Market Trends of Network Encryption Industry
Telecom and IT Sector is Expected to Hold a Significant Share of the Market
- Some of the main things pushing the IT and telecom industries worldwide to use network encryption are the growing use of the cloud, increasing investment in optical communication, growing network data breaches, and strict government regulations.
- Furthermore, the growing adoption of a private network, trends in network automation, and the rollout of 5G networks are expected to significantly increase network traffic, requiring more advanced security measures. Network encryption will keep sensitive data safe on these networks, opening up new business opportunities.
- According to VIAVISION, as of April 2023, with the highest 5G network access, it was available in 503 cities in the United States; with 5G availability in 356 cities, China followed in second.
- Emerging ICT technologies such as smart factories, intelligent transportation systems, the 5th generation of cellular networks and beyond, the Internet of Things, distributed ledger technologies, and quantum-safe communication need technical and organizational measures to address various threats and risks.
- The deployment of 5G technology will probably lead to increased Internet of Things (IoT) devices connected to networks, opening up new chances for hackers to conduct more extensive and sophisticated assaults. According to Ericsson, Total mobile data traffic is expected to grow from 26 EB per month in 2023 to 73 EB per month in 2029, growing at a CAGR of 19 percent. All these factors are expanding the scope of network automation among telecom vendors, fueling the demand in the studied market.
- Furthermore, the innovation expansion launch and adoption of security services across the globe have further boosted the demand for network encryption techniques. Threats against telecommunications result from a combination of typical IP-based threats in an industry with legacy technology. As 5G technology advances, the threat surface will only expand, giving attackers more opportunities. This leaves cybersecurity teams at telecom companies looking for ways to leverage new technology and automation to streamline workflows to stay ahead of attackers in the face of new threats and an increasing number of alerts to triage.
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North America is Expected to Hold Significant Market Share
- North America is a well-equipped region in terms of technology. It has a significant market share because of developed economies like the United States and Canada, and it has the right platforms for businesses of all sizes to follow government rules and regulations.
- The government of North America has put in place rules that require sensitive data to be protected while in transit. This has driven the need for network encryption solutions to meet these regulatory requirements.
- Furthermore, in September 2023, Arqit Quantum Inc., one of the global leaders in quantum-safe encryption, and Exclusive Networks North America, a global trusted cybersecurity specialist for digital infrastructure, announced an agreement for Arqit’s unique Symmetric Key Agreement Platform. Joining Networks’ portfolio of vendors and channel partners can provide Arqit’s technology that protects against current and future cyber threats, including the risk from quantum computing.
- As the tech industry in the region continues to grow, there is more demand for network encryption solutions. This is because cloud computing is becoming more popular, and organizations want to protect sensitive data while it is being sent to and from the cloud. The companies also spend money on research and development to develop more advanced ways to encrypt networks. This investment is contributing to the growth of the industry.
- While the recently amended EARN IT Act would leave strong encryption on unstable ground if passed into law, The Lawful Access to Encrypted Data Act (LAEDA) is a direct assault on the tool millions of people rely on for personal and national security each day.
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