Global Encryption Software Market (2021-2027) by Component, Application, Deployment, Organization Size, Industry Vertical, and Geography, IGR Competitive Analysis, Impact of Covid-19, Ansoff Analysis

The Global Encryption Software Market is estimated to be USD 11.6 Bn in 2021 and is expected to reach USD 25.46 Bn by 2027, growing at a CAGR of 14%.



Key factors such as the rising number of data breaches with the growing cyber-attacks have led to a high susceptibility for organizational data losses compelling the businesses to commit to data encryption software for maintaining adequate data security. This is likely to drive the market for encryption software. Other factors such as advancements in mobile technologies and the regulatory mandates laid by the Government are promoting the growth of the market. Moreover, due to the rising digitalization, internet use has grown, leading to high-security risks to the enterprise’s IP assets. The protection of the company assets has spurred the demand for these solutions, further supporting the growth of the market.

However, factors such as the easy availability of pirated & open-source software, rigid regulations on the import and sales of these solutions, and the high costs of the encryption solutions are likely to restrain the growth of the market.

Market Dynamics

Drivers

• An Increasing Number of Data Breaches
• Advancements in Mobile Technology
• Stringent Regulations on Cybersecurity and Data Privacy Compliances
• Rising Concerns over Securing Enterprise Intellectual Property (IP) Assets

Restraints

• High Capital Investment
• Regulatory Restrictions on Crypto-Software
• Easy Availability of Pirated and Free-To-Use Encryption Software

Opportunities

• The Increasing Proliferation of Cloud and Virtualization Technologies
• The Growing Trend of Bring Your Own Devices (BYOD) among Enterprises

Challenges

• Complexities in Encryption Key Management
• Limiting the use of Encrypted Devices in Some of The Countries
• Lack of Awareness about Encryption Software

Segments Covered

By Component, the Services segment is estimated to hold the highest market share. Along with a rising need for encryption software, there is a proportionate rise in the demand for encryption software services to help tackle special requirements. These services can enhance the security portfolio of an enterprise by preventing the entry of malicious attackers into the system with regular upgrades. The managed services are likely to grow at a faster rate as these services can aid in infrastructure management, maintenance, and deployment of encryption software solutions.

By Application, the Cloud Encryption segment is estimated to hold the highest market share as the organizations are continually seeking to ensure data security amidst the growing data churns and rising data breaches. Moreover, the organizations are looking to achieve efficiencies in business processes. Therefore, they are adopting innovative technologies and cloud-based solutions ranging from private to hybrid for storing these high volumes of data. The cloud encryption solutions provide the needed flexibility, scalability and are thus preferred by businesses. These factors are likely to boost the market segment growth for cloud encryption solutions.

By Deployment, the Cloud-based encryption deployment is estimated to hold the highest market share. The rising adoption of cloud infrastructure and cloud storage solutions due to the benefits of easy data maintenance, scalability, and faster accessibility has aggravated the rise in the adoption of cloud-based encryption software. Also, the increasing investments by the vendors in cloud-based encryption software are likely to advance the segment's growth further.

By Organization Size, Large Enterprises are estimated to hold the highest market share. These enterprises generate a large amount of data. This has increased the demand for encryption software among enterprises to ensure adequate data privacy. Moreover, data storage is one of the essential requisites for organizations in the retail, BFSI, and healthcare sector. Therefore, the enterprises in these sectors are likely to invest in encryption software, which is likely to further increase market demand.

By Industry Vertical, the BFSI segment is estimated to hold the highest market share. The BFSI segment holds large amounts of sensitive information about individuals and businesses. They depend highly on online transactions for transferring data, thereby making them more vulnerable to cyber-attacks. Also, since the banks are now following the cloud-based deployment infrastructures, they require encryption software to ensure high data integrity. These factors are likely to enhance the growth of encryption software in the BFSI segment.

By Geography, North America is likely to lead the market in the forecast period. The factors attributed to the region's growth are the developments taking place in the encryption software market in the wake of rising regulatory mandates and the fast adoption rate of innovative technologies. Besides, the growing investments and collaborations in the private and public sectors have contributed to the growth of the encryption software market.

The Global Encryption Software Market is segmented further based On Component, Application, Deployment, Organization Size, Industry Vertical, and Geography.

Company Profiles

Some of the companies covered in this report are Microsoft Corporation, McAfee, Dell EMC, Check Point Software Technologies, Cisco Systems, Trend Micro, IBM Corporation, etc.

Competitive Quadrant

The report includes the Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Encryption Software Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.

• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes in-depth market analysis using Porter’s 5 force model and the Ansoff Matrix. The impact of Covid-19 on the market is also featured in the report.

• The report also contains the competitive analysis using the Competitive Quadrant, the publisher’s proprietary competitive positioning tool.

Report Highlights:

• A complete analysis of the market, including parent industry
• Important market dynamics and trends
• Market segmentation
• Historical, current, and projected size of the market based on value and volume
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market