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Encryption Technology and Information Security
Frost & Sullivan, April 2003
Increasing Security Concerns Stimulate Encryption Applications Market
Organizations' growing security concerns and the increasing adoption of the Internet for business-to-business (B2B) transactions are propelling the growth of the dynamic encryption applications market. Researchers, government agencies, manufacturers, and the military are keenly focusing on encryption and other core information security technologies. Enhanced research and development funding, venture capital, and investments in security infrastructure, as well as a host of new opportunities and applications are catapulting this market into a major growth area, while attracting an increasing number of vendors eager to exploit these revenue opportunities.
This Technical Insights study provides in-depth coverage of key developments, trends, and emerging applications in different encryption and information security segments. This report discusses technology breakthroughs, the investment and funding environment, provides a detailed list of pertinent patents along with abstracts as well as profiles of key developers in the field.
Robust Growth Expected for Public Key Infrastructure (PKI) Solutions
Improvements in security provided by public key cryptography and other encryption systems are providing much higher security than existed before, says the analyst. PKI technology provides a variety of crucial enabling capacities for electronic business processes. Having evolved to a rapid-growth stage, this market's revenues are expected to grow enormously as e-commerce becomes a mainstay of B2B transactions.
Virtual private networks (VPNs) enable businesses to enjoy secure electronic data transfer over the Internet and offer direct cost savings. Encryption vendors can also look forward to increased demand for e-mail encryption applications, which can provide cost-effective, safe transmission of sensitive matter.
Advanced Security Systems and New Developments the Key to Rapid Growth
Faster growth will come from advanced forms of protection such as intrusion detection systems (IDS), tools that protect specific applications on corporate networks, and vulnerability-assessment software and services, says the analyst. Companies are expected to increasingly add IDS to their existing security infrastructure to monitor inbound and outbound network activity and identify suspicious patterns.
New research in quantum cryptography has revealed a novel high-speed method that uses the properties of light to encrypt information into a form of code that is difficult to crack. Once optimized, this method has great potential to replace the mathematical cryptography currently in use and eventually to be employed in real-world applications. Cryptography vendors are also working on appropriate technologies for small mobile devices and smart cards. Elliptic Curve Cryptosystems (ECC), a PKI technology, is ideal for this purpose and provides strong encryption while using algorithms with relatively small key sizes and more efficient computational methods.
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