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The encryption software market size is projected to increase by USD 15.39 billion, at a CAGR of 15.97% between 2023 and 2028. The growth rate of the market depends on several factors, including the incorporation of AI and ML, the rise of policy-based management, and the integration with data loss prevention (DLP).
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including AxCrypt AB, Broadcom Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., Dekart SRL, Dell Technologies Inc., Dropbox Inc., Forcepoint LLC, Hewlett Packard Enterprise Co., Hitachi Ltd., International Business Machines Corp., Lookout Inc., McAfee LLC, Microsoft Corp., Oracle Corp., Sophos Ltd., Thales Group, Trend Micro Inc., Vaultree, WinMagic, and Intel Corp. Additionally, Amazon.com Inc. company offers AWS Encryption SDK, which is a client-side encryption designed to make it easy for everyone to encrypt and decrypt data using industry standards and best practices.
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The incorporation of AI and ML is the key factor driving the market. AI and ML algorithms can analyze vast amounts to identify patterns, anomalies, and potential security threats in encrypted traffic. By integrating AI-driven threat detection capabilities with software, organizations can detect and prevent sophisticated cyber threats, including malware, ransomware, and insider attacks, in real time. AI and ML algorithms can analyze user behavior, device activity, and network traffic patterns to establish baseline behavior and detect deviations indicative of security incidents or unauthorized access attempts.
Furthermore, by leveraging continuous learning and adaptation mechanisms, AI can evolve to address emerging threats, mitigate evolving risks, and adapt to changing requirements in dynamic environments. Hence, the integration of AI and ML represents a transformative shift in cybersecurity, empowering organizations to strengthen protection, enhance threat detection capabilities, and improve overall security posture. Thus, such factors are expected to strengthen market development during the forecast period.
The increasing demand for data-at-rest encryption is one of the primary market trends shaping the expansion. Data-at-rest protects sensitive information stored on storage devices, databases, servers, and other repositories from unauthorized access, theft, and breaches. With the proliferation of data breaches and cyberattacks targeting stored, organizations prioritize to mitigate the risk of data exposure and financial losses. Furthermore, data-at-rest safeguards personally identifiable information (PII), customer records, financial data, and other sensitive information stored in databases and data repositories.
Moreover, organizations encrypt sensitive workloads, applications, and virtual machines deployed in on-premises data centers, cloud environments, and hybrid infrastructures. Consequently, the rising demand for data-at-rest encryption is driven by the imperative to protect sensitive information, comply with regulatory requirements, mitigate security risks, and safeguard intellectual property in an increasingly interconnected and business environment, which is expected to propel market expansion during the forecast period.
The rise of quantum computing is a major challenge that affects market expansion. Quantum computing has the potential to render existing data encryption algorithms obsolete by exploiting their vulnerabilities, posing significant challenges to traditional cryptographic methods. Quantum computers can break classical algorithms, such as ECC (Elliptic Curve Cryptography), by efficiently solving certain mathematical problems, such as integer factorization and discrete logarithms. As quantum computing technology advances, the security of classical algorithms becomes increasingly compromised. The vulnerability of traditional encryption to quantum attacks raises concerns about the security of sensitive stored and transmitted using these encryption methods.
Additionally, to address the security risks posed by quantum computing, organizations must adopt quantum-resistant or quantum-safe solutions. However, the development and deployment of quantum-resistant encryption algorithms present technical challenges and require substantial research, investment, and standardization efforts. The availability and maturity of quantum-resistant solutions may lag behind the advancement of quantum computing technology, leaving organizations vulnerable to emerging threats which in turn may decline market development during the forecast period.
The market share by the disk encryption segment will be significant during the forecast period. The proliferation of mobile devices, such as laptops, smartphones, tablets, and removable storage media, has expanded the attack surface for cyber threats and data theft. This software is essential for securing stored on mobile devices and protecting sensitive business information. Furthermore, the rise of remote and distributed workforces necessitates robust security measures to protect accessed and stored on remote devices and endpoints.
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The disk encryption segment showed a gradual increase in the market share of USD 3.00 billion in 2018. Additionally, increasing adoption of cybersecurity best practices and risk management frameworks emphasizes the importance of encryption as a fundamental security control for protecting data confidentiality and integrity. Disk encryption is considered a critical component of a layered security strategy to mitigate cyber threats and prevent such breaches. These factors collectively drive the demand across various industries, sectors, and use cases, highlighting the critical role of encryption in safeguarding sensitive data and mitigating cybersecurity risks, which is expected to promote the development of the disk encryption segment of the market during the forecast period.
The on-premises segment will account for the largest share of this segment.?Highly regulated sectors like finance, healthcare, and government mandate to secure sensitive data, often preferring on-premises deployment for greater control over encryption keys and compliance with regulations like GDPR and HIPAA. Concerns about data sovereignty and privacy drive demand for on-premises solutions, especially where data residency laws apply. On-premises deployment reduces reliance on third-party providers, offering control and mitigating risks. AxCrypt by AxCrypt AB exemplifies on-premise security with AES-256 encryption and zero-knowledge access. Industries needing low latency or real-time favor on-premises solutions, integrating seamlessly with existing infrastructure and ensuring compliance through monitoring and audits. Thus, such factors are expected to promote the development of the market during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. North America grapples with rising cyber threats, driving demand to safeguard against data breaches and ransomware attacks. The surge in cloud computing and SaaS applications underscores the need for data encryption. With mobile devices prevalent, encryption ensures security for smartphones and tablets, combating theft and infringement. Deployment options such as on-premise and cloud-based solutions offer flexibility, addressing concerns over costs and implementation. Partnerships foster standards, enhancing data storage security. For instance, Dropbox's acquisition of Boxcryptor aims to fortify cloud encryption, reflecting the growing importance of data security in the retail and security industry segments.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bloombase: The company offers Bloombase StoreSafe, which is a powerful, versatile, and unified storage security software appliance to protect enterprise data without requiring drastic platform, application, and user workflow changes.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
The market is witnessing rapid growth driven by the proliferation of Internet of Things (IoT) and mobile technology advancements. With the rise of the Bring Your Own Device (BYOD) trend culture, cyberattacks and data breaches pose significant threats, especially in industry verticals like BFSI and healthcare,, where compliance with regulations such as PCI DSS and HIPAA is paramount. Protecting sensitive data from theft & losses and commercial espionage necessitates robust encryption solutions.
Cloud computing offers scalable options for deployment, including on-premise and cloud-based solutions, sharing revenue between providers and users. Security standards and regulatory bodies oversee data transfer and user data privacy ensuring authorized users access. As the Internet of Everything (IoE) expands, encryption software becomes pivotal for safeguarding intellectual property and financial data, driving demand in retail and IT & telecom sectors.
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.97% |
Market Growth 2024-2028 |
USD 15.39 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
14.02 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., AxCrypt AB, Bloombase, Broadcom Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., Dekart SRL, Dell Technologies Inc., Dropbox Inc., Forcepoint LLC, Hewlett Packard Enterprise Co., Hitachi Ltd., International Business Machines Corp., Lookout Inc., McAfee LLC, Microsoft Corp., Oracle Corp., Sophos Ltd., Thales Group, Trend Micro Inc., Vaultree, WinMagic, and Intel Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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