Encryption Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The Encryption Software Market is expected to register a CAGR of 15.57% over the forecast period (2022-2027). Encryption software's primary aim is to increase data protection from unauthorized users. Additionally, more businesses all around the world are using encryption to meet their rising worries about data security and compliance with privacy laws. The rise in regulation standards on data transfer and its security, growth in the volume of the strength of cyber attacks, and mobile thefts are the major factors driving the market.

• There is a growing need on the market as end-point data security solutions become more prevalent in the telecommunications and IT sectors. The market share of encryption software is increasing, which is consistent with the rise in cyberattacks against businesses. Implementing encryption software is crucial for defense against the growing threat of cyberattacks and for maintaining the security of private data.
• The development of the encryption software market share is fueled by a rise in complexity, data breaches, and organizational compliance regulations. Additionally, the market is growing due to the rapid use of Bring Your Own Device (BYOD) policies and rising mobility.
• In addition, due to rapid digitalization and expanding internet usage, both companies' intellectual property and user-generated content are now vulnerable to theft and infringement. Businesses are obligated to put measures in place to secure the data due to these security threats. A rise in demand for encryption software is projected throughout the projection period as a result of the ability of businesses to protect their sensitive data and intellectual property.
• However, in some regions, restricted adoption of encrypted devices and a lack of understanding about encryption software are restricting the market share growth of encryption software. On the other hand, the increase in demand for cloud-based encryption software is anticipated to create attractive market expansion prospects.
• As a result of COVID-19, rapid digital transformation techniques have increased the amount of data kept in the clouds, leading to additional difficulties with performance, availability, and security that call for the usage of encryption software solutions and services.
• Additionally, as a result of COVID-19, organizations are focused more on centrally managing various cloud resources. Data security is therefore taking on more significance. The demand for encryption software for security assessments is likely to increase even more globally for threat intelligence during the pandemic due to the rising use of BYOD and the presence of regulatory compliances, as well as the fact that the majority of businesses continue to use hybrid work arrangements and work from home policies.

Scope of the Report

Organizations employ encryption software as a tool to safeguard data transfers from one remote location to another. Encryption software's main goal is to increase data protection from unauthorized users. Additionally, more businesses all around the world are using encryption to meet their rising worries about data security and compliance with privacy laws.

The Encryption Software Market is Segmented By Component(Software, Service), By Deployment Model (On-premise, Cloud), By Enterprise Size (Large Enterprises, Small and Medium Enterprises), By Function (Disk Encryption, Communication Encryption, File/Folder Encryption, Cloud Encryption, Database Encryption), By Industry Vertical (IT & Telecommunication, BFSI, Healthcare, Government, Retail, Education) and Geography.

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Key Market Trends

IT & Telecommunication to Hold a Significant Share

• The large quantity of personal data stored on mobile devices, satellites, and the Internet makes the telecommunications sector a major target for hackers. IT deals with using computers and networking equipment to create, process, store, and safeguard many types of electronic data. Regulations and security concerns it has generated have an impact on how the businesses in the vertical operate. As a result, in order to deliver services to their clients without interruption, communication service providers have adopted encryption technology.
• Online financial transactions have greatly risen in this sector and are now very profitable targets for hackers. To offer risk-free services to their clients, the businesses in this area are implementing encryption solutions.
• Additionally, they are employing cloud and mobile technology to provide encrypted services to their clients. Users may now safely save their sensitive information on their mobile devices and access it over the cloud thanks to encryption software. In addition to aiding in compliance with rules like AES, PCI DSS, and GDPR, encryption technologies enable telecommunications firms to improve their services and give customers safe information.
• Further, several telecommunication companies are adopting encryption technology to deliver high secure data. For instance, in January 2022, in order to provide a quantum-safe data centre connection, Nokia teams up with IP Telecom. In order to provide highly secure fiber optic data centre interconnect (DCI) cloud connection among Portuguese metro regions, IP Telecom has expanded its fiber-optic network. Nokia was chosen to deliver a network solution that consists of several 100Gbps and 200Gbps wavelengths, is encrypted, and is resistant to attacks from quantum computers.
• IdTheftCenter reports that data breaches have increased overall by 68% since 2020, to 1,862. Compared to the previous all-time high, the new record number of data compromises is up 23% (1,506). In 2021, there were 184 data breaches with 22,697,765 victims from the professional services industry, which includes IT businesses.

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