Encryption Software Market Size By Component (Software [Endpoint Encryption, Email Encryption, Cloud Encryption], Service [Training & Consulting, Integration & Maintenance, Managed Service]), By Deployment Model (On-Premise, Cloud), By Application (IT & Telecom, BFSI, Healthcare, Retail, Government & Public Sector, Manufacturing), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Industry Trends

Encryption Software Market size exceeded USD 6 billion in 2019 and is estimated to grow at over 15% CAGR between 2020 and 2026. Enterprises are looking for increasing their data security by implementing encryption technologies over cloud platforms and mobile devices.
 

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The encryption software industry growth is supported by increasing adoption of data encryption solutions for meeting regulatory compliance. Encryption of data has become a legal mandate for business operations in several nations for ensuring adequate privacy of customer data. Regulations, such as the Gramm-Leach-Bliley Act (U.S.), General Data Protection Regulation (Europe), and Personal Information Protection and Electronic Documents Act (Canada), have exerted additional pressure on enterprises to encrypt data on non-public customer information.
 

Another factor contributing to the encryption software market growth is the rising concern over securing enterprise IP assets. Key vendors are developing new solutions to address the protection of IP rights, proliferating the industry revenue. However, complexities in encryption key management, easily available pirated & open-source solutions, and stiff regulations on the import and sales may hinder the demand.
 

Growing uptake for enhanced data security

The software segment accounted for majority of the market with around 80% share in 2019 and is expected to maintain its dominance through 2026. Rising usage for securing enterprise IP and mitigating financial risks associated with loss or theft of confidential data is likely to boost the segment growth. Encryption software emerged as a viable solution for ensuring compliance with data privacy regulations.
 

The increasing importance of encryption solutions for protecting BYOD devices and reducing cyberattacks caused by employee negligence will further augment the market demand. Enterprises are transitioning from traditional cybersecurity methods towards advanced encryption algorithms to ensure that the data present on employee devices is encrypted for the entire duration of the data lifecycle.
 

Endpoint encryption driving the growth of on-premise solutions

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The on-premise segment held about 70% of the encryption software market share in 2019 impelled by extensive uptake of endpoint encryption solutions for securing on-premise files, drives, and databases. On-premise encryption software facilitates data partition where different encryption keys can be deployed to encrypt each data partition. The growing incidents of BYOD device thefts and physical intrusion on enterprise IT assets have increased the usage of on-premise solutions, ensuring data-at-rest is safeguarded against malicious attacks.
 

Furthermore, network encryption is better adapted to on-premise encryption technologies as organizations gain better control over the encryption of data across their networks. Another factor contributing to the growing adoption of on-premise encryption tools is better key management. Most organizations are still hesitant to deploy cloud-based encryption key management solutions owing to the fear of losing encryption keys, promoting the use of on-premise encryption deployment models.
 

Encryption technologies significantly impacting the APAC BFSI sector

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In Asia Pacific, the BFSI segment is poised to witness 24% gains through 2026 due to the extensive acceptance of encryption solutions for protecting Non-Personal Information (NPI), including credit scores, loan history, and income details. Stringent regulations imposed by several APAC nations for protecting financial data, such as Japan’s Act on the Protection of Personal Information and the Personal Data Privacy Ordinance (Hong Kong), have pressurized BFSI enterprises to encrypt their data for mitigating the risk of disclosure or manipulation of business-critical information.
 

Strong government initiatives fueling the market revenue in Germany

Germany captured nearly 25% of the encryption software market share in 2019 and is set to dominate till 2026. Early usage of data encryption technologies and the positive approach of government for pushing Germany as a global leader in cybersecurity and encryption are propelling the adoption across the country.
 

Furthermore, the advent of connected cars and advanced telematics solutions has promoted the uptake for securing Vehicle-to-Anything (V2X) communication data.
 

Focus on R&D and product portfolio expansion by industry players

Prominent players operating in the industry are focusing on improving their existing encryption solutions and investing heftily in the research & development of new encryption algorithms. Startups such as Duality and PreVeil, are focusing on developing end-to-end encryption for file sharing and e-mails, offering stiff competition to large market players.
 

Some of the encryption software market players include AO Kaspersky Lab, Bitdefender, Check Point Software Technologies Ltd., Ciphercloud.com, Cisco Systems, Inc., Dell Technologies Inc., ESET, spol  s.r.o., IBM Corporation, F-secure, McAfee, LLC (Intel), MicroFocus, Microsoft Corporation, Panda Security, Proofpoint, Sophos Ltd, Symantec Corporation (Broadcom, Inc.), Thales eSecurity, and Trend Micro, Inc.
 

This market research report on encryption software includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

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Market, By Component

• Software
  • Endpoint Encryption
  • Email Encryption
  • Cloud Encryption
• Service
  • Training & Consulting
  • Integration & Maintenance
  • Managed Service

Market, By Deployment Model

• On-premise
• Cloud

Market, By Application

• IT & Telecom
• BFSI
• Healthcare
• Retail
• Government & Public Sector
• Manufacturing

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Israel
  • Oman