E-mail Encryption Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, Japan - Size and Forecast 2024-2028

E-Mail Encryption Market Size 2024-2028 

The e-mail encryption market size is projected to increase by USD 16.03 billion, at a CAGR of 32.4% between 2023 and 2028. The market's expansion is influenced by several key factors. Primarily, the widespread adoption of cloud-based services has increased the need for robust encryption solutions to secure data in transit. Additionally, the extensive use of emails for business communication necessitates the implementation of encryption technologies to safeguard sensitive information. Furthermore, stringent government regulations, such as the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA), mandate the use of encryption to prevent data breaches and protect privacy. Consequently, the market is poised for significant growth as organizations seek to mitigate risks and ensure data security.

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 Barracuda Networks Inc., Barracuda Networks Inc, Check Point Software Technologies Ltd., Cisco Systems Inc., Dell Technologies Inc., Egress Software Technologies Ltd., Entrust Corp., Fortinet Inc., Jussystemer AS, McAfee LLC, Microsoft Corp., Mimecast Ltd., Musarubra US LLC, OpenText Corp., Proofpoint Inc., Proton AG, SAP SE, Sophos Ltd., Trend Micro Inc., Trustifi LLC, and WatchGuard Technologies Inc.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics 

The market is experiencing rapid growth in response to escalating email data breaches, BEC frauds, and spear-phishing attacks orchestrated by cybercriminals. Organizations are adopting robust data protection frameworks and investing in AI and ML-powered solutions to safeguard against malware attacks and phishing activities, particularly in the face of increased remote workforce security challenges. The landscape of email security is evolving to encompass secure communications and combat spam emails, emphasizing the need for cloud integration and mobile security in business enterprises. As digital communication becomes ubiquitous, cloud-based deployment of encryption solutions is gaining traction, especially in financial services and online banking sectors, to mitigate insider threats and prevent unauthorized access or interception of sensitive information by non-authorized parties. The expert analysis underscores the importance of proactive measures to counter the impacts of recession on IT spending and uphold the integrity of email communications in an increasingly interconnected world. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

One of the key factors driving the market growth is the extensive use of emails for communication. There is an increasing use of emails by employees as it is a cost-effective mode of business communication and is thus extensively used for sharing confidential information. The main advantage of emails is that it helps to keep track of business communication and allows the backup of data through email archiving. 

Moreover, this mode of communication is widely used to share information with customers, companies, and partners. Further, there is a steady use of emails for corporate communication even though there is a significant use of social media channels such as LinkedIn, Facebook, Twitter, and Google+. Hence, such factors are expected to drive market growth during the forecast period.

Significant Market Trends

A key factor shaping the market growth is the emergence of integrated security solutions. There is an increasing preference for email encryption solutions integrated and converged with security solutions among end-users that offer overall security to devices and networks. The main reason for this increasing preference is due to the integration issues of different standalone security solutions.

Moreover, the email encryption solutions integrated with other security solutions, including data loss prevention (DLP), will minimize the overall cost of owning email encryption solutions for the customers, thereby fuelling its adoption. Several market players, such as McAfee, offer email encryption solutions integrated with network security solutions as a package, which is significantly fuelling its adoption in the market. Hence, such factors are expected to drive market growth during the forecast period.

Major Market Challenge

The high total cost of ownership of email encryption solutions is one of the key challenges hindering market growth. The total cost of deployment of an email encryption solution comprises the cost of software licensing for a number of components such as the key management software and a secure web-facing encrypted email, system designing and customization, implementation, training, and maintenance. Additionally, it offers complete public key infrastructure (PKI) that consists of multiple internal and web-facing servers, additional storage for encrypted emails, and software licenses.

Moreover, the main features of PKIs include the frequent monitoring of activities like help desk support, rotating user certificates, and maintaining certificate revocation lists. However, it is essential to upgrade email encryption solutions regularly after the implementation. Hence, such factors are increasing the cost which in turn will negatively impact the market. Thus it is expected to hinder the market growth during the forecast period.

Market Segmentation 

By Solution

The secure e-mail gateways segment is estimated to witness significant growth during the forecast period. Some of the main functions of the secure email gateways segment include inbound filtering of spam, phishing, malicious and marketing emails, preventing outbound data loss, and email encryption. There is an increase in the adoption of secure email gateways among organizations as they face challenges regarding loss of data which leads to damage to their reputation.

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The secure e-mail gateways segment was the largest segment and was valued at USD 1.36 billion in 2018. Several organizations are more prone to financial threats due to their increased use of the Internet to transfer an organization's critical financial data, along with the exchange of emails among employees. Additionally, the immense availability of enterprise information on social media makes them vulnerable to cyber security threats. Moreover, the segment has a slow growth due to the decrease in the use of hardware devices and appliances and the increase in the adoption of SaaS-based solutions for organizations. However, there is an increasing adoption of this segment in developing economies which will drive market growth during the forecast period.

By End-user

The increasing cases of fraudulent activities in the BFSI sector will drive market growth during the forecast period. Several financial institutions are upgrading their communication systems as well as technology for enhancing their business process. There is high adoption of mobile-based or desk-based email platforms across financial institutions. Some of the key information which is communicated over emails include personal bank accounts, transaction details, credit card information, or any other important information. Hence, there is increasing adoption of these encryption solutions, which is expected to fuel the growth of the segment, which in turn will drive the market growth during the forecast period.

By Region

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North America is estimated to contribute 34% 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. Moreover, there is an increasing adoption of upgraded technologies in the region such as biometric technologies and multifactor authentication, to encrypt and decrypt emails. Several prominent market players, such as McAfee, are offering integrated email security solutions, which is minimizing the demand for standalone email encryption solutions. Another prominent market player is Trend Micro which offers its email encryption solutions to enterprises from Canada, Mexico, and the US to secure email communication between employees, customers, and partners. Hence, the rising cases of malicious emails and the presence of technology providers are expected to drive market growth in North America during the forecast period.

Key Market Customer Landscape

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.

Market Customer Landscape

Key Companies & Market Insights

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.

Check Point Software Technologies Ltd: The company offers email encryption such as Harmony Email and Collaboration HEC for Microsoft 365, Google Workspace, and other collaboration and file-sharing apps.

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.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Solution Outlook 
  • Secure e-mail gateways
  • Software
• End-user Outlook 
  • BFSI
  • Healthcare
  • Government
  • Others
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is witnessing exponential growth fueled by rising cybersecurity threats and the need for robust encryption technology to protect digital operations. Leveraging concepts from quantum physics and cryptography, innovative solutions like biometric encryption and VPNs offer secure communication channels for financial commitment and information exchange across IT infrastructure. Both SMEs and large enterprises are adopting hybrid models that ensure interoperability while addressing infrastructure limitations and mitigating cyber risks.

Further, in the email security landscape, cloud service providers play a pivotal role, offering software and services that are both cloud-based and on-premise to cater to diverse IT & telecom needs. With a focus on protecting authorized parties and enhancing operational efficiency, organizations are turning to advanced encryption algorithms, artificial intelligence, and machine learning to combat cyberattacks and fortify their communication processes. WireWheel and other industry leaders are at the forefront, providing comprehensive cybersecurity measures to support digital strategies and ensure seamless technology penetration with state-of-the-art digital tools.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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