Encryption Software Market size worth over $20 Bn by 2026

Encryption Software Market size is set to surpass USD 20 billion by 2026; according to a new research report by Global Market Insights, Inc.
 

Encryption software includes applications that deploy data security protocols, known as cryptography, to prevent unauthorized access to digital information by transforming it into an encrypted format. The encrypted data then can be converted back into meaningful information only through the use of encryption keys. Enterprises across the globe are adopting the encryption software to ensure data security and safeguard the privacy of critical business information, creating a positive outlook for market growth.

 

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The encryption software market growth is supported by the growing trend of Bring Your Own Device (BYOD) policies as enterprises are trying to lower infrastructure costs and increase enterprise agility. As BYOD devices are not managed by internal IT teams, the risk of losing unencrypted data increases profoundly. Encryption software enables organizations to secure data residing on endpoints, including smartphones and laptops, providing a robust layer of security over passwords and biometric authentication. In addition, encryption solutions protect the confidentiality of digital information stored in these devices even in severe cases of physical intrusion or device theft/loss. For instance, in December 2019, Microsoft upgraded Intune, its endpoint OS management tool, to integrate breach notifications and encrypted on-screen keyboards for BYOD devices. This is expected to strengthen the security of the organization’s data stored on personal devices, propelling the market growth.
 

Encryption Software Market Size

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Rise in adoption of cloud and virtualization technologies augmenting the encryption software market growth

Enterprises are swiftly transitioning towards the uptake of cloud technologies to support business expansion and ensure high profitability. This has led to an increased risk of data theft and unauthorized access to data. Encryption solutions augment the functionalities of the existing cybersecurity measures by enabling enterprises to store confidential data in a scrambled format, significantly reducing the risks of information leak, even if the data is stolen or accessed unlawfully. Small enterprises and start-ups are increasingly using encryption software to encrypt the data before uploading it on cloud platforms, ensuring the safety of encryption keys stored within enterprise networks, and reducing cloud expenditure. For instance, in September 2019, Dataprise, an IT consultancy firm based in the U.S., integrated encryption software provided by Sophos into its systems to ensure a unified endpoint protection of its enterprise data.
 

The adoption of new technologies, including homomorphic encryption and quantum key encryption, will further lead to market growth. For instance, in June 2019, researchers from the Beijing University of Posts and Telecommunications successfully tested the transmission of quantum encryption keys over a 50 km distance. The new technology distributed public keys 100 times quicker than the existing methods and is a significant step in the commercialization of quantum encryption technologies.
 

Browse key industry insights spread across 260 pages with 269 market data tables and 26 figures & charts from the report, “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), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/encryption-software-market
 

Services market to grow impressively as organizations focus on core business strengths

The adoption of encryption services is projected to grow at a CAGR of over 20% from 2020 to 2026, as enterprises are looking to outsource encryption operations to reduce maintenance costs and focus on core business strengths. As Small and Medium Enterprises (SMEs) are outsourcing cloud storage to managed service providers, there is an increasing trend of procuring encryption services from these service providers to reduce IT expenses and leverage bundled offers. Service providers have identified encryption software as an important business prospect and are focusing accordingly to strengthen their domain expertise to increase encryption software market share. For instance, in April 2017, Zersian, a cybersecurity services provider based in the UK, partnered with MFG Managed Encryption to provide MFG’s encryption solutions as its preferred reseller in Europe. This helped Zersian address the growing need of its customers for a fully managed encryption solution compliant with the GDPR.
 

Adoption of Encryption-as-a-Service (EaaS) propelling the deployment of cloud-based solutions

The cloud deployment segment is set to witness the fastest growth rate with a CAGR of around 25% from 2020 to 2026. As enterprises are increasingly deploying cloud services for accelerated business growth, the EaaS subscription model is becoming more popular for providing encryption solutions, eliminating the need for upfront infrastructure investments. These solutions assist enterprises in encrypting enterprise data without investing in additional resources and also meet regulatory compliance. Cloud service providers are marketing EaaS as a value enhancement over their Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS) platforms. Furthermore, the growing trend of Bring Your Own Key (BYOK), which offers cloud customers an option to provide their own encryption keys for cloud data encryption, will accentuate the encryption software market growth. For instance, in September 2019, Google introduced BYOK in Google Cloud, enabling users to integrate their own encryption keys with Google cloud encryption algorithms.
 

Stiff data privacy laws driving the uptake of encryption software market in the healthcare sector

The healthcare sector will witness a rapid growth in the uptake of encryption software due to the increasing pressure on healthcare organizations to meet data security regulatory compliance. Government regulations such as HIPAA (U.S.), PCEHR (Australia) and ERDIP (UK) make it mandatory for institutes to encrypt all sensitive Personal Health Information (PHI), such as medical diagnostic history, surgeries and terminally ill patient data. Additionally, the encryption of PHI provides an additional breadth of security to healthcare enterprises in cases of employee negligence or ransomware attacks due to the failure of other cybersecurity protocols. Encryption solution providers and healthcare enterprises are working in conjunction to ensure digital healthcare records are safeguarded against malicious cyberattacks. For instance, in July 2018, Change Healthcare, a clinical technology company, launched BYOK encryption for its cloud bases healthcare analytics suite. The new solution enables customers to use up 4096-bit encrypted public and private keys and store them on-premise ensuring HIPAA compliance, helping the company target new customers and strengthen its market position.
 

Growing usage of blockchain technology augmenting industry growth in Italy

Italy is anticipated to exhibit lucrative market growth in Europe with a CAGR of above 10% from 2020 to 2026 due to the surging adoption of blockchain technologies and the rising mainstream use of cryptocurrencies in the digital payments market. According to the 2018 report published by the Blockchain Observatory & Distributed Ledger Department, Milan Polytechnic, USD 16.70 million were invested in the development of blockchain projects in Italy. Furthermore, in June 2018, the Italian government announced its initiative to adopt encryption and cryptography as a major tool for securing confidential digital information in supply chains, citizen identification records, and financial auditing. The increasing adoption of the Internet of Things (IoT) in Italy has also accelerated the growth of the encryption software market. According to the 2017 report on IoT by Milan Polytechnic University, the Italian IoT market underwent a 32% Y-o-Y revenue growth, creating a positive outlook for the adoption of IoT encryption solutions for regulatory compliance and ensuring complete security of customer private information.
 

The encryption software industry players are laying emphasis on forging strategic alliances and improving their research capabilities to offer new solutions and provide regular software updates, strengthening their market position and gaining a competitive edge. For instance, in November 2019, NordVPN, a global provider of VPN solutions, launched NordLocker, an end-to-end encryption software. This solution acts as a unified data security platform for both personal & commercial uses, pushing the NordVPN brand as a total cybersecurity solutions provider. The industry growth is attributed to growing investments by major market players in new cryptographic algorithms for improving software performance and promoting the adoption of data encryption, augmenting the market growth. For instance, in August 2019, IBM Research Labs announced the successful testing of quantum key encryption, which is expected to be launched in 2020 via IBM Cloud. This will help IBM in becoming the first organization to offer a quantum key algorithm on a public cloud platform, significantly strengthening its market position.
 

Some of the key players in the encryption software market share are 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.
 

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