NEW YORK, July 22, 2024 /PRNewswire/ — The global cloud encryption software market size is estimated to grow by USD 25.39 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 60.8% during the forecast period. Increasing use of in-built cloud encryption solutions is driving market growth, with a trend towards increasing adoption of BYOD. The strongest encryption software is generally considered to be OpenVPN using AES-256 encryption, alongside other advanced options like VeraCrypt for full-disk encryption, and PGP (Pretty Good Privacy) for securing emails. These solutions offer robust security and are widely trusted in the industry.
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Cloud Encryption Software Market Scope
Report Coverage
Details
Base year
2023
Historic period
2018 – 2022
Forecast period
2024-2028
Growth momentum & CAGR
Accelerate at a CAGR of 60.8%
Market growth 2024-2028
USD 25394 million
Market structure
Fragmented
YoY growth 2022-2023 (%)
43.04
Regional analysis
North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution
North America at 36%
Key countries
US, China, UK, Germany, and Japan
Key companies profiled
Alphabet Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., Dell Technologies Inc., F Secure Corp., Forcepoint LLC, Hewlett Packard Enterprise Co., Hitachi Ltd., Intel Corp., International Business Machines Corp., Intuit Inc., Lookout Inc., McAfee LLC, Microsoft Corp., Netskope Inc., Proofpoint Inc., Secomba GmbH, Sophos Ltd., Thales Group, and Trend Micro Inc.
However, high capital investment for deployment poses a challenge. Key market players include Alphabet Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., Dell Technologies Inc., F Secure Corp., Forcepoint LLC, Hewlett Packard Enterprise Co., Hitachi Ltd., Intel Corp., International Business Machines Corp., Intuit Inc., Lookout Inc., McAfee LLC, Microsoft Corp., Netskope Inc., Proofpoint Inc., Secomba GmbH, Sophos Ltd., Thales Group, and Trend Micro Inc..
Market Driver
The Bring Your Own Device (BYOD) trend allows employees to use their personal devices at work to access corporate information. This policy brings benefits such as reduced IT department workload and increased productivity, leading to operational cost savings for organizations. However, it also introduces security challenges. With employees sharing confidential information through social media and personal email accounts, monitoring cloud-based applications and social media platforms becomes difficult. The risk of security breaches increases, making cloud encryption software a necessary solution. This market is anticipated to grow due to the rising demand for securing sensitive data in the BYOD era.
The Cloud Encryption Software Market is experiencing significant growth due to increasing data security concerns across various industry verticals. Sectors like Life Sciences, Government, Automotive, Food Manufacturing, Consumer Goods, Electronics, Education, and IT & Telecom are investing heavily in data security services to protect sensitive information. With the rise of mobile technology and advancements in smartphones and cloud computing, data security has become a top priority. Encryption software is essential for securing intellectual property, preventing commercial espionage, and mitigating risks from theft & losses. Deployment options include on-premise and cloud-based solutions for email, DVDs, cloud storage, and disk encryption. Big data analytics, internet penetration, and cloud services are driving the demand for advanced data protection against cyber threats, including ransomware attacks, insider threats, and unauthorized access. Large enterprises in sectors like Healthcare, Aerospace & Defense, and Retail are particularly vulnerable to these risks and are turning to encryption software for advanced data protection. Quantum-safe encryption and quantum computing are emerging trends to counteract the increasing threat from cybercriminals.
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Market Challenges
Cloud encryption software is a crucial investment for businesses seeking to secure their data in the cloud. However, the cost of deployment is a significant challenge for vendors. This expense includes software licensing, system design and customization, implementation, employee training, and ongoing maintenance. After purchasing the license, organizations must allocate resources for proper implementation and employee training. Furthermore, the cost of cloud encryption software includes hidden expenses, such as training programs to optimally use the software. Effective implementation necessitates an in-house IT team for management and troubleshooting, increasing the overall cost. The substantial investment required for cloud encryption software may deter some enterprises from adopting in-house cybersecurity solutions, potentially hindering market growth during the forecast period.In today’s digital world, businesses face numerous challenges when it comes to data security, particularly in the context of cloud encryption. Strict regulatory standards require companies to protect critical data, ensuring compliance with data protection standards. Performance and availability are crucial, but so is security, as data loss, secure data transfer, and cyberattacks pose significant risks. Encryption software providers must address these challenges while dealing with budget restrictions and the increasing use of mobile technology, which brings new threats such as identity theft, phishing schemes, and hacking. Telecommunications sectors and communication service providers are particularly vulnerable to cyberattacks, making cybersecurity a top priority. End-to-end encryption is essential for online financial transactions, and the Indian government and internet intermediaries have established national cybersecurity frameworks to address these issues. Consulting services from Global Technology Services and Global Business Services, along with cybersecurity products and services, can help businesses navigate these challenges and protect their IT spending from fraud risk. Computer technology companies offer software solutions for endpoint protection, network protection, mainframe security, application security, and data security. Advanced fraud protection is also crucial in this landscape. Overall, the need for qualified cybersecurity professionals and consulting services continues to grow as businesses strive to stay ahead of evolving cyber threats.
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Segment Overview
This cloud encryption software market report extensively covers market segmentation by
End-user 1.1 BFSI1.2 Manufacturing1.3 Professional services1.4 Healthcare1.5 OthersType 2.1 Large enterprise2.2 SMEGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa
1.1 BFSI- The Cloud Encryption Software market is growing as more businesses adopt cloud solutions for data storage. Encryption software provides an essential layer of security by encoding data before it is transmitted or stored in the cloud. This helps protect against data breaches and unauthorized access. Major players in this market include IBM, Microsoft, and Amazon Web Services, who offer robust encryption solutions to meet various business needs. These companies invest in research and development to provide advanced features, such as key management and multi-factor authentication, ensuring data security in the cloud environment.
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Learn and explore more about Technavio’s in-depth research reports
The global Talent Management Software Market is experiencing robust growth due to increasing demand for employee engagement and retention solutions. Similarly, the global Software-Defined Storage (SDS) Market is expanding rapidly, driven by the need for cost-effective and scalable storage solutions. The global User Provisioning Market is also on the rise, fueled by the growing emphasis on security and compliance in user access management. These markets are set to witness significant advancements as organizations continue to adopt innovative technologies to enhance operational efficiency and data management.
Research Analysis
The Cloud Encryption Software market is witnessing significant growth due to the increasing adoption of cloud services and the resulting data security concerns. Cyber threats such as unauthorized access, ransomware attacks, and commercial espionage pose a major risk to individuals and organizations, making data encryption essential. Cloud encryption software provides quantum-safe encryption, ensuring data remains secure even against quantum computing attacks. Stakeholder information, regulatory standards, and critical data require the highest level of protection. Digital transformation methods, including mobile technology advancements in smartphones and hardware and software, necessitate robust encryption solutions. Performance, availability, and security are key considerations, with encryption ensuring data remains accessible and secure. Data security concerns continue to escalate, with theft & losses and sensitive data at risk. Cloud encryption software offers a vital solution, mitigating risks and safeguarding valuable information.
Market Research Overview
Cloud encryption is a critical component of advanced data protection in the digital age, as cloud services become increasingly popular for individuals and organizations. With the rise of cyber threats such as unauthorized access, ransomware attacks, insider threats, and fraud risk, the need for robust encryption solutions has never been greater. Quantum-safe encryption, a method that protects data from quantum computing attacks, is gaining traction as a key defense against advanced cyberattacks. Industries like healthcare, aerospace & defense, IT & telecom, retail, and the telecommunications sector are particularly vulnerable to data loss and cyberattacks. Regulatory standards, such as HIPAA and GDPR, impose stringent requirements for data protection. Encryption software providers offer solutions for end-to-end encryption, secure data transfer, and compliance with data security standards. Performance, availability, and security are top priorities for large enterprises, which are investing heavily in IT spending to address data security concerns. Mobile technology advancements, including smartphones and cloud computing, have expanded the attack surface for hackers, making encryption essential for protecting sensitive data. Budget restrictions and the need for consulting services and global technology and business services have led to a growing market for cybersecurity products and services, including encryption software, endpoint protection, network protection, mainframe security, application security, and data security services. Industry verticals like life sciences, government, automotive, food manufacturing, consumer goods, electronics, and education are all investing in encryption software to protect intellectual property, sensitive data, and critical infrastructure from cyber threats. The Indian government and internet intermediaries are also implementing national cybersecurity frameworks to address the growing threat landscape. Qualified cybersecurity professionals are in high demand to help organizations deploy encryption software and navigate the complex regulatory landscape. Consulting services and global financing offerings are available to help organizations overcome budget restrictions and implement effective encryption strategies.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
End-userBFSIManufacturingProfessional ServicesHealthcareOthersTypeLarge EnterpriseSMEGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
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SOURCE Technavio