Increasing cybersecurity threats could shape the cloud encryption industry outlook over the next ten years. Cybersecurity threats, including data breaches, ransomware attacks, and insider threats, continued to evolve and become more sophisticated. For instance, as per IT Governance, cyber-attacks dominated the landscape of security incidents in 2022. Out of all publicly disclosed incidents, a significant 57% amounted to 611 cyber attacks, establishing them as the most prevalent threat. Concurrently, there were 255 ransomware attacks detected, constituting 24% of all reported incidents. Ransomware, a preferred weapon in cybercriminals' arsenals, has seen an upsurge in the past five years, with a notable peak in 2021, during which 401 incidents were disclosed publicly. As a result, there was a heightened awareness of the need for encryption to safeguard data against these threats. Cloud encryption software is seen as a fundamental component of a holistic cybersecurity strategy, and this drove its adoption.
Growing adoption of quantum-safe encryption will stimulate the cloud encryption business growth. As quantum computing technology advances, the threat to traditional encryption methods increases. In response, there is a growing trend towards the development and adoption of quantum-safe encryption solutions. These encryption methods are designed to resist attacks by quantum computers, which could potentially break current encryption algorithms. The market is likely to see increased interest in and adoption of quantum-resistant encryption techniques.