Encryption Software Industry Overview

The global encryption software market size was valued at USD 13.46 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 16.2% from 2023 to 2030.

Data security concerns are rising with the growing trend of the Internet of Things (IoT) and Bring Your Own Device (BYOD) among enterprises. It has further led to increased instances of cyberattacks, commercial espionage, data breaches, and theft losses in companies, which is poised to escalate the need to protect sensitive data and ensure compliance.

Gather more insights about the market drivers, restrains and growth of the Encryption Software Market

Mobile technology advancements in hardware and software, their dissemination among businesses, and the growing penetration of smartphones are likely to catapult the demand for encryption software by 2030. The growing penetration of mobile devices across organizations has augmented the risk of data loss among enterprises, which has made executing encryption software imperative for safe data transmission. Furthermore, as enterprises are increasingly moving towards cloud computing, the need to safeguard sensitive data is increasing, thus resulting in increased deployment of this software.

Several industry verticals, such as BFSI and healthcare, must comply with stringent regulations, including PCI DSS and HIPAA, which require data security solutions. It translates to greater demand for encryption software globally. Furthermore, with rapid digitization and growing internet usage, enterprise and user intellectual property has become susceptible to theft and infringement. Owing to these risks, companies are required to protect the data. Encryption software enables organizations to safeguard their intellectual property and sensitive data, which is expected to boost its demand over the forecast period.

However, the purchase and implementation of these solutions involve huge costs, which can inhibit the growth of the encryption software market. Moreover, the deployment options for these solutions are time-consuming and complex. On the other hand, their benefits generally outweigh the challenges of the intricacy and time associated with their deployment.

North America dominated the market in 2022. The presence of a well-established IT telecom sector in the region and the generation of massive amounts of data that needs to be safeguarded are contributing to the region’s dominance. A sudden upsurge in encrypted internet traffic due to the adoption of HTTPS by leading companies, including Facebook, Twitter, and Netflix, is expected to favor the market over the forecast period.

Browse through Grand View Research's Network Security Industry Research Reports.

• The big data security market size was estimated at USD 20.82 billion in 2023 and is anticipated to grow at a CAGR of 17.3% from 2024 to 2030. 
• The global deep packet inspection market sizewas valued at USD 26.83 billion in 2023 and is projected to grow at a CAGR of 25.1% from 2024 to 2030.

Encryption Software Market Segmentation

Grand View Research has segmented the global encryption software market based on deployment, application, end-use, and region:

Encryption Software Deployment Outlook (Revenue, USD Million, 2017 - 2030)

• On-premise
• Cloud-based

Encryption Software Application Outlook (Revenue, USD Million, 2017 - 2030)

• Disk encryption
• File/Folder Encryption
• Database Encryption
• Web Communication Encryption
• Network Traffic Encryption
• Cloud Encryption
• Others

Encryption Software End-use Outlook (Revenue, USD Million, 2017 - 2030)

• BFSI
• IT Telecom
• Retail
• GPA
• Healthcare
• Defense Aerospace
• Education
• Manufacturing

Encryption Software Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America
  • S.
  • Canada
• Europe
  • UK
  • Germany
  • France
• Asia Pacific
  • China
  • India
  • Japan
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • United Arab Emirates (UAE)
  • Saudi Arabia
  • South Africa

Key Companies profiled:

• Bloombase
• Cisco Systems, Inc.
• Check Point Software Technologies Ltd.
• Dell Inc.
• IBM Corporation
• McAfee, LLC
• Microsoft
• Oracle
• Sophos Ltd.
• Broadcom
• Trend Micro Incorporated
• WinMagic

Recent Developments

• In June 2023, Amazon Web Services (AWS) introduced a new encryption option called Amazon S3 dual-layer server-side encryption with keys stored in AWS Key Management Service (DSSE-KMS). This advanced feature enhances the security of objects uploaded to an Amazon Simple Storage Service (Amazon S3) bucket by applying two layers of encryption. By utilizing DSSE-KMS, customers can meet regulatory requirements and apply multiple layers of encryption to their data, ensuring enhanced data protection
• In May 2023, Vaultree significantly improved safeguarding healthcare data by introducing its state-of-the-art, fully functional Data-in-Use encryption solution to the industry. Accompanied by an innovative software development kit and an encrypted chat tool, Vaultree's technology transforms the data encryption landscape. It offers comprehensive protection for sensitive patient data, ensuring its security even during a breach, while maintaining operational efficiency and performance
• In February 2023, Irdeto, a digital platform cybersecurity provider, introduced an enhanced version of its software development kit (SDK) known as ActiveCloak for Media (ACM). This upgraded solution incorporates multiple layers of security to safeguard against the unauthorized extraction of content encryption keys from devices
• In January 2023, at AWS, Amazon Simple Storage Service (Amazon S3) implemented encryption by default for all newly uploaded objects. S3 applies server-side encryption (SSE-S3) to each new object unless an alternative encryption option is specified. Whenever a user uploads an object, a unique key is generated to encrypt the data, which is then encrypted again using a root key, all transparently to the user

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