Global Encryption Software Market - 2022-2029

Global Encryption Software Market - 2022-2029

Market Overview

The global encryption software market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).

Data encryption converts readable data into an encoded format that can only be read or processed with the help of a decryption key. Data encryption ensures the integrity of user information transmitted over the network simply and effectively. Encryption is critical for many reasons, not just surfing. A hacker or thief won't negotiate their possession into identity theft, bank account takeover or worse if you encrypt all of the sensitive papers on your computer.

Encryption software can protect operational data moving over the internet or private networks, idle data on physical devices and businesses' existing cybersecurity policies. Firms can rely on standard cybersecurity solutions because encrypted data is resistant to hackers in data theft or entry into physical devices.

According to compliance and security needs, encryption software helps secure the confidentiality of information kept in folders and files and flows over networks or in transit. It uses software to encrypt and decrypt data at rest and in transit. As a result, encryption software helps to improve the security of confidential data by rendering the data unreadable even by the person allowed. As a result, the usage of encryption software is projected to rise in reaction to the rising number of cyber-attacks.

Market Dynamics

Stringent regulatory standards and data privacy compliances, raising concerns about the loss of crucial data and a tremendous increase in the adoption of cloud and virtualization technologies are primary reasons driving the encryption software industry.

The growing demand for data protection in SMEs

SME data, networks, endpoints and apps are not protected by robust security procedures in various industrial verticals. Cloud-based solutions are fast-growing among businesses, as the most common delivery model must meet IT security requirements.

Cloud implementation streamlines corporate processes by providing flexibility, scalability and cost-effectiveness. With SMEs increasingly focusing on cloud solutions, cloud encryption solutions and service providers are projected to see more chances to protect SMEs' data from security breaches and vulnerabilities.

The rising stringent regulations for data privacy

Most of today's standards and compliance rules are primarily concerned with protecting private data at rest, during transactions and while it traverses network connections. Proper encryption technology improves overall security while complying with data security and privacy requirements. Companies that sell encryption software provide user access controls and data encryption features to help end users comply with various data security and privacy regulations, including PCI-DSS, HIPAA, GDPR and the California Consumer Privacy Act (CCPA). Industries including BFSI, retail and healthcare, must comply with data protection requirements like PCI-DSS and HIPAA, which has resulted in a global need for encryption solutions.

The General Data Protection Rule (GDPR) is a ground-breaking regulation that oversees data privacy laws across Europe. It establishes norms for businesses in the EU for collecting, storing and exploiting personal data. GDPR rule violations result in significant fines that corporations must pay. PCI DSS is a data security standard made to assist businesses in processing card payments and preventing credit card fraud. As a result of these government regulations and regulatory compliances, businesses are being forced to implement encryption software and services.

Complexity, ineffective management of encryption software and risks of pirated software

Some organizations use various encryption technologies provided by vendors. Basic key management software can handle keys from numerous encryption systems in organizations with different encryption systems. One of the primary challenges for admin and IT teams is the inefficiency of key management software in handling keys. However, if the encryption key is leaked, important firm data is accessible to hackers, who will obtain it without a password or decryption key.

On the other hand, pirated encryption software, which refers to the unauthorized copying of licensed versions of the software, is one of the major downsides of the encryption software industry. Softlifting, software counterfeiting, OEM bundling, hard drive loading and rentals are examples of software piracy. Many firms employ pirated software since they are cost-effective. The use of such software will have a detrimental impact on market growth.

COVID-19 Impact Analysis

Adopting fast digital transformation methods due to COVID-19 has increased the volume of data kept in the clouds, posing new difficulties such as performance, availability and security, necessitating the adoption of encryption software solutions and services. As a result of COVID-19, organizations are increasingly focusing on centrally regulating various cloud services. As a result, the importance of data security is growing.

The growing use of BYOD and regulatory compliances would boost the expansion of the encryption software market during a pandemic. Most companies still use WFH and hybrid work patterns and the demand for encryption software for security assessments is expected to increase globally for threat intelligence.

Segment Analysis

By organization size, the encryption software market is segmented into small & medium enterprises and large enterprises.

The rising risks of fraud and security in small & medium enterprises

SMEs widely use encryption software to comply with regulations and mitigate fraud risks. The present use of mobile technology and the acceptance of BYOD trends and cloud-based services has helped SMEs improve their overall business structure and profitability. Data flow via business networks to personal devices, such as mobile phones and laptops, has increased, increasing false data, cyberattacks, data losses and the potential for personal data theft.

As security concerns have grown, SMEs have been obliged to focus on encryption solutions to secure and protect their data and personal information from being hacked or breached. Malicious cyber actors and APT organizations employing COVID-19 themes exploit the pandemic, placing SMEs at risk of phishing scams and ransomware assaults. When it comes to using encryption technology, SMEs have several challenges, including a lack of financial resources and technical knowledge.

Despite their budget limits, SMEs are compelled to utilize encryption solutions for data protection due to the need to protect corporate information. The loss of data could harm the company's brand image, resulting in a loss of consumers and income. The encryption solutions were created with SMEs' low budgets in mind. They are accessible via the cloud at a reasonable cost. SMBs can use the solutions to protect their data and company information while gaining secure real-time access. Encryption solutions are projected to gain widespread use among SMEs in the coming years.

Geographical Analysis

The growing need for cybersecurity in Asia-Pacific

The Indian government has proposed that internet intermediaries actively filter online material and identify the origins of private conversations using end-to-end encryption. To provide adequate data security in the cloud, most companies offer cloud encryption application-based software. The tremendous rise is attributable to rigorous rules and increasing breakthroughs in innovative financial technologies.

Asian governments, such as China, Singapore and Japan, are devoting a considerable portion of their federal budgets to improving their cybersecurity regimes. Government initiatives, fund assistance and R&D have all aided in the development of encryption solutions and services, contributing to the market's growth.

A scarcity of trained cybersecurity professionals in Asia-Pacific fuels the demand for consulting services, propelling the encryption software market to rise at a substantial CAGR over the forecast period. Several market competitors provide consultancy services for efficiently deploying encryption software in the region.

Competitive Landscape

The primary strategies players use in the encryption software market are partnerships and acquisitions. Rapid technological advancements have ushered in a slew of new business opportunities. Players continually focus on producing technologically advanced software for their customers.

Thales Group, Thales e-parent Security Company, finalized the acquisition of Gemalto, a leader in digital identification and security, in April 2019. The merger would establish a world-class leader with unrivaled digital identity and security solutions based on biometry, data protection and cybersecurity technology. Major global encryption software market companies include IBM Corporation, Amazon Web Services, Inc., Microsoft Corporation, Check Point Software Technologies Pvt., Ltd., Cisco System, Inc., Fortinet, Fujitsu, F-Secure, Palo Alto Networks, Inc. and Oracle Corporation.

IBM Corporation

Overview: IBM Corporation is a major American computer manufacturer with a sizable local and international market share. The headquarters of the corporation are in Armonk, New York. In 1911, the Computing-Tabulating-Recording Company merged three smaller businesses that made punch-card tabulators and other office equipment. The company now has over 40,000 active patents, which generate significant revenue.

IT & telecom, healthcare & life sciences, government, automobile, manufacturing, FMCG, chemicals & petroleum, electronics, energy & power, media & entertainment, mining, retail, BFSI, travel & transportation and education are the industries that IBM serves. The corporation operates in over 175 countries across North America, Europe, Asia-Pacific, Middle East & Africa and Latin America.

Product Portfolio: The Cloud & Cognitive Software Software category offers clients integrated & secure cloud, data and artificial intelligence (AI) software. IBM Security Guardium Data Encryption is a set of solutions based on the same architecture. Encryption, tokenization, data masking and key management capabilities are included in the highly scalable solutions to help safeguard and regulate access to databases, virtual, big data and on-premise environments. Using tokenization, data masking and key rotation to securely encrypt file and database data can help firms comply with government and industry requirements like GDPR, CCPA, PCI DSS and HIPAA.

Key Development: In December 2020, IBM Security launched a new service that allows enterprises to test fully homomorphic encryption (FHE). The developing technology protects data handled or analyzed in the cloud or third parties. The new IBM Security Homomorphic Encryption Services offer clients education, expert support and a testing environment to help them design prototype applications that use FHE.

Why Purchase the Report?

Visualize the composition of the encryption software market segmentation by component, deployment mode, organization size, end-user and region, highlighting the critical commercial assets and players.

Identify commercial opportunities in the encryption software market by analyzing trends and co-development deals.

Excel data sheet with thousands of encryption software market-level 4/5 segmentation points.

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Product mapping in excel for the key product of all major market players

The global encryption software market report would provide access to an approx. 69 market data table, 63 figures and 213 pages.

Target Audience 2022

Encryption Software Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Emerging Companies

Encryption Software Manufacturers