Global Data Encryption Market Research Report — Forecast 2030

Impact of COVID-19 on the Data Encryption Market

Data encryption is the process of conversion of data from a readable format to an encoded format that can only be processed or read using a decryption key. It enables data security, ensuring the integrity of user information shared over a network. With the rise of information technology, the rate of data thefts and other unethical activities has raised cybersecurity concerns. Since the outbreak of COVID-19, the world has become more digitized and connected through the Internet, in turn, becoming more vulnerable than before. Large, as well as small business enterprises, have been shifting towards digital solutions that attract hackers. However, the industry organizations have increased their budget for cybersecurity solutions, which in turn has increased the demand for data security solutions, including data encryption. According to an article published in May 2020, the coronavirus crisis has created new opportunities for cybercriminals, and about 70% of organizations have allocated the highest priority to cybersecurity breaches.

Furthermore, the recent report says that over 55% of key business organizations are expected to increase their expenditure in the adoption of automation solutions using Industrial IoT, computer vision, artificial intelligence, machine learning, etc. For instance, the proposed budget of the US Government for the fiscal year 2021 has allocated USD 18.8 billion to federal cybersecurity programs and related initiatives. Data encryption software helps protect confidential information stored in the computing systems while ensuring that files are shared as per the compliance and security requirements. It encrypts and decrypts the data set at-rest as well as data-in-transit, rendering the data unreadable even for the authorized person till he/she has access to the valid decryption key for the data.

Number of Local Threats Detected During the First Quarter of 2019 VS 2020

The above chart shows the rapid increase in the number of local threats detected by AO Kaspersky Lab during the first quarter of 2019 versus 2020, indicating the rise in cyberattacks during the lockdown and the rapid adoption of digital solutions for business continuity. The data generation rate is rapidly increasing due to the rise in the Internet and smartphone users across the globe. This increase, in turn, has boosted the demand for secured data storage in data center environments. Thus, the demand for data encryption software solutions is expected to grow exponentially in the future.

Source: Kaspersky Security Network (KSN) Report