive data is increasing, thus resulting in an increased deployment for the software.

Several industry verticals, such as BFSI and healthcare, have to comply with stringent regulations, including PCI DSS and HIPPA, which requires the implementation of data security solution. This is translating into greater demand for encryption software across the globe.

Furthermore, rapid digitization and growing internet usage, intellectual property of enterprises, and users alike have become susceptible to theft and infringement. Owing to these security risks, companies are required to implement solutions to protect the data. Encryption software enables organizations to safeguard their intellectual property and other sensitive data, which is anticipated to boost its demand over the forecast period.

Purchase and implementation of these solutions require huge costs, which can inhibit the growth of the market. Moreover, the deployment options for these solutions are time-consuming and complex. However, the benefits offered by them often outweigh challenges pertaining to intricacy and time associated with their deployment.

North America dominated the market in 2018. Presence of the well-established IT & telecom sector in the region and generation of massive amount of data that needs to be safeguarded are contributing to the dominance of the region. Sudden upsurge in encrypted internet traffic due to the adoption of HTTPS by leading companies, including Facebook, Twitter, and Netflix, is expected to work in favor of the market over the forecast period.

Deployment Insights

Widespread embracement of social media, Internet of Things (IoT), and Internet of Everything (IoE) have enhanced business functioning along with increased data being generated and retrieved through mobile devices. This is estimated to fuel the demand for both on-premise and cloud-based deployment over the next few years.

The on-premise segment held more than 65.0% of the overall revenue in 2018. However, the cloud-based segment is anticipated to register a higher CAGR of over 17.0% over the forecast years. Spiraling the adoption of cloud storage solutions by several companies and expanding cloud infrastructure are contributing to the growth of the segment.

Moreover, developments in the IT & telecom sector, such as the emergence of CYOD (Choose Your Own Device) and BYOD, are projected to significantly impact the growth of the overall market during the same period. Establishment of new businesses in emerging economies is poised to further bolster the demand for cloud-based solutions.

Application Insights

Disk encryption is expected to be the most prominent application segment in the global encryption software market in 2018. Encrypted disks are safe as even if they get stolen or misplaced, the access to their contents remains limited to authorized user. With emergence and growing prominence of BYOD trend, exchange of critical data has become possible on employee’s devices. This has further augmented the need for strong encryption.

The cloud encryption segment is likely to be the most promising segment during the forecast period. Data storage is one of the key resources for various industries such as BFSI, retail, and others. As more organizations are moving towards cloud, due to the flexibility it offers in terms of scalability and usage policy, the demand for cloud encryption solutions is slated to increase.

Furthermore, proliferation of big data analytics has led to increased usage of these solutions by major internet services to ensure privacy of their users’ data. Burgeoning cyber-attacks and mobile theft are prompting regulatory bodies to mandate standards related to data transfer and its security.

End-Use Insights

The BFSI segment accounted for dominant share of over 32.0% in 2018. It is estimated to post the highest CAGR of 18.5% during the forecast period. Dynamic nature of the security industry and rising number of cyberattacks are resulting in increased need to protect sensitive financial data from breaches with maximum returns and minimum risk. As banking institutions are increasingly adopting cloud solutions, the segment is anticipated to experience a higher potential for deployment of these security solutions.

Banks generally follow traditional techniques such as email and DVDs to transfer data, which pose a high threat of data breach, thereby increasing growth opportunities in the banking and financial industry. Furthermore, high dependence on online transactions and need to protect them are projected to stir up the demand for encryption software in the BFSI sector by 2025.

Regional Insights

Asia Pacific represented over one fourth of the overall revenue in 2018. The region will be the most promising destination for market players during the forecast period, owing to lack of storage infrastructure, which has prompted organizations to store data on cloud. This is escalating the risk of thefts and data losses, thus stoking the demand for encryption software.

Additionally, rising penetration of IoT,cloud services, and BYOD has spurred the growth of the regional market. Rapid advancements in the manufacturing sector in countries including India and China, coupled with flourishing retail and IT & telecom sectors, are poised to stimulate the demand for the software over the forecast years.

Key Companies & Market Share Insights

The market is fragmented in nature. Major players include Microsoft Corporation, Bloombase, Symantec, Intel Security, EMC Corporation, Sophos, Check Point Software Technologies, Cisco Systems, Trend Micro, and IBM Corporation. These players offer data protection solutions to small & medium businesses (SBMs) and enterprises. Companies operating in the market focus on the development of innovative techniques related to advanced cryptography to provide robust data security.

Encryption Software Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the global encryption software market report based on deployment, application, end-use, and region:

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)

  • On-premise

  • Cloud-based

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Disk Encryption

  • File/Folder Encryption

  • Database Encryption

  • Web Communication Encryption

  • Network Traffic Encryption

  • Cloud Encryption

  • Others

• End-Use Outlook (Revenue, USD Million, 2014 - 2025)

  • BFSI

  • IT & Telecom

  • Retail

  • G&PA

  • Healthcare

  • Defense & Aerospace

  • Education

  • Manufacturing

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa