ID: MRFR/ICT/1201-HCR | 110 Pages | Published By Ankit Gupta on March 2023
Data Encryption Market Size was valued at USD 11.5 billion in 2021. The data encryption market industry is projected to grow from USD 13.4 billion in 2022 to USD 38.5 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 16.30% during the forecast period (2022 - 2030). The key market drivers accelerating the data encryption industry's growth are the advancements in digital data transfer via smartphones and changing network security. Future years will see the industry grow even more due to the advancement of digital technology, making the telecommunications and IT sectors more susceptible to data loss or cyberattacks.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Increasing numbers of data breaches to propel the market growth
Data and security breaches have become more commonplace in recent years. For instance, in June 2020, the Chartered Professional Accountants of Canada (CPA) had a cyber-attack that resulted in the loss of personal data for more than 329,000 stakeholders and members. Data protection technology and practices that assist businesses store and secure important data are urgently needed as a result of rising data breaches across all industry sectors. Companies all around the world are choosing encryption software as a crucial preventative precaution against data and security breaches. Systems and databases are kept secure because ransomware cannot compromise cryptographic security controls. Thus, encryption techniques like encryption and steganography are employed to increase data security, which in turn helps to thwart cyber threats from stealing data. This is also anticipated to fuel the expansion of the data encryption industry. Additionally, the amount of data produced by digital channels, cloud computing, and the internet of things (IoT) has grown, necessitating a greater demand for data privacy solutions. Thus, this factor is driving the market CAGR for data encryption.
Additionally, due to an increase in data theft and cybercrime occurrences, the big data and internet of things (IOTs) have greatly contributed to the expanding use of internet services and the rising demands for data protection. IoT enables the integration of sensors, actuators, radio frequency, and Bluetooth in a real world through highly networked services. Moreover, a key element boosting the market's growth for data encryption over the anticipated period is the emphasis on efficiency brought on by expanding urbanization.
Furthermore, governments of growing countries like China, South Korea, Dubai, India, Singapore, and Japan are aiming for their countries' economies to flourish, which is partly why the market is speeding. During the projected period, the overall market expansion for data encryption will be accelerated by governments' increasing use of big data analytics to improve internet services. Additionally, it is anticipated that the improvement in people's living standards would fuel the market's growth rate during the anticipated time.
However, the market for data encryption will see profitable chances due to the rising usage of various modern technologies and cloud-based services, which will accelerate market expansion for data encryption in the future. Building networking patterns makes use of cutting-edge technology including artificial intelligence, machine learning, blockchain, and big data analytics. Due to their increased application across many industries, these technologies are expanding. Over the anticipated term, all of these elements are generating a number of lucrative growth chances for the data encryption market. Thus, it is anticipated that this aspect will accelerate data encryption market revenue.
The data encryption market segmentation has been segmented by deployment into on-premise and advanced on-premise. The on-premise segment dominated the market growth in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The increasing deployment of the internet of things (IoT) and the expansion of digital channels like social media have improved endpoint data collection and company operations. This is expected to increase industry vertical demand for the on-premises deployment of data encryption.
Figure 2: Data Encryption Market by Deployment, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The data encryption market segmentation, based on vertical, IT and telecom, BFSI, retail sector, government, healthcare sector and aerospace & defense. The BFSI segment dominated the data encryption market revenue in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Banks and other financial institutions regularly hold important data, including financial and client information. This information is very prone to data breaches, and in the event of one, banks may be required to pay hefty fines. The need to protect sensitive financial data from full returns and low-risk breaches is driven by the complexity of the sector and the rise of cyberthreats.
By region, the study provides the market insights for data encryption into North America, Europe, Asia-Pacific, and the Rest of the World. North America data encryption market accounted for USD 4.9 billion in 2021 and is expected to exhibit a 43.10% CAGR during the study period because there are more people online and more sellers of encryption software in the area. The requirement to encrypt the data that travels through the network has increased as a result of the mobile wireless network's quick expansion. Due to its booming need for data encryption in its communication infrastructure and its rapid use of cloud computing, the United States outperformed all other North American nations in this industry.
Further, the major countries studied in the market report for data encryption are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: DATA ENCRYPTION MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Asia Pacific Data encryption market is expected to grow at a significant CAGR from 2022 to 2030. The absence of storage infrastructure in the region has forced businesses to store their data in the cloud, making it the most attractive location for market players during the forecast period. The risk of thefts and data losses is rising as a result, which is fueling demand for data encryption. Additionally, the regional market has expanded as a result of increased IoT, cloud, and BYOD penetration. Further, the China Data encryption market held the largest market share, and the India Data encryption market was the fastest-growing market in the region.
Europe Data encryption market accounts for the second-fastest growing market share due to the region's developed IT and telecom industry and the growing necessity to protect the vast amounts of produced data. The use of personal computers and the Internet in the private sector is also anticipated to increase demand for encryption solutions in this area over the ensuing years. Moreover, UK Data encryption market held the largest market share, and the Germany Data encryption market was the fastest-growing market in this region.
Major market players are spending a lot on R&D to increase their product lines, which will help the data encryption industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.
One of the primary business strategies manufacturers adopt in the data encryption industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, data encryption industry has provided medicine with some of the most significant benefits. The data encryption market major player such as Microsoft Corporation (US), IBM Corporation (US), Symantec Corporation (US), Intel Security (US), HP (US), Oracle Corporation (US), Gemalto (The Netherlands), Netapp Inc. (US), FireEye Inc. (US) and Vormetric Inc. (US).
An international business with a focus on computer technology and consulting is called IBM. Its corporate headquarters are in New York, US, and it was founded in 1911. IBM offers a range of cybersecurity technologies, including sophisticated fraud protection, network protection, endpoint protection, mainframe security, application security, data security, and cloud and mobile security. In December 2020, IBM introduced FHE, allowing data to stay encrypted even while being processed or analyzed on the cloud or in environments provided by third parties.
Also, the American multinational technology company Microsoft Corporation creates computer software, home appliances, laptops, and related services. The Windows line of operating systems, the Microsoft Office package, and the Internet Explorer and Edge web browsers are among Microsoft's most well-known software offerings. Microsoft is headquartered on the Microsoft campus in Redmond, Washington.
IBM Corporation (US)
Symantec Corporation (US)
Intel Security (US)
Oracle Corporation (US)
Gemalto (The Netherlands)
Netapp Inc. (US)
FireEye Inc. (US)
Vormetric Inc. (US)
September 2022: Convergence Technology Solutions Corp., a supplier of software-enabled IT and cloud solutions, declared that it has obtained certification in Canada to sell and deploy IBM zsystems and LinuxONE.
November 2019: Penta Security Systems announced that it has been selected as a finalist for the 2020 SC Magazine Awards, which are given by SC Media and celebrated in the United States. As a result, MyDiamo from Penta Security has been named the Best Database Security Solution of 2020. Additionally, this will result in the expansion of common-level encryption and improve the open-source DBMS installation procedure.
IT and Telecom
Aerospace & Defense
|Market Size 2021||USD 11.5 Billion|
|Market Size 2022||USD 13.4 Billion|
|Market Size 2030||USD 38.5 Billion|
|Compound Annual Growth Rate (CAGR)||16.30% (2022-2030)|
|Historical Data||2018 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Deployment, Vertical and Region|
|Geographies Covered||North America, Europe, Asia Pacific, and Rest of the World|
|Countries Covered||The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||Microsoft Corporation (US), IBM Corporation (US), Symantec Corporation (US), Intel Security (US), HP (US), Oracle Corporation (US)|
|Key Market Opportunities||Governments increasing use of big data analytics to improve internet services|
|Key Market Dynamics||Increasing cases of data breach Expanding use of internet services|
The data encryption market size was expected to be USD 11.5 billion in 2021.
The market is expected to register a CAGR of ~16.30% over the next ten years.
North America held the largest market share in the data encryption market.
Microsoft Corporation (US), IBM Corporation (US), Symantec Corporation (US), Intel Security (US), HP (US), Oracle Corporation (US) are the key players in the data encryption market.
The on-premise testing category led the segment in the data encryption market.
The BFSI category had the largest market share in the data encryption market.