Market Overview

Global Encryption Software Market size was valued at around 15.60 billion in 2023 and is expected to reach a value of USD 58.87 billion by 2032, at a CAGR of 15.9% over the forecast period (2024–2032).

The Forecast Period of

The global encryption software market is one of the most integral areas that make up the firmament of cybersecurity, mainly driven by an increasing importance attached to data protection in an increasingly rapidly digitalized world and rising cyber threats. Encryption software codes data into unreadable text from outsiders; however, within applications, it ensures confidentiality, integrity, and security. All kinds of organizations, from financial services, healthcare, and retail to governments, are implementing encryption software to protect the privacy of sensitive information that contains personal details, financial transactions, intellectual properties, and critical communications. Cloud computing, IoT devices, and remote working models have also provided a strong motive for the adoption of strong encryption solutions.

Primarily, the increase in data breaches and cyber-attacks has driven demand for the market of encryption software. Organizations also have taken greater security measures now. Furthermore, strict regulatory requirements and compliance by the General Data Protection Regulation, Health Insurance Portability and Accountability Act, California Consumer Privacy Act, and several others have left businesses with the option of leveraging advanced encryption technology to serve law and ethics' purposes. Again, encryption software plays an important role in dispelling concerns for consumers related to data privacy and trust as their issues with trust become highly pertinent for reputation business and retaining a customer base.

Advances in technologies have highly impacted the encryption software market to develop more advanced solutions to be applied within organizations. Developments in quantum computing and artificial intelligence perpetually influence and change encryption solutions in making the tools more powerful to respond to newly emerging threats. Applications that newly offer end-to-end encryption within communications, safe file sharing services, and digital payment solutions also manifest the increased application of encryption within daily digital uses.

Such challenges as complexities associated with deploying encryption systems and some performance-related effects of encryption system deployment have somewhat suppressed the market's growth. However, furthering of such processes intended at making encryption systems deployable, which at the same time is accompanied by a user-friendly interface, has decreased such problems to some extent. Further, such collaborations among the providers of the technologies and cyber security firms in conjunction with governmental influence have helped it be applied more generally as a practice across all organizations.

Key Findings:

In February 2023, Irdeto, a cybersecurity provider for digital platforms, has launched ActiveCloak for Media (ACM), the latest iteration of its software development kit (SDK). The updated solution includes several layers of security to prevent unauthorized users from extracting content encryption keys from devices.

In January 2023, all new objects uploaded to AWS are encrypted automatically with the help of Amazon Simple Storage Service, which is S3. Unless a different encryption method is provided, S3 will encrypt every new object using SSE-S3. Each time an object is uploaded, a new key is generated and the data is encrypted once more using a root key all of which is invisible to the user.

In November 2022, the latest version of Cloaked Search has been developed by IronCore Labs, a data security solution provider for modern applications in the cloud. With this encrypted search proxy, data security in Elasticsearch and OpenSearch is ensured. Fresh features in the updated version of Cloaked Search enable current and potential users to enhance the application-layer encryption capacities and the ways of safe-guarding their sensitive data inside the search services.

In May 2021, the company, which is funded by UKRI, plans to develop 2,000 high-tech employments in the UK while working on their encryption technology. This comes after the company had successful fundraising of investments up to USD 400 million. In the expansion process, Arqit has indicated that it will construct two satellites in the UK by 2023. These satellites are expected to make possible the company's quantum cybersecurity platform, ensuring safe communications and a global presence.

Market Drivers

Stringent regulatory standards and data privacy compliances

• Most standards and the compliance rules in use today place a high priority on protection for private data when it is at rest, in transit across networks, and during transactions. Suitably using encryption technologies improve the overall security posture while it complies with data security and privacy laws. Encryption software providers offer user access controls and data encryption capabilities, enabling clients to adhere to the many data security and privacy standards, including PCI-DSS, HIPAA, GDPR, and the California Consumer Privacy Act. Industry verticals like BFSI, retail, and healthcare are driving the requirement for encryption solutions because they must comply with regulations on data protection such as PCI-DSS and HIPAA.
• Europe's data privacy rules are controlled by the groundbreaking GDPR rule. It sets rules for companies that collect, maintain, and utilize personal data of EU citizens. When the GDPR requirements are breached, organizations must pay huge fines. The information security standard, PCI DSS, was established to assist organizations in processing card payments and eliminating credit card fraud. Due to these governmental limitations and regulatory compliance, businesses have to use encryption software and services.

Market Opportunities

Surge in BYOD Usage and IOT Trends

• BYOD policies at workplaces increased recently, and so has the use of mobile and IoT devices at workplaces. This further enhances the odds of data loss for an organization. Therefore, safe data transmission has become pertinent because of encryption software. BYOD usage upsurged illegal data access into sensitive data and the issue of data loss. Encryptions in files and documents are required leading to increasing demand for encryption software. Growing demand by organizations leads to the growth of the encryption software market. More data is being generated and accessed with the help of mobile devices as a result of the wide use of social media, IoT, and the Internet of Everything (lOE) by organizations. Repeated cases of thefts and physical intrusion of BYOD devices on organization property have shot up the usage of encryption software on-premises. Encryption software safeguards data-at-rest against malicious attacks. This is likely to increase the demand for the use of both on-premises and cloud-based encryption software in the next few years.

Market Restraining Factors

High Costs of Encryption Software Solutions

• The biggest cost in the implementation of encryption software solutions is deployment cost. This is the highest cost companies encounter. Software encryption solutions have lowered the risk of data loss by both enterprises and consumers. With the massive explosion of data created by the usage of encryption software, the increase in overhead cost of businesses is high. For instance, an average solution on e-mail encryption would be anywhere between a minimum of 4 USD per month to as high as 10 USD a month for the account depending upon what one would want to need to pay. The bigger the file in terms of megabytes the more cost-prohibitive is the solution.
• Apparently, free internet platforms may lack the experience required to adequately secure private information. The encryption software solution is quite expensive for SMES due to their limited financial capitals. In addition, costs associated with time-bound upgrades and maintenance can lead to an increase in the general cost of doing business for an organization. All these solutions are expensive for low-budget organizations because of per-user license fees, continuous maintenance expenses, and other related soft expenditures such as user technical assistance and encryption software updates. Furthermore, every encryption solution has to be compatible with the IT systems in use today. Altogether, these factors prevent encryption software from being widely used.

Segmentation Analysis

The market scope is segmented because of by Component, by Services, by Application.

By Component

Based on the Component of the market is segmented into Software, Services.

The software segment has dominated in terms of market share in the global encryption software market, considering that encryption software plays an essential role in securing sensitive data through application categories, such as data at rest, data in transit, and data in use. Because of the higher data breaches and cyberattacks, demand for the robust encryption solutions has increased and is using the software to offer data confidentiality and meet stringent requirements with regard to keeping regulatory compliance.

Highly distributed across finance, healthcare, and retail industries in the name of protecting customer and organizational data are file-level encryption, disk encryption, and end-to-end encryption, all being offered as solutions in encryption software. The demand for encryption software has actually risen because it's combined with cloud-based services which have made the cloud environments become a basis for storage and operations. This, by means of increased automation, the simplicity of end-user interfaces and hybrid infrastructures of IT, increases scalability, usability, as well as adoption of encryption.

Services will prove to be an effective enabler for the establishment, configuration, and maintenance of software. Services market presence is going to remain ancillary due to the following reasons: because organizations are expected to invest heavily in core encryption software that protects data directly; the need to have scalable and regulation-compliant encryption solutions has been persistent in the market; hence, growth in the market is going to be primarily facilitated by the segment of software.

By Services

Based on the Services of the market is segmented into Professional Services, Managed Services.

Managed services are the largest category in the services category of the world-wide encryption software market, mainly due to the huge need by companies these days to outsource their encryption and cybersecurity needs to these specialist service providers so that they are able to focus the organizational efforts on core business, at the same time reaping the advantages of secure data protection. The changing nature of threats under the world of cybersecurity will find proper handling by continuous monitoring, management, as well as encryption system maintenance with managed services.

All these have pushed preference further toward managed services because the increasing complexity of encryption solutions, besides the scarcity of skilled cybersecurity professionals, have all pushed the requirement further. These managed services ensure that an organization gains access to expert resources and advanced tools for the implementation, as well as 24/7 support. Hence, with minimal in-house capabilities, one can ensure maximum security levels. In addition, managed service providers are usually scalable and flexible, which is very appealing to SMEs that do not have the resources to manage encryption systems in-house.

Although the professional services, encompassing consulting, implementation, and training, are definitely critical in the initial phase of deploying and tailoring encryption solutions, these services are essentially project-based and time-bound. Managed services ensure the efficient operation of encryption systems and support over a longer period. With more sophisticated threats and stringent regulation, demand for managed services is expected to continue growing to top the line on the encryption software market service list.

Regional Snapshots

By region, Insights into the markets in North America, Europe, Asia-Pacific, Latin America and MEA are provided by the study. As there is more penetration of internet in the region, North America accounted for the largest revenue share of 36.8% in 2022 and maintained a significant position in the market. Moreover, due to the presence of a respected and mature IT and telecom industry, the region's market is also growing. In the forecast period, the Asia Pacific region is expected to expand at the fastest CAGR of 21.2%. A lack of infrastructure in this region for storage makes it quite promising for businesses, making them store data on the cloud. It raises a possibility of theft and data loss, which fuels the need for encryption software.

More significantly, adoption has been led by cloud services, IoT, and BYODs, for a larger regional market. Growth of encryption software would increase due to rapid progress within the manufacturing industry in nations like China and India, alongside healthy retail as well as IT and telecom sectors, throughout the years forecast.

List of Companies Profiled:

• Bloombase
• Cisco Systems, Inc.
• Check Point Software Technologies Ltd.
• Dell Inc.
• IBM Corporation
• McAfee, LLC
• Microsoft
• Oracle
• Sophos Ltd.
• Broadcom
• Trend Micro Incorporated
• WinMagic

Key Industry Developments

In June 2023, Amazon Web Services offers a new encryption option known as dual-layer server-side encryption with keys stored in AWS Key Management Service, commonly referred to as DSSE-KMS. It provides two layers of encryption on the same resource and improves security on anything that is uploaded into an Amazon Simple Storage Service (Amazon S3) bucket. DSSE-KMS enables the use of numerous layers of encryption for data to help customers adhere to regulatory requirements through improved data protection.

In May 2023, by bringing cutting-edge, fully functioning Data-in-Use encryption technology to market, Vaultree significantly enhanced the protection of healthcare data. Together with a leading-edge software development kit and an encrypted conversation tool, Vaultree's technology revolutionizes the space of data encryption. It gives full protection for private patient information, ensuring it is safe in case of breach while preserving productivity and effectiveness.

Report Coverage

The report will cover the qualitative and quantitative data on the Global Encryption Software Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations

Global Encryption Software Market Regional Analysis

North America accounted for the highest xx% market share in terms of revenue in the Encryption Software market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Encryption Software. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Encryption Software companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Encryption Software Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Encryption Software Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 5 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Questions

• How much the global Encryption Software Market valued?
• Which region has the largest share in 2024 for the global Encryption Software Market?
• What are the driving factors for the market?
• Which is the leading segment in the global market?
• What are the major players in the market?

Research Scope of Encryption Software Market

• Historic year: 2016- 2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Billion

Encryption Software Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: