Stringent regulatory compliances and the increasing concern for data security are expected to be driving the growth of the encryption software market. The encryption software market size is expected to grow from USD 3.87 billion in 2017 to USD 12.96 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 27.4%.
The market is expected to be driven by factors, such as the rising concerns of critical data loss in the on-premises environment, risk on cloud environment due to exploitation of big data analytics, and the regulations to increase the adoption of the encryption solutions.
However, the major hindrance faced by the enterprises while adopting the encryption software are believed to be the lack of budget for the adoption of the best-in-class encryption solutions, lack of awareness about encryption, and the performance concerns among enterprises. Cloud encryption application is expected to have the fastest growth rate during the forecast period
The cloud encryption application in the encryption software market is expected to grow at the fastest rate, during the forecast period. The major reason for the high growth rate of the cloud encryption application is said to be the ongoing expansive adoption of cloud among companies across the world.
There are numerous advantages associated with the adoption of cloud, such as improved flexibility and scalability, faster deployments, and enhanced mobility, which encourage the cloud adoption.
However, the risks associated with content protection and data compliance remain to be the prime impediment for embracing the cloud across businesses. This encourages the adoption of cloud encryption solutions to safeguard the sensitive information from being breached.
Banking, Financial Services, and Insurance (BFSI) vertical is expected to have the largest market size during the forecast period. Companies in the BFSI sector are expanding their offerings to maintain a competitive edge, save costs, and improve the customer experience with value-added services.
The increasing usage of mobile technology has enhanced the adoption of encryption solutions and services in the financial organizations. The financial sector uses encryption solutions to control and secure the sensitive data of customers and protect the data from the internal and external risks of theft.
In addition, banking organizations, to enhance their business opportunities, need to make use of external networks that are unsecured. Moreover, the pressure from the regulatory standards, such as Advanced Encryption Standard (AES) and Payment Card Industry Data Security Standard (PCI-DSS), has led companies in this sector to deliver security solutions with encryption software.
North America is expected to contribute to the largest market share and Asia Pacific (APAC) is estimated to grow at the fastest rate during the forecast period. North America is expected to have the largest market share and dominate the encryption software market from 2017 to 2022, owing to the early adoption of new and emerging technologies, and the presence of a large number of players in this region.
APAC offers extensive growth avenues for the encryption software market, owing to the widespread presence of Small and Medium-sized Enterprises (SMEs) and telecom companies that are extensively adopting encryption software to safeguard their sensitive data.
The break-up profiles of primary participants are given below:
- By company: Tier 1–55%, Tier 2–20%, and Tier 3–25%
- By designation: C-level–60%, Director level–25%, and Others–15%
- By region: North America–35%, Europe–25%, APAC–20%, Latin America–10%, and Middle East and Africa (MEA)–10%
The following key encryption software providers have been profiled in the report:
1. CipherCloud (California, US)
2. Dell (Texas, US)
3. ESET (Bratislava, Slovakia)
4. Gemalto (Amsterdam, Netherlands)
5. IBM (New York, US)
6. McAfee (California, US)
7. Microsoft (Washington, US)
8. PKWARE (Wisconsin, US)
9. Sophos (Abingdon, UK)
10. Symantec (California, US)
11. Thales e-Security (La Defense, France)
12. Trend Micro (Tokyo, Japan)
The encryption software market has been segmented on the basis of components (solution and services), applications, deployment types, organization sizes, verticals, and regions.
A detailed analysis of the key industry players has been done to provide key insights into their business overviews, solutions and services, key strategies, new product launches, partnerships, agreements and collaborations, business expansions, and the competitive landscape associated with the encryption software market.
The report will help the market leaders/new entrants in this market in the following ways:
- This report segments the encryption software market comprehensively and provides the closest approximations of the revenue numbers for the overall market and the subsegments across different regions.
- This report helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
- This report will help stakeholders to better understand the competitors and gain more insights to enhance their position in the business. The competitive landscape section includes vendor comparison of top market players in the encryption software market.
1.1 Objectives Of The Study
1.2 Market Definition
1.3 Market Scope
1.4 Years Considered
2. Research Methodology
2.1 Research Data
2.1.1 Secondary Data
2.1.2 Primary Data
126.96.36.199 Breakdown Of Primaries
188.8.131.52 Key Industry Insights
2.2 Market Size Estimation
2.3 Research Assumptions And Limitations
3. Executive Summary
4. Premium Insights
4.1 Attractive Opportunities In Encryption Software Market, 2017-2022
4.2 Encryption Software Market, Share Of Top 3 Applications And Regions, 2017
4.3 Encryption Software Market, By Service, 2017-2022
4.4 Encryption Software Market, By Professional Services, 2017
4.5 Encryption Software Market, By Deployment Type, 2017-2022
4.6 Encryption Software Market, By Organization Size, 2017-2022
4.7 Market Investment Scenario, 2017-2022
5. Market Overview
5.2 Market Dynamics
184.108.40.206 Growing Concern Over Critical Data Loss In On-Premises Environment
220.127.116.11 Exploitation Of Big Data Analytics Poses Risk To Cloud Environment
18.104.22.168 Regulations To Increase Adoption Of Encryption Solutions
22.214.171.124 Lack Of Budget For Adopting Best-In-Class Encryption Solutions
126.96.36.199 Lack Of Awareness About Encryption And Performance Concerns Among Enterprises
188.8.131.52 Surge In Demand For Integrated, Cloud-Based Encryption Solutions Among Smes
184.108.40.206 Large-Scale Adoption Of Encryption Solutions In Bfsi Vertical
220.127.116.11 Complexities In Management Of Encryption Keys
18.104.22.168 Lack Of Skilled Workforce Among Enterprises
5.3 Regulatory Implications
5.3.1 Payment Card Industry Data Security Standard
5.3.2 Health Insurance Portability And Accountability Act
5.3.3 Federal Information Security Management Act
5.3.4 Sarbanes–Oxley Act
5.3.5 Gramm–Leach–Bliley Act
5.3.6 Federal Information Processing Standards
5.3.7 General Data Protection Regulation
5.4 Innovation Spotlight
5.5 Use Cases
5.5.1 Large-Scale Adoption Of Email Encryption By Financial Organizations In The Uk
5.5.2 Adoption Of Encryption Solution By A Clinical Research Company
5.5.3 Reliance Of Small And Medium Financial Companies On Data Encryption
5.5.4 Large-Scale Adoption Of Encryption By It And Telecom Company
5.5.5 Need For Best-In-Class Encryption Solutions For Government Sector In Canada
5.5.6 Healthcare Vertical Relying On Cloud-Based Encryption Solutions
5.6 Type Of Encryption Algorithms
5.6.1 Data Encryption Standard
5.6.2 Advanced Encryption Standard
5.6.4 Blowfish Algorithm
5.6.5 Homomorphic Encryption
5.6.7 Diffie-Hellman Key Exchange
5.6.8 Quantum Cryptography
5.6.9 Post Quantum Cryptography
6. Encryption Software Market Analysis, By Component
6.2.1 Types Of Data Encrypted
22.214.171.124 Data At Rest
126.96.36.199 Data In Transit
188.8.131.52 Data In Use
6.2.2 Types Of Encryption
184.108.40.206 Symmetric Encryption
220.127.116.11 Asymmetric Encryption
6.2.3 Key Management
6.3.1 Professional Services
18.104.22.168 Support And Maintenance
22.214.171.124 Training And Education
126.96.36.199 Planning And Consulting
6.3.2 Managed Services
7. Encryption Software Market Analysis, By Application
7.2 Disk Encryption
7.3 File/Folder Encryption
7.4 Database Encryption
7.4.1 Application-Level Encryption
7.4.2 Database-Level Encryption
7.5 Communication Encryption
7.5.1 Voice Encryption
7.5.2 Email Encryption
7.5.3 Instant Messaging Encryption
7.6 Cloud Encryption
8. Encryption Software Market Analysis, By Deployment Type
9. Encryption Software Market Analysis, By Organization Size
9.2 Large Enterprises
9.3 Small And Medium-Sized Enterprises
10. Encryption Software Market Analysis, By Vertical
10.2 Banking, Financial Services, And Insurance
10.3 Aerospace And Defense
10.5 Government And Public Utilities
10.6 Telecom And It
11. Geographic Analysis
11.2 North America
11.4 Asia Pacific (Apac)
11.5 Middle East And Africa (Mea)
11.6 Latin America
12. Competitive Landscape
12.2 Market Ranking Analysis, By Company
13. Company Profiles
(Overview, Strength Of Product Portfolio, Business Strategy Excellence, And Recent Developments)
13.11 Thales E-Security
13.12 Trend Micro
*Details On Overview, Strength Of Product Portfolio, Business Strategy Excellence, And Recent Developments Might Not Be Captured In Case Of Unlisted Companies.
14.1 Discussion Guide
14.2 Knowledge Store: Publisher's Subscription Portal
14.3 Introducing Rt: Real-Time Market Intelligence
14.4 Available Customizations
14.5 Related Reports
14.6 Author Details
The encryption software market size is expected to grow from USD 3.87 Billion in 2017 to USD 12.96 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 27.4%. The demand for encryption software is likely to be driven by various factors, such as proliferation in the number of cyber-attacks and the stringent government regulations and compliances that mandate the adoption of encryption among various verticals.
The encryption software market has been segmented on the basis of components (solution and services), applications, deployment types, organization sizes, verticals, and regions. The services segment is expected to grow at the highest CAGR during the forecast period and the solution segment is estimated to have the largest market size in 2017 in the market.
Professional services have been widely adopted by organizations, as these services involve expert consulting, support and maintenance, and optimization and training for cybersecurity. However, the managed services segment is expected to grow at the highest CAGR during the forecast period, as managed security vendors provide extensive reporting capabilities for validating the regulatory compliance with internal security policies for the users.
The disk encryption application is estimated to hold the largest market share in 2017. The importance of encrypting a disk is that, if the encrypted disk is lost or stolen, the encrypted state of the drive remains unchanged, and only an authorized user will be able to access its contents. The cloud encryption application is expected to grow at the fastest rate during the forecast period.
Encryption solutions and services have been deployed across various verticals, including Banking, Financial Services, and Insurance (BFSI); aerospace and defense; government and public utilities; healthcare; telecom and IT; retail; and others (manufacturing, education, and media and entertainment). The telecom and IT vertical is expected to grow at the highest CAGR during the forecast period. However, the BFSI vertical is estimated to have the largest market size in 2017.
The global encryption software market has been segmented on the basis of regions into North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America, to provide a region-specific analysis in the report.
The North American region, followed by Europe, is expected to become the largest revenue-generating region for encryption software vendors in 2017. This is mainly because, in the developed economies of the US and Canada, there is a high focus on innovations obtained from R&D and security technologies. APAC is expected to be the fastest-growing region in the market. The growth in this region is primarily driven by the increasing adoption of cloud technology within the organizations and the presence of a large number of telecom companies that need to protect enormous subscriber data from theft.
The adoption of encryption software solutions and services is expected to be increasing in the market, owing to the increasing adoption of cloud technology among enterprises and the need to adhere to various compliances put forth by the government for the protection of mission-critical organizational data. However, the major hindrance faced by enterprises while adopting the encryption software solutions and services is the lack of awareness and budget, and the misbelief about performance issues.
The major vendors offering services and solutions to the encryption software market are Thales e-Security (La Defense, France), Gemalto (Amsterdam, Netherlands), Symantec (California, US), Dell (Texas, US), Sophos (Abingdon, UK), McAfee (California, US), Trend Micro (Tokyo, Japan), IBM (New York, US), Microsoft (Washington, US), PKWARE (Wisconsin, US), CipherCloud (California, US), ESET (Bratislava, Slovakia). These players have adopted various strategies, such as new product developments, collaborations, partnerships, and acquisitions, to expand their presence in the global market.
- CipherCloud (California, US)
- Dell (Texas, US)
- ESET (Bratislava, Slovakia)
- Gemalto (Amsterdam, Netherlands)
- IBM (New York, US)
- McAfee (California, US)
- Microsoft (Washington, US)
- PKWARE (Wisconsin, US)
- Sophos (Abingdon, UK)
- Symantec (California, US)
- Thales e-Security (La Defense, France)
- Trend Micro (Tokyo, Japan)