Market Trends of Encryption Software Industry
This section covers the major market trends shaping the Encryption Software Market according to our research experts:
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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Asia-Pacific to Witness CAGR Growth in the Forecast Period
- End-to-end encryption has been advocated by the Indian government as a way for internet intermediaries to actively monitor online content and identify the sources of private conversations. To provide effective data security in the cloud, the majority of manufacturers offer application-based software for cloud encryption. The rapid rise is a result of the country's tightening laws and developing innovations in financial markets' new technology.
- For example, in February 2021, the Reserve Bank of India (RBI) published its Master Direction on Digital Payment Security Measures, requiring multifactor authentication, encryption, digital certificates, and other controls to safeguard digital payment applications and procedures.
- Asian governments, including those in China, Singapore, and Japan, are spending a sizable portion of their federal budgets to build up their national cybersecurity frameworks. The market is expanding as a result of these government initiatives, financial backing, and R&D that have contributed to the development of encryption services and products.
- Singapore is attempting to increase its capacity for quantum computing through new initiatives to create relevant skill sets and quantum gadgets. It emphasizes the necessity of doing this to maintain the reliability and resistance of encryption technology to brute force assaults. For instance, in May 2022, the Singapore government invested USD 16.77 million to support three national platforms for up to 3.5 years.
- In the Asia Pacific, the lack of qualified cybersecurity specialists creates a need for consulting services, which eventually propels the market for encryption software to develop at a considerable CAGR over the forecast period. Several industry participants provide consultancy services to properly implement encryption software in the area.
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