Banking Encryption Software Global Market Report 2024

The banking encryption software market size has grown rapidly in recent years. It will grow from $3.71 billion in 2023 to $4.18 billion in 2024 at a compound annual growth rate (CAGR) of 12.7%. The expansion observed in the historical period can be attributed to the increase in cyber threats, the implementation of stringent data protection regulations, the growth in the adoption of cloud computing, the shift towards mobile banking, as well as efforts in fraud prevention and compliance.

The banking encryption software market size is expected to see rapid growth in the next few years. It will grow to $6.79 billion in 2028 at a compound annual growth rate (CAGR) of 12.9%. The anticipated growth in the forecast period can be attributed to the expansion of digital banking, heightened awareness of data privacy rights, the adoption of advanced technologies such as blockchain and the Internet of Things (IoT) in banking, and the growing BFSI (Banking, Financial Services, and Insurance) sector. Major trends in the forecast period include homomorphic encryption, quantum-resistant cryptography (QRC), the utilization of blockchain's distributed ledger technology, AI-powered threat detection and anomaly identification, as well as scalable and flexible encryption solutions.

The anticipated surge in cyberattacks is set to drive the growth of the banking encryption software market. Cyberattacks encompass malicious activities targeting computer systems, networks, and digital devices with the intent to compromise security, steal sensitive information, disrupt operations, or cause harm. Banking encryption software plays a crucial role in safeguarding financial data and communications, mitigating cyberattack risks, ensuring proper key management, frequent software updates and patches, resistance against social engineering attacks, and the implementation of a multi-layered security strategy. In June 2023, Embroker Insurance Services LLC reported a projected doubling of IoT cyber-attacks by 2025. Additionally, the Annual Cyber Threat Report 2021-2022 by the Australian Cyber Security Centre revealed a significant 13% increase, with Australia recording 76,000 cybercrime reports in 2022 compared to the previous financial year. Consequently, the rise in cyberattacks is steering the growth of the banking encryption software market.

The uptick in digital transactions is expected to propel the banking encryption software market. Digital transactions, involving financial activities conducted electronically through digital devices and online platforms, have witnessed a surge with the growing popularity of digital banking. This trend has expanded the attack surface for cybercriminals, necessitating the use of encryption to secure financial transactions and protect customer privacy. According to the Consumer Financial Protection Bureau, U.S. consumers' expenditures using Google Pay at stores reached $65.2 billion in 2022, a substantial increase from the $24.8 billion recorded in 2021. Thus, the rise in digital transactions is a driving force behind the growth of the banking encryption software market.

Technological advancements represent a prominent trend in the banking encryption software market, with major companies introducing innovative products to maintain their market positions. For instance, in October 2022, Mastercard Inc. unveiled a novel crypto service focused on risk management. Leveraging blockchain data, artificial intelligence, and public crypto transaction records, the service identifies risks related to crypto exchange crime within the Mastercard network, aiding banks in detecting and preventing fraud on crypto merchant platforms.

Major players in the banking encryption software market are actively developing innovative solutions, such as endpoint security solutions. Endpoint security solutions encompass a comprehensive cybersecurity approach designed to protect various endpoints or devices within a network. Broadcom Inc., a U.S.-based semiconductor company, launched 'Adaptive Protection' in June 2021, providing advanced security measures that are automated and tailored to each customer's unique environment while ensuring zero disruption to productivity. Adaptive Protection enables enterprises to proactively anticipate cyberattacks and prevent breaches.

In September 2022, SandboxAQ, a U.S.-based software development company, acquired Cryptosense for an undisclosed amount. This acquisition positions SandboxAQ to accelerate the global rollout of its post-quantum cryptography products for businesses and governmental organizations. Cryptosense, a France-based cybersecurity and encryption analysis software company, offers solutions to enhance organizations' encryption practices and protect against emerging threats.

Major companies operating in the banking encryption software market report are Microsoft Corporation, Dell EMC, Intel Corporation, International Business Machines Corporation, Cisco System Inc., Broadcom Inc., Hewlett Packard Enterprise, Thales Group, NetApp Inc., Gemalto, Digital China Holdings Limited, Check Point Software Technologies Ltd., McAfee LLC, Trend Micro Inc., Proofpoint Inc., Zscaler, Eset Spol S.r.o., Wondershare Technology Co. Ltd., F-Secure, CipherCloud, Seclore, Sophos Ltd., Digital Guardian, WinMagic, PKWARE Inc., Skyhigh Networks, InfoSec Global Inc., Axur, Symplified Inc., Inova Solutions Inc.

North America was the largest region in the banking encryption software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the banking encryption software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the banking encryption software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary components of banking encryption software encompass software and services. Software constitutes a compilation of instructions, data, or computer programs utilized to operate machines and perform specific activities. Various encryption types include symmetric encryption, asymmetric encryption, and hashing algorithms. Functions may involve disk encryption, communication encryption, file or folder encryption, cloud encryption, and others. These are implemented through various deployment models such as cloud and on-premise and cater to enterprise sizes ranging from large enterprises to small and medium enterprises.

The banking encryption software market research report is one of a series of new reports that provides banking encryption software market statistics, including banking encryption software industry global market size, regional shares, competitors with a banking encryption software market share, detailed banking encryption software market segments, market trends, and opportunities, and any further data you may need to thrive in the banking encryption software industry. This banking encryption software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The banking encryption software market includes revenues earned by entities by providing data encryption solutions, secure communication platforms, tokenization services, key management systems, and hardware security modules. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.