Cloud Encryption Market Size

Cloud Encryption Market Overview

The Cloud Encryption Market is projected to grow from USD 5.45 billion in 2024 to USD 33.52 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 25.47% during the forecast period (2024 - 2032). Additionally, the market size for Cloud Encryption was valued at USD 4.21 billion in 2023.

Increasing data security concerns, growing adoption of cloud services and increasing adoption of IoT devices are the key market drivers enhancing market growth.

Cloud Encryption Market Trends

Growing concern over data security driving the market growth

With more and more data being created and stored in the cloud, there is a growing concern over the security of this data. Sensitive data such as personal information, financial data, and intellectual property can be vulnerable to cyber-attacks, theft, or accidental exposure. Cloud encryption provides a secure way to protect this sensitive data from unauthorized access, ensuring it is only accessible to authorized users with the right credentials. As a result, the demand for cloud encryption solutions is expected to grow as businesses seek to secure their data in the cloud and protect themselves against potential threats. In addition, the adoption of bring-your-own-device (BYOD) policies and the Internet of Things (IoT) has also contributed to the increasing volume of sensitive data being stored in the cloud. Cloud encryption can help protect data on these devices, ensuring that sensitive information is not compromised.

The growing concerns over data privacy and security have increased the demand for cloud encryption solutions. Cloud encryption provides a secure way to protect sensitive data from unauthorized access, ensuring that it remains confidential and secure even if unauthorized individuals or cybercriminals access it. Cloud encryption also provides businesses with compliance and regulatory requirements, such as the Payment Card Industry Data Security Standard (PCI DSS) and General Data Protection Regulation (GDPR). The cost-effectiveness of cloud encryption is also driving demand for cloud encryption solutions. With cloud encryption, businesses can secure their data without investing in expensive hardware and infrastructure. This makes cloud encryption an attractive option for businesses of all sizes, especially those with limited budgets. Thus, driving the Cloud encryption market revenue.

IoT devices are becoming increasingly prevalent in various industries, including healthcare, manufacturing, transportation, and smart cities. These devices generate vast amounts of data, including personal, financial, and confidential information, often stored in the cloud. However, the security of IoT devices has become a major concern, with cybercriminals targeting these devices to gain access to sensitive data. IoT devices are often vulnerable to cyber-attacks due to their limited computing power and security features, making them easy targets for hackers. Therefore, cloud encryption has become an essential solution for protecting data generated by IoT devices.

Cloud encryption provides a secure way to encrypt data generated by IoT devices before it is transmitted and stored in the cloud. This assure that sensitive information remains private and cannot be accessed by unauthorized users. Cloud encryption can also help to protect IoT devices from hacking attempts by securing communication channels between devices and cloud servers. Furthermore, cloud encryption can assist with compliance and regulatory requirements, such as the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR). These regulations require businesses to ensure that personal data is protected and secure, and cloud encryption can help to achieve these requirements. Therefore, the increasing adoption of IoT devices drives the demand for cloud encryption solutions.

Cloud Encryption Market Segment Insights

Cloud encryption Components Insights

Based on components, the Cloud Encryption market segmentation includes solutions and services. The services cloud encryption segment dominated the market. This is due to the growing demand for expertise and support services in implementing and managing cloud encryption solutions and the cost savings and convenience of managed services. As businesses continue to adopt cloud encryption solutions to protect their sensitive data, the services segment is expected to remain a significant driver of growth in the cloud encryption market.

Cloud encryption Service Model Insights

Based on the service model, the Cloud Encryption market segmentation includes infrastructure-as-a-service and software-as-a-service. The software-as-a-service segment dominated the market. This is attributed to the ease of implementation and management, cost-effectiveness, and scalability it provides to businesses. As the demand for cloud encryption solutions continues to grow, the SaaS segment is expected to remain a significant market growth driver.

Cloud encryption cloud deployment Insights

Based on cloud deployment, the Cloud Encryption market segmentation includes public, private, and hybrid. The public segment dominated the market. This is because public cloud encryption solutions are typically more cost-effective than private cloud or on-premise solutions, as users only pay for the required services. The provider is responsible for the hardware and infrastructure required to deliver the services. Public cloud solutions for encryption can offer greater scalability and flexibility, as users can easily adjust their services based on their changing needs. This can be particularly beneficial for businesses that experience seasonal fluctuations in their data storage and encryption needs.

Cloud encryption Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Cloud encryption market will dominate. The increasing adoption of cloud-based applications and services in North America has led to a growing need for secure data storage and transmission. This has resulted in a significant demand for cloud encryption solutions in the region. The growing trend of bring-your-own-device (BYOD) policies, remote work, and mobile workforce have also contributed to the need for cloud encryption to protect sensitive data accessed from multiple locations and devices.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Europe's cloud encryption market accounts for the second-largest market share due to the stringent data protection regulations and compliance requirements in Europe, such as GDPR and the ePrivacy regulation, which have increased the demand for cloud encryption solutions that can help businesses meet these requirements. The need for secure data storage and transmission in industries such as healthcare, finance, and the government has also contributed to the growth of the cloud encryption market in the region. Further, the German cloud encryption market held the largest market share, and the UK cloud encryption market was the fastest-growing market in the European region

The Asia-Pacific cloud encryption Market is anticipated to develop at the fastest CAGR from 2023 to 2032. The market is driven by the increasing adoption of cloud-based services and applications, strict data protection regulations, and the need for secure data storage and transmission in various industries. Moreover, China’s Cloud encryption market held the largest market share, and the Indian Cloud encryption market was the fastest-growing market in the Asia-Pacific region.

Cloud Encryption Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Cloud encryption market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Cloud Encryption industry must offer innovative products to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Cloud Encryption industry to benefit clients and increase the market sector. In recent years, the Cloud encryption industry has offered some of the most significant advantages to the market. Major players in the Cloud encryption market, including Vaultive Inc. (U.S.), Thales e-Security (France), Trend Micro Incorporated (Japan), Gemalto N.V. (Netherlands), HyTrust Inc. (U.S.), Sophos Group Plc (U.K.), CipherCloud (U.S.), Symantec Corporation (U.S.), Netskope Inc. (U.S.), Skyhigh Networks (U.S.) and others, are effort to increase market demand by investing in research and development operations.

Thales e-Security, now known as Thales Digital Identity and Security, is one of the leading companies in providing advanced data protection solutions, including cloud encryption and key management, to organizations across various industries. Their cloud encryption solutions help customers secure their data in multi-cloud environments by providing end-to-end encryption, access controls, and policy-based key management. For instance, in October 2021, Thales partnered with Google Cloud to provide customers with advanced key management and encryption capabilities.

CipherCloud is a leading provider of cloud security solutions, including cloud encryption, data protection, and threat prevention services. The company's solutions help organizations protect their sensitive data as it moves to and from cloud applications and environments. It offers a comprehensive suite of security services, including encryption, tokenization, and data loss prevention, to help customers meet compliance and regulatory requirements. For instance, in May 2021, Lookout, Inc. acquired CipherCloud, a leading cloud-native security company that operates in the emerging secure access service edge (SASE) market.

Key Companies in the Cloud encryption market include

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  Vaultive Inc. (U.S.)

  
  


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  Thales e-Security (France)

  
  


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  Trend Micro Incorporated (Japan)

  
  


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  Gemalto N.V. (Netherlands)

  
  


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  HyTrust Inc. (U.S.)

  
  


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  Sophos Group Plc (U.K.)

  
  


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  CipherCloud (U.S.)

  
  


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  Symantec Corporation (U.S.)

  
  


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  Netskope Inc. (U.S.)

  
  


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  Skyhigh Networks (U.S.)

  
  

Cloud Encryption Industry Developments

In April 2020, Accenture acquired Symantec's cyber security services business from Broadcom Inc. The acquisition enhances Accenture Security and improves its capability to help organizations detect, anticipate, and respond to cyber threats.

In September 2020, IBM announced the launch of IBM Cloud Hyper Protect Crypto Services, a new cloud encryption service that provides highly secure key management and data encryption capabilities.

In October 2020, Fortinet launched its FortiGate 2600F firewalls, which include advanced security features such as cloud encryption and zero-trust access control.

Cloud Encryption Market Segmentation

Cloud encryption Components Outlook

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  Solution

  
  


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  Services

  
  

Cloud Encryption Service Model Outlook

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  Infrastructure-as-a-Service

  
  


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  Software-as-a-Service

  
  

Cloud Encryption Cloud Deployment Outlook

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  Public

  
  


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  Private

  
  


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  Hybrid

  
  

Cloud Encryption Regional Outlook

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  North America

  
  
  
  
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    US

    
    
  
  
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    Canada

    
    
  
  
  
  


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  Europe

  
  
  
  
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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  


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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America