The encryption software market is surging rapidly all around the world in recent times and will continue to exhilarate towards greater heights in the upcoming years. The encryption software market forecast represents that the estimated market value of 13 billion at a CAGR 16.40% by the year 2030
Encryption software is defined as program-based software which utilizes cryptography techniques to protect digital information from unauthorized access. The process of encryption begins when the data passes through a sequence of mathematical operations and produces a different form of the same data. Such a sequence of operations is called algorithms. Encrypted and unencrypted data differ a lot. Unencrypted data implies a plain form of text, whereas encrypted data means ciphertext. The main object of the encryption software market is to produce ciphertext that cannot be easily changed again into plain text format. The prevention of unauthorized access to data and generating unreadable codes for data protection is boosting the encryption software industry growth.
As per the encryption software market analysis, the increase in the advent of end-point data security solutions in the telecommunication and information technology industry is giving rise to market demand. Software encryption is a great option to safeguard digital information from cyber-attacks or cybercrimes. The encryption software market facilitates the highest form of security to files stored in floppy disk or hard drive, e-mails, network communication, or other information that requires any sort of protection. With the increase in cyber-attacks on organizations, the growth of encryption software market share is also evident. For protection from rising cyber-attack cases and to maintain the confidential information protected, it is important to implement encryption software.
In recent years, the adoption of BYOD or bring your own device to enterprises has escalated for boosting the efficiency of employees. However, the BYOD has resulted in raising the issues of data loss and increased the unauthorized access to critical data, which encourages the demand for encryption software. The rising demand for encryption software in enterprises is enhancing the encryption software market revenue. Disk-based encryption in the encryption software market segment is going to have the largest share in the forecast years as the demand for hardware encryption is elevating to secure the data. Recent market trends enable a greater extent of security to the critical information and safeguard all such information from cyber-attacks by using complex processes.
The encryption software market forecast report describes the structure of the market along with the anticipated growth rate and valuation of the market in the next many years. It explains the impact of COVID19 on the encryption software market and provides information about the factors affecting the encryption software industry. It includes several segments and sub-segments of the market and sheds light on the key market players that are extremely responsible for the encryption software market growth. The report gives an idea about the global market analysis on different geographies that can influence the growth of the global market share in the near future.
Encryption Software Market COVID19 Analysis
The sudden outbreak of the COVID19 pandemic created a huge crisis all over the world in terms of both economy and health. The devastation in economic growth rate will require further many years to regain its momentum. All the processes in industries and production units shut down for an indefinite time period in the lockdown, which resulted in the disturbance in the supply chain. Many sectors faced challenges in maintaining day-to-day functions and have to bear the immense financial loss. However, the encryption software market sustained in these critical times and was able to keep up a stable growth rate. During the pandemic, companies adopted the work from the home policy, which created a surge in the consumption of data. Several big enterprises noticed a huge rise in data traffic, which enhanced the requirement of encryption software market demand.
The upsurge in the data traffic and huge consumption of data during the pandemic led to the encryption software market revenue raised to a greater extent. In the pandemic, there was a significant escalation in the cases of cyber-attacks which increased the demand for more encryption software. For protection from unauthorized access and prevention of confidential information, the adoption of the encryption software increased and elevated the growth of the encryption software industry.
The encryption software market is skyrocketing all across the globe with a swift speed and is expected to progress towards optimum levels in the coming years. Due to the escalation in end-point security solution implementation in the IT and telecommunication sector, the encryption software market growth is elevated. The work of encryption software is to provide protection to digital information from any cybercrime or attack. The encryption software market offers high-level security to files stored in floppy disk or hard drive, emails, network communication, or any other confidential data that requires protection. As per the encryption software industry analysis, the increased cases of cybercrimes or cyber-attacks in enterprises have given rise to the expansion of the encryption software market size.
BYOD or bring your own device has encouraged the efficiency of employees, and on the other hand, it escalated the unauthorized access to data and the issues of data loss. Improvements in global market trends will help in safeguarding such information from any cybercrime.
As the cases of cyber-attacks are increasing in organizations, the encryption software market demand is also escalating along with it. Enterprises have turned into an easy target for cybercrimes due to the availability of confidential information that can lead to huge profitability for cyber intruders. The prevalence of a greater amount of digital information requires encryption software for safeguarding the critical data and files from unauthorized access.
With the advent of digitization, prevention of data becomes necessary, which is raising the potential of the are market. In enterprises, it is common to bring your own device, but this increases the risk of data loss and unauthorized access to the information. Encryption software protects such information using unreadable codes, which enhances the global market opportunities for growth in the forecast years.
The emergence of coronavirus pandemic has restrained the encryption software market potential as several enterprises remained closed and the economic growth rate declined to lower levels. The restricted functioning of organizations has hampered the market growth. However, the rising consumption of data and increased cyber-attack cases during the lockdown elevated the encryption software market demand. This also helped in maintaining a steady growth rate along with expanding the market size.
The availability of innumerable market opportunities is raising the market growth. However, certain challenges limit the growth of encryption software market revenue. The encrypted data requires passwords all the time, which if one forgets becomes difficult to access, and the complexity in procedures can hinder the market growth in the coming times.
Value Chain Analysis
According to the market analysis, the value generated from the global market over the last couple of years shows a substantial rise. The encryption software market revenue is progressing at a rapid pace, and within few years, the market share will surpass the previous historical growth rate and will touch the highest points of growth.
The encryption software market is fragmented into several segments on the basis of deployment, organization size, application, services, and verticals. By deployment, the market segmentation includes on-premise and cloud. The encryption software industry segmentation on the basis of organization size consists of small enterprises, medium enterprises, and large enterprises.
On the basis of application, the market segment comprises communication encryption, disk encryption, database encryption, file or folder encryption, and cloud encryption. Among all the applications, disk encryption is expected to show the highest growth as it protects data by converting them into unreadable codes. The services segment of the market includes managed service and professional service. By verticals, the encryption software industry size consists of the healthcare sector, retail, IT and telecommunication, Government, BFSI, and others.
The encryption software market analysis is studied in certain geographical areas such as North America, Asia-Pacific, Europe, and the remaining parts of the world. North America dominates the encryption software industry share as major encryption software players are available in that region. In Asia-Pacific, small and medium enterprises are rapidly implementing encryption software for preventing cybercrimes and unauthorized access to data which prompts the market growth in that region.
Competitive Landscape of the market
The encryption software market prominent players are:
|Market Size||USD 13 billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Deployment, Services|
|Geographies Covered||North America, Europe, Aisa Pacific|
|Key Vendors||CheckPoint Software Technologies Ltd. (Israel) Microsoft Corporation (U.S.) Sophos Ltd. (U.S.) EMC Corporation (U.S.) Trend Micro Inc. (Japan) Intel Security Group (McAfee) (U.S.) Symantec Corporation (U.S.) SAS Institute Inc. (U.S.) IBM Corporation (U.S.)|
|Key Market Opportunities||The prevalence of a greater amount of digital information requires encryption software for safeguarding the critical data and files from unauthorized access.|
|Key Market Drivers||The encryption software market is skyrocketing all across the globe with a swift speed and is expected to progress towards optimum levels in the coming years.|
The global encryption software market is poised to witness substantial growth and record a significant market value of USD 13 billion by 2030, at a moderate CAGR of 16.40% over the review period (2021-2030).
A rise in the adoption of new technologies such as cloud, virtualization, and mobility, have are anticipated to contribute towards the growth of the market. Furthermore, an increase in demand for cloud data encryption is predicted to offer significant opportunities to market players.
The regional analysis of the global encryption software market has been carried out in five major regions, namely, North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. The Asia Pacific is slated to dominate the market share over the review period.
The segmentation of the global encryption software market is done on the basis of application.