The global encryption software market was valued at USD 3,030 million in 2017 and is anticipated to grow at a CAGR of 16.2% during the forecast period.
Encryption software is a security program capable of performing encryption and decryption of a data stream at rest or in transit. Encryption software provides encryption of the content of a data object, file, network packet or application to secure and protect it from unauthorized users. This software encrypts each data packet or file with a key, which is required by the receiver for decryption to its original form. This key is generated by the software and shared between the sender and receiver. Use of encryption software protects data, even if compromised as it cannot be retrieved without the encryption key. The different types of encryption software used for data protection include file encryption, email encryption, disk encryption, and network encryption among others.
The increasing need for data privacy, and rising concerns regarding critical data loss to drive the growth of encryption software market. Similarly, the growing trend of BYOD and IOT further supports market growth. Furthermore, growing adoption of cloud, big data, and virtualization further increases the need for encryption to safeguard critical data, and introduction of regulations to increase adoption of encryption software, increasing mobility are factors expected to support encryption software market growth during the forecast period. Other factors driving the market growth include technological advancements, growing number of data breaches, and increasing need to protect intellectual property.
However, high costs and complexities associated with advanced encryption solutions, and lack of awareness among small and medium enterprises hinder encryption software market growth. Also, growing demand from emerging economies, increasing adoption of encryption software by the BFSI sector, and rising demand for cloud-based encryption solutions are factors expected to provide numerous growth opportunities in the coming years.
The global encryption software market is segmented on the basis of deployment model, application, organization size, end-user, and region.
On the basis of deployment model, the market is segmented into on-premise, and cloud-based. The cloud-based segment is expected to grow at the highest rate during the forecast period owing to growing adoption of virtualization, IoT, and bog data analytics. The growing demand of cloud-based encryption software from BFSI, and healthcare sector supports the growth of this segment.
The application segment is bifurcated into file encryption, disk encryption, database encryption, cloud encryption, communication encryption, and others. The disk encryption segment dominated the global market in 2017. However, the cloud encryption segment is expected to exhibit significant growth during the forecast period.
The organization size segment is divided into large enterprises, and small and medium businesses. The small and medium sized businesses segment is expected to grow significantly during the forecast period owing to increasing awareness regarding the benefits of encryption software, and introduction of affordable encryption solutions by market players aimed towards needs of small businesses.
The end-user segment is categorized into BFSI, healthcare, aerospace and defense, Government and public utilities, retail, and others. The BFSI segment accounted for the highest share in the market in 2017. The greater need to protect critical banking and financial data of consumers increases the demand for encryption software from this segment.
Geographically, the encryption software market is segmented into North America, Europe, APAC and South America, and MEA. North America is further segmented into U.S., Canada, and Mexico. Europe is divided into Germany, UK, Italy, France, and Rest of Europe. Asia-Pacific is bifurcated into China, India, Japan, and Rest of Asia-Pacific. North America accounted for the largest share in the Global Encryption Software market in 2017. The increasing spending on data protection in BFSI and defense sectors in the region promotes market growth in the region. The increase in number of cyber-attacks, and growing trend of BYOD further support the growth of encryption software market in the region.
The leading players in the encryption software market include Microsoft Corporation, Symantec Corporation, IBM Corporation, EMC Corporation, Cisco Systems, Inc., Intel Security, Check Point Software Technologies Ltd., Oracle Corporation, Trend Micro, Inc., and Sophos Group PLC among others. These leading players in the market are introducing innovative products in the market to cater to the consumers. Global players are entering new markets in developing regions to expand their customer base and strengthen market presence.