Network Encryption Market: Current Analysis and Forecast (2022-2028)

Network Encryption Market: Current Analysis and Forecast (2022-2028)

Network encryption is a technique of encrypting or coding data and messages that are transmitted or communicated via a computer network. Network encryption is primarily implemented on the network layer of the OSI model, to encrypt the data, message, or packet sent over the network, network encryption incorporates one or more encryption techniques, methods, and standards. The encryption services are typically offered by encryption software, embedded encryption algorithms in software, or network devices.

The Network Encryption Market is expected to grow at a steady rate of around 9% owing to the growing use of the internet resulting in an increased risk of data breaches across the globe. The growing adoption of network encryption can be attributed to the growth of various compliance and regulations around the globe related to data security. Moreover, the rise in the demand for adopting cloud technology is also expected to significantly influence the market growth during the analysis time period. For instance, according to Zippia, in 2020, 94% of enterprises around the world use cloud services in some form. The public cloud has many users which put consumers in a very vulnerable spot for data breaches and cyber-attacks. Furthermore, technological advancements such as the internet of things in multiple software and hardware application are expected to create significant opportunities for the market.

• Based on component, the market is segmented into hardware, platform, and services. The hardware segment is expected to witness a higher CAGR during the forecast period. Features such as high speed, robust security, and low latency among other network encryption hardware are driving the segment growth during the forecast period. Moreover, the growing technological advancement and growing prominence of consumer electronics are expected to drive the market during the forecast period. For instance, according to bankmycell, there are around 6.37 billion active smartphones in the world in 2021.
• Based on organization size, the network encryption market has been classified into large enterprises and SMEs. The large enterprise is to witness higher adoption in 2020 and is expected to maintain its domination throughout the forecast period. As large organizations are the early users of the network encryption solution because they must protect vast amounts of data created by numerous application areas, including sales, marketing, HR, and internal operations. Moreover, due to the massive amounts of content generated by enterprise applications every second to gain a competitive advantage, large businesses across all industries are leading the way in implementing network encryption solutions.
• Based on verticals, the network encryption market has been classified into telecom and IT, BFSI, media and entertainment, government, and others. The telecom and IT segment is anticipated to witness higher adoption during the forecast period. Network encryption tools are being used by telecom and IT service providers to protect sensitive data. For instance, in November 2022, Vodafone partnered with IBM on quantum safe cyber security. Moreover, the rising prevalence of online fraud is also expected to surge the market growth during the forecast period.
• For a better understanding of the market adoption of the network encryption industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America led the network encryption market in 2021 with the highest market share and is expected to maintain the same throughout the forecast period. The growing adoption in the region is mainly attributed to the growing cases on data breaches. For instance, according to Surf Shark, the United States experienced more than 200 million data breaches in the year 2021. Moreover, the governments in the region offer appropriate platforms for startups and SMEs, in terms of government regulations and compliances. Hence, enterprises are growing rapidly and have a massive demand for network encryption. These factors are expected to drive the market during the analysis time period.
• Some of the major players operating in the market include Thales TCT, ATMedia Gmbh, Atos SE, Juniper Networks Inc, Certes Networks Inc, Senetas Corporation Ltd, Viasat Inc, Raytheon Technologies Corporation, Securosys SA, and Huawei Technologies Co., Ltd..