Encryption Software Market: Global Industry Analysis and Forecast (2023-2029)

Encryption Software Market was valued at US$ 12 Bn. in 2022. Global Encryption Software Market size is estimated to grow at a CAGR of 14.27 % during the forecast period. The market is expected to reach at value of US $ 30.55 Bn. in 2029.
Encryption Software Market Overview:
Software encryption is one of the fastest developing solutions for end-point data security. Encryption software offers digital data protection by using the concept of cryptography. This software aids to prevent any unauthorized access to any digital data. Encryption software allows the encryption of the content of a file, data object, network, or application, and tablets, laptops, and removable media.

Software companies around the globe such as IBM, Thales e-Security and Microsoft have been quickly adopting encraayption software to improve data security and boost business proficiency. Growing adoption of new technologies like cloud, mobility, and virtualization, are projected to accelerate the market for encryption software size during 2021-2022. As per the report of ITAA (Information Technology Association of America) approximately 83% of enterprise workloads was a cloud in 2021. Adoption and usage of such technologies are expected to boom the demand for the encryption software market globally.

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Major players operating in the software encryption market such as Microsoft, IBM, Symantec, Thales e-Security, Trend Micro and others. In France, Thales e-Security is among the top vendors offering encryption solutions and services across the world. The Thales’s encryption product offering includes Vormetric application crypto-suite, data encryption, and key management. Thales e-Security provides its customers with best-in-class encryption solutions to meet compliance. In 2022, the company devoted nearly 6% of its annual revenue in R and D to developing new products with improved capabilities and increasing a competitive edge.
Encryption Software Market Dynamics:
Digitalization and Internet Penetration is Growing Around the Globe: Small and big organizations are exceedingly investing in employing digital solutions in their business operations to expand their distribution channels and improve their productivity while restructuring the varied processes involved. The growing internet penetration and digitalization with heightened adoption of IoT across different industries are expected to increase the demand for the technology of encryption software.

With the rising trend of remote working facilities and the wide use of enterprise mobility solutions such as tablets and smartphones, the risk for data theft and leaks has also increased. Consequently, companies are investing in quality software of encryption mechanisms to mitigate the risk of data theft, particularly in cloud-based operations. Furthermore, the increasing awareness about encryption technology is also contributing to its popularity in the market. These factors are projected to positively impact the global market growth during 2023-2029.

Data and Security Breaches to spur Business Opportunities: Increasing usage of encryption software for securing enterprise IP and mitigating financial risks associated with theft or loss of confidential data is expected to drive the market growth. Encryption software was developed as a viable solution for confirming compliance with data privacy regulations. As per the Thales e-Security report in 2022, a foremost cybersecurity firm, the adoption of encryption software observed a 7% Y-o-Y growth in FY-2021 with approximately 41% of all worldwide enterprises using standalone encryption products to save their data.
Impact of COVID-19 on Encryption Software Market:
The Covid-19 crisis had a positive impact on the demand for banking encryption software. The rise in adoption of mobile payment services and increased use of digital banking services during the pandemic favoured the growth of the market

The growing use of remote access technologies has increased the chances for IT outages and cyber-security breaches, which, in turn, will allow the growth of the market during the Covid-19 pandemic. The surging digitalization and IT activities have consequently increased risks for cyber hacks. The growing rate of phishing attacks, malware attacks, and ransomware attacks due to work from culture will further spur opportunities for the global encryption software market among coronavirus. Besides, the growing knowledge about securing private networks and databases will drive demand for encryption solutions in upcoming years.
Hindering factors on Encryption Software Market:
The higher capital investment required for the maintenance and installation of hardware encryption devices is one of the major factors hindering the growth of the encryption software market globally. The restrictions on the use of encrypted devices in some economies is another hampering factor affecting the global market’s development. The lack of education on encryption, the complexity of encryption keys, and regulatory restrictions on encryption software are factors hindering the global market’s expansion.
Encryption Software Market Segment Analysis:
The Encryption Software Market is segmented into Organization Size, Service, Industry Vertical and Application.

Based on Industry Vertical, the market is sub-segmented into IT & Telecommunication, BFSI, Healthcare, Entertainment and Media, Retail, Education and Other Industry Verticals. In 2022, the BFSI segment accounted for a dominant share of over 32.60%. As the banking organizations move towards the cloud, the segment showcases a higher probability for the deployment of this encryption software.

Generally, Banks follow traditional techniques for example DVDs and email to transfer data, which pose a high threat of data breach. According to the Financial Conduct Authority (FCA) report in 2022, the number of data breaches reported by U.K. financial services firms increased to 48% in 2022, from 25% in 2017. Instead, online transactions are growing at a rapid pace owing to technological developments in several major economies. Such as, in India, online transactions increased to US$ 1.2 Bn. in 2022, with registration growth of 51% over the preceding year. As these transactions are the main target for cybercriminals, cryptography is a must desired process to continue the integrity of the transaction.

By application, the cloud encryption segment is expected to grow at the largest CAGR of nearly 24.10% during the forecast period. This growth is attributed to the growing demand for securing sensitive data across the world. Companies have been adopting cloud at a rapid pace and are positively embracing diverse cloud environments, ranging from hybrid and private to public for the storage of their huge data. Maximum vendors in the market for encryption software provides cloud-based encryption software to gain substantial profits and confirm data privacy.
Regional Insights:
In 2022, North America dominated the global market, accounting for more than 35 per cent of the market share followed by APAC. Rising the number of data breaches, and the upsurge in adoption of technologies like CYOD and BYOD where encryption software has possible to encrypt important digital information to keep sensitive data reduce and secure the cyberattacks, which are significant growth factors for the market in North America. In 2022, according to the Information Technology Association of America report, above 36% of North American businesses had adopted BYOD programs in some form at the start of this year. Adoption of such technologies will fuel the usage of encryption software in the USA.

The U.S. government has developed AES (Advanced Encryption Standard) as a standard, and most of the encryption software nowadays follow the AES. Even those that support other algorithms are inclined to recommend using Advanced Encryption Standard.

Leading market key players are working to demonstrate the opportunity to Encryption Software Market Globally.

In August 2021, IBM Company (Switzerland) introduced IBM TS-1160, a new encryption algorithm requested to be secure even compared to highly powerful quantum computers. The encryption solution can be simply integrated into the firmware of hard drives and can protect data- at rest against cyber-attacks.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help understand the Market dynamic and structure by analyzing the market segments and projecting the Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Market make the report investor’s guide.
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Encryption Software Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US$ 12 Bn.


Forecast Period 2023 to 2029 CAGR:
14.27%
Market Size in 2029:
US$ 30.55 Bn.


 Segments Covered:
by Organization Size
SMEs
Large Enterprises


by Service
Professional Services
Managed Services


by Application
Disk Encryption
File/Folder Encryption
Database Encryption
Communication Encryption
Cloud Encryption


by Industry Vertical
IT & Telecommunication
BFSI
Healthcare
Entertainment and Media
Retail
Education
Other Industry Verticals



Encryption Software Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (razil, Argentina Rest of South America)
Key Players:
1. IBM
2. Microsoft
3. Symantec
4. Thales e-Security
5. Trend Micro
6. Sophos
7. Check Point
8. Micro Focus
9. McAfee
10. Dell
11. ORACLE CORPORATION
12. WinMagic
13. ESET
14. Cryptomathic
15. Bitdefender
16. Stormshield
17. CipherCloud
18. AMAZON WEB SERVICES, INC (AWS)
Frequently Asked Questions:
1] What segments are covered in the Encryption Software Market report?
Ans. The segments covered in the Encryption Software Market report are based on Organization Size, Service, Industry Vertical and Application.

2] Which region is expected to hold the highest share in the Encryption Software Market?
Ans. North America region is expected to hold the highest share in the Encryption Software Market.

3] What is the market size of the Encryption Software Market by 2029?
Ans. The market size of the Encryption Software Market by 2029 is US$ 30.55 Bn.

4] What is the forecast period for the Encryption Software Market?
Ans. The forecast period for the Encryption Software Market is 2023-2029.

5] What was the market size of the Encryption Software Market in 2022?
Ans. The market size of the Encryption Software Market in 2022 was US$ 12 Bn.