Cloud Encryption Market Research Report- Global Forecast 2027

Cloud Encryption Market, By Components (Solution, Service), By Service (Professional Service), By Service Model (Infrastructure-as-a-Service, Software-as-a-Service, Software-as-a-Service), By Cloud Deployment (Public, Private, Hybrid) - Forecast 2027

ID: MRFR/ICT/2908-HCR | February 2021 | Region: Global | 100 pages         

Cloud Encryption Market

Cloud Encryption Market valuation is anticipated to attain USD 2959 million by the year 2023


By Components Solution Service
By Service Professional Service
By Service Model Infrastructure-as-a-Service Software-as-a-Service Software-as-a-Service
By Cloud Deployment Public Private Hybrid

Key Players

  • Vaultive
  • Inc. (U.S.)
  • Thales e-Security (France)
  • Trend Micro Incorporated (Japan)
  • Gemalto N.V. (Netherlands)
  • HyTrust Inc. (U.S.)
  • Sophos Group Plc (U.K.)
  • CipherCloud (U.S.)
  • Symantec Corporation (U.S.)
  • Netskope Inc. (U.S.)
  • Skyhigh Networks (U.S.)


  • High adoption of cloud based services and rise in cyber-attacks
Speak to Analyst Request a Free Sample

Market Overview

Cloud encryption is defined as the process of transforming or encoding data before it gets stored in cloud storage. The cloud encryption industry utilizes mathematical algorithms to change the data, which may be in plain text form or image or file, into an unreadable form. In this way, it protects the information from malicious and unauthorized users to access the data. It is one of the simplest and best ways to ensure that the data cannot be breached, read, or stolen by someone will anomalous intention. All these features have resulted in the escalation of the cloud encryption market potential.

Over the years, the growing cases of data breaches and the rising number of spam have remained a serious concern for enterprises. Therefore, the demand for a more secure solution is elevating to a greater extent. As the dependency of companies has increased towards cloud encryption solutions, it, in turn, boosts the global cloud encryption market to rise upwards. The cloud storage providers encode or encrypt the data and pass the encryption keys to the users. The data can then be decrypted when needed and reform the data back into readable form. It protects the confidential and sensitive information of an organization from cyber-attacks which leads to the progression of the cloud encryption business.

There is no doubt that the cloud encryption market players have a vital role in pushing the overall cloud encryption market growth. Companies like Thales e-security, Gemalto N.V., and many others are consistently bringing new solutions that can provide better and secure cloud encryptions for the customers. Thales e-security has designed Vormetric transparent encryption virtual or physical servers executing on-premises to multi-cloud environments. Gemalto N.V. delivers enterprises a secure migration to the cloud as well as virtual data centers. It also provides secure encryption, a cloud access data center, protected cryptographic keys, and many more solutions for fulfilling the requirements of today’s times.

The report provides a detailed idea about the cloud encryption market structure and the factors affecting its growth. It describes the effect of COVID19 on the cloud encryption industry. It includes different cloud encryption market segments and the market players that propel the market growth upwards. A brief analysis is done on several geographies where the market can grow to optimum levels in the coming years. The demand for the global cloud encryption market is evolving at a faster rate, and with this speed, the market valuation is anticipated to attain USD 2959 million by the year 2023. The CAGR or growth rate is presumed to be 29 percent during the forecast years between 2017 and 2023.

COVID19 Analysis 

The COVID19 wave has critically affected the entire world both in the field of health as well as finance. Almost all the sectors got impacted by the adverse consequences of the pandemic and faced several challenges in operating the normal functions. In the lockdown, manufacturing units and industrial operations were restricted. The supply chain of the companies was disturbed, and a huge gap was created between demand and supply. However, during the pandemic, the cases of cyberattacks increased, and companies largely demanded cloud encryption solutions. This has helped the cloud encryption market to maintain a substantial rise.

Even the key market players put in maximum effort for providing better solutions and restoring the cloud encryption market growth. As the lockdown restrictions limited everyone, enterprises began to utilize more and more cloud-based systems. This elevated the demand for cloud encryption solutions, and its features protected the data from unauthorized and malicious users. The growing demand for cloud encryption solutions will fuel the expansion of cloud encryption market size in the near future.

Market Dynamics

Major Drivers of The Market

  • The cloud encryption market is soaring up at a breakneck pace due to the presence of a great competitive landscape. The key market players are bringing out new cloud encryption market trends that can provide effective and more secured solutions to customers. With the rapid increase in technology, the cases of cyberattacks are also escalating, and the best way of security is the cloud encryption solutions. The numerous malicious software and the increased number of spams have inclined enterprises to adopt and incorporate cloud encryption.

  • In the present times, the adoption of cloud-based services has escalated, and this is driving the overall growth of the cloud encryption business. The more advanced technologies are being made, the more demand for efficient cloud encryption solutions is happening. Within few years, the rising need for data protection by various sectors will fuel the global cloud encryption market.

Significant Opportunities for The Market

  • Cloud encryption benefits in minimizing the cost related to the IT infrastructure and helps enterprises to focus on their core business competencies. The advantage of data protection and security, as well as management of storage and privacy issues, creates an immense need for such solutions, which leads to the expansion of cloud encryption market size. 

  • It also provides data integrity and gives information regarding governance, and helps enterprises to be prepared legally. All these combinedly raise the cloud encryption market demand and will continue to surge in the coming years.

Market Restraints

  • The outbreak of coronavirus pandemic has impacted the cloud encryption market and became a big restraint in the growth path. During the lockdown, industrial operations were put at a halt and restricted the normal functioning of work. However, the increased number of cyberattacks has pushed enterprises the adopt cloud encryption solutions that aid the cloud encryption market growth to become stable.

Market Growth Challenges

  • Although the cloud encryption market has numerous growth opportunities, it also contains few limitations. The cloud encryption process is complex, and to read it, and one needs to have a decryption key that restricts users who want to access the information. Such complexity can constrain the growth of the cloud encryption market size.

Cumulative Growth Analysis

  • As per the cloud encryption market analysis, the demand for the cloud encryption market is not going to stop any sooner. In fact, the market value is expected to reach greater heights in the upcoming times, with a growth rate of 29 percent. The attempt of the key market players to provide solutions to overcome the challenges will help in boosting the overall market growth in the forecast years.

Segment Overview

The global cloud encryption market is fragmented into various segments based on the service model, cloud deployment, component, organization size, and vertical.

  • By Service Model: The cloud encryption market segment on the basis of the service model includes software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS). The SaaS platform is offering centrally hosted across the internet and runs on the servers of SaaS providers.

  • By Cloud Deployment: This segment of the cloud encryption market comprises public, private, and hybrid cloud deployment.

  • By Component: The component segment of the cloud encryption market is bifurcated into solutions and service sections. Cloud solutions have the highest market share as it benefits organizations to minimize the cost related to the IT infrastructure. The service segment involves managed service and professional service.

  • By Organization type: In this segment, the organizations are categorized into large-scale enterprises, medium and small-scale enterprises.

  • By Verticals: The cloud encryption market segment on the basis of verticals involves several sectors like healthcare and life science, retail and e-commerce, automotive and manufacturing, media and entertainment, IT and telecommunication, and many more.

Regional Analysis

The cloud encryption market analysis is done on various geographies such as Europe, North America, Asia-Pacific, and the remaining part of the world. The North American region has the major cloud encryption market share due to the presence of huge market players in the US and the presence of leaders in technology in the region. 

Europe accounts for the second biggest market in providing cloud encryption solutions. In the Asia-Pacific region, the growing economy and high presence of healthcare and IT sectors will boost the growth of the market in the forecast years.

Competitive Landscape

The prominent cloud encryption market players are:

  • Vaultive, Inc. (U.S.)

  • Thales e-Security (France)

  • Trend Micro Incorporated (Japan)

  • Gemalto N.V. (Netherlands)

  • HyTrust, Inc. (U.S.)

  • Sophos Group Plc (U.K.)

  • CipherCloud (U.S.)

  • Symantec Corporation (U.S.)

  • Netskope Inc. (U.S.)

  • Skyhigh Networks (U.S.)

Recent Developments

  • The adoption of homomorphic encryption will increase in the coming times that will ensure secure data in the cloud or in transit without compromising its integrity.

  • Bring your own encryption trend will escalate where organizations can determine the level of control they require for managing data security policies.

  • Encryption and key management will go hand in hand, and organizations will manage shorter digital certificate schedules.

Report Overview

  • The report focuses on the cloud encryption market insights and gives an idea about the forecasted valuation and growth rate of the market.

  • It provides COVID19 analysis of the cloud encryption industry and describes the market dynamics that will affect the market growth.

  • The report also includes several segments and regional analysis of the market.

  • It mentions the competitive landscape and recent developments of the cloud encryption market.

Speak to Analyst Ask for Customization

Frequently Asked Questions (FAQ) :

The cloud encryption market value will reach around USD 2959 million by the year 2023.

The cloud encryption market growth rate is presumed to be 29 percent between 2017 and 2023.