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The cloud encryption software market is estimated to grow at a CAGR of 39.25% between 2022 and 2027. The size of the market is forecast to increase by USD 7,995.34 million. The growth of the market depends on several factors, including increasing use of in-built cloud encryption solutions, growing data privacy and security concerns, and data security due to strict regulatory compliance.
This report extensively covers market segmentation by end-user (BFSI, manufacturing, professional services, healthcare, and others), type (large enterprise and SME), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing use of in-built cloud encryption solutions is notably driving the market growth, although factors such as the increasing adoption of BYOD may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Cloud Encryption Software Market Driver
The increasing use of in-built cloud encryption solutions is notably driving market growth. With the adoption of the Software as a Service method, location-independent tasks and cloud hosting requires cloud encryption software for data and business security. Cloud encryption software provides data security by masking important data and information through encryption. Several organizations, to mitigate data breaches, are adopting in-built cloud encryption software.
Increasing penetration of encryption solutions will help vendors gain market share and build a broad customer base. The increasing use of mobile devices is creating a need to protect personal information, which will drive the demand for in-built cloud encryption during the forecast period. Vendors of in-built cloud encryption software are developing software to provide better security and gain market share. The use of in-built cloud encryption software is growing, owing to ease of deployment and better protection than traditional IT methods. Such factors are expected to drive the growth of the market during the forecast period.
Significant Cloud Encryption Software Market Trend
Increasing adoption of BYOD is a key trend in the market. BYOD is a current trend in which employees are allowed to bring their own devices, such as mobile phones, laptops, and tablets, to offices to access corporate information. The advantages of BYOD include less stress on the IT department for updating devices and improvements in productivity. This helps the organization save on operational costs. However, the adoption of BYOD has created some challenges for organizations, such as the increased risk of a security breach, as employees can share confidential information through social media or personal email IDs.
The monitoring of social media platforms and cloud-based applications becomes difficult in BYOD. Due to this, the demand for cloud encryption software is increasing to restore cybersecurity within organizations. Such factors are expected to drive the growth of the market during the forecast period.
Major Cloud Encryption Software Market Challenge
High capital investment for deployment is the major challenge impeding market growth. The deployment of cloud encryption software requires high capital investments, which acts as a major challenge for vendors. The price of cloud encryption software includes the cost of software licensing, system designing and customization, implementation, training, and maintenance. After purchasing the software license, organizations have to employ an IT team for the proper implementation of the software. In addition, enterprises need to train their employees on the efficient use of the software. The overall cost of cloud encryption software also contains hidden costs, such as the cost of training and skill development programs to understand the functionality of the software.
The successful implementation of cloud encryption software requires the assistance of an in-house IT team to manage and resolve issues, which adds to the overall cost of implementation. The high cost of implementation impedes the adoption of in-house cybersecurity solutions, which will inhibit the growth of the market during the forecast period
Key Cloud Encryption Software Market Customer Landscape
The report includes the adoption lifecycle of the market, 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 growth strategies.
Global Cloud Encryption Software Market Customer Landscape
Vendors 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.
Forcepoint LLC - The company offers cloud encryption software such as Cloud Access Security Broker. Under this segment, the company offers a cloud security gateway, a cloud access security broker, a secure web gateway, an email security solution, and a URL filtering solution.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the BFSI segment will be significant during the forecast period. The BFSI segment includes banks and various other financial institutions. The segment is evolving at a fast pace due to the increasing digitization of core processes. Banks and financial institutions are introducing multiple payment options for online transactions for customer convenience.
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The BFSI segment was valued at USD 296.02 million in 2017 and continued to grow until 2021. Mobile banking is gaining popularity among customers as it provides easiness and flexibility. Customers can perform all functions of a bank with mobile banking applications. With the rise in cyberattacks and threats from hackers due to the increase in online transactions, banks and financial institutions are installing cloud encryption software to reinforce cybersecurity.
Cloud encryption software reduces the chance of data loss and data breaches, which ensures confidentiality and safeguards data from unauthorized access. Additionally, banks and financial institutions prefer to move data to the cloud, owing to the difficulty in managing confidential data, which is increasing in volume. This will lead to investments in security solutions, thereby driving the demand for cloud encryption software.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America holds the largest share of the market. This can be attributed to the rising demand for security solutions from a majority of data centers in the region. The growing adoption of biometric encryption, increasing data breaches, and the increasing use of in-built cloud encryption in North America will fuel the demand for cloud encryption software during the forecast period.
The US, Canada, and Mexico are the leading countries in terms of consumption of cloud encryption software in the Americas. Growing data privacy concerns due to the increasing penetration of smartphones, laptops, tablets, and Internet of things (IoT) enabled devices will drive the market in the region. The rising demand for IoT-connected devices from households as well as enterprises in the region may impact the regional market positively.
The demand for cloud encryption software increased rapidly owing to the outbreak of COVID-19. An increase in the adoption of cloud-based technology to facilitate remote working and ensure business continuity is also driving the growth of the market in North America. Additionally, the outbreak has prompted vendors to come up with new business strategies to meet the high demand for cloud encryption software in the region.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by End-user (BFSI, Manufacturing, Professional services, Healthcare, and Others), Type (Large enterprise and Small and Medium Enterprise (SME)), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).
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Cloud Encryption Software Market Scope |
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Report Coverage |
Details |
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Page number |
180 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 39.25% |
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Market growth 2023-2027 |
USD 7,995.34 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
37.99 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 38% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., Dell Technologies Inc., F Secure Corp., Forcepoint LLC, Hewlett Packard Enterprise Co., Hitachi Ltd., Intel Corp., International Business Machines Corp., Intuit Inc., Lookout Inc., McAfee LLC, Microsoft Corp., Netskope Inc., Proofpoint Inc., Secomba GmbH, Sophos Ltd., Thales Group, and Trend Micro Inc. |
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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. |
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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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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