Database Encryption Market

Increasing need for Cloud-based security will drive the market growth

The demand for a hybrid multi-cloud architecture is dramatically growing as data storage grows. Due to increased exposure to data ransomware, theft, and misuse, most organizations must comply with many rules. Additionally, most laws, like the General Data Protection Regulation, emphasize encryption and offer technical and administrative safeguards. This has also sparked the creation of database encryption strategies that support organizations' need for cloud-based security solutions and accelerate the market CAGR for database encryption.

Furthermore, the deployment of encryption has become the way of the future, which has also fueled the growth of physical-based security, including blockchain-based, quantum-computer-based, honey encryption, and IoT device security, among others. The need for database encryption is growing due to the return of keeping sensitive data off of company computers. Additionally, the adoption of hardware wallets for cryptocurrencies and the need to identify data criminals propel the market's expansion.

Additionally, governments of growing countries like China, South Korea, Dubai, India, Singapore, and Japan aim for their economies to flourish, partly because the market is speeding. During the projected period, the overall market expansion will be accelerated by governments' increasing use of big data analytics to improve internet services. It is anticipated that the improvement in people's living standards will fuel the market's growth rate during the anticipated time.

However, due to a surge in data theft and cybercrime occurrences, big data and the Internet of Things (IOTs) have greatly influenced the expanding demand for data security and the increasing use of internet services. IoT enables the integration of radio frequency, Bluetooth, radio-frequency actuators, and sensors in the real world through highly networked services. Additionally, a significant driver fueling the market's expansion during the anticipated period is the increased focus on efficiency that results from growing urbanization. Thus, driving the database encryption market revenue.

The exponential growth of data generated by businesses is a significant factor driving the Global Database Encryption Market Industry. With the rise of big data analytics and the Internet of Things, organizations are collecting vast amounts of sensitive information that require protection. As data breaches become more prevalent, the need for effective encryption solutions is more critical than ever. This trend is expected to sustain a compound annual growth rate (CAGR) of 22.01% from 2025 to 2035, as organizations seek to implement robust encryption measures to secure their databases against unauthorized access and potential threats.

The Global Database Encryption Market Industry is poised for remarkable growth, with projections indicating a market value of 21.0 USD Billion by 2035. This growth trajectory reflects the increasing recognition of the importance of data security across various sectors. The market is expected to experience a compound annual growth rate (CAGR) of 22.01% from 2025 to 2035, driven by factors such as rising cybersecurity threats and regulatory compliance requirements. The anticipated growth underscores the critical role that encryption plays in safeguarding sensitive information in an increasingly digital world.

The increasing frequency and sophistication of cyberattacks is a primary driver for the Global Database Encryption Market Industry. Organizations are compelled to protect sensitive data from breaches, which can lead to significant financial losses and reputational damage. In 2024, the market is valued at 2.36 USD Billion, reflecting the urgent need for robust encryption solutions. As threats evolve, businesses are investing heavily in encryption technologies to safeguard their databases, ensuring compliance with regulations and maintaining customer trust. This trend is expected to accelerate the growth of the market, as organizations prioritize data security in their operational strategies.

The rapid adoption of cloud computing services is driving demand for database encryption solutions within the Global Database Encryption Market Industry. As organizations migrate their data to the cloud, the need for secure data storage becomes paramount. Cloud service providers are increasingly offering encryption as a service, enabling businesses to protect their data in transit and at rest. This shift is reflected in the projected market growth, with estimates indicating a rise to 21.0 USD Billion by 2035. The integration of encryption technologies in cloud services is likely to enhance data security and foster trust among users, further propelling market expansion.

Stringent regulatory frameworks across various sectors are significantly influencing the Global Database Encryption Market Industry. Regulations such as GDPR, HIPAA, and PCI DSS mandate the protection of sensitive data, compelling organizations to adopt encryption solutions. Failure to comply with these regulations can result in hefty fines and legal repercussions. As a result, businesses are increasingly integrating encryption into their data management practices to ensure compliance and avoid penalties. This trend is likely to contribute to the market's growth, as organizations recognize the importance of adhering to legal standards while protecting their data assets.

Innovations in encryption technologies are propelling the Global Database Encryption Market Industry forward. Advances such as homomorphic encryption, quantum encryption, and AI-driven security measures are enhancing the effectiveness of data protection strategies. These technologies not only improve security but also streamline the encryption process, making it more accessible for organizations of all sizes. As businesses become more aware of the benefits of adopting cutting-edge encryption solutions, the market is likely to experience substantial growth. The ongoing development of encryption technologies will play a crucial role in shaping the future landscape of data security.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American database encryption market area will dominate this market. The market is expanding due to major players like Microsoft Corporation, IBM Corporation, Intel, SAS Institute Inc., Win Magic Inc., and EMC Corporation in this area. Furthermore, most small and medium-sized businesses in the US are integrating technology, which is driving up the demand for effective database encryption software.

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

Figure 2: Database Encryption Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe database encryption market accounts for the second-largest market share because of the region's booming IT and telecom sectors and the growing need to secure the enormous amounts of produced data. Over the coming years, it is also projected that the private sector's usage of personal computers and the Internet would raise demand for encryption solutions in this area. Further, the German database encryption market held the largest market share, and the UK database encryption market was the fastest growing market in the European region

The Asia-Pacific Database encryption Market is expected to grow at the fastest CAGR from 2024 to 2032. The region will be the most appealing place for market players throughout the projection period since businesses are compelled to store their data in the cloud due to the lack of storage infrastructure in the area. As a result, there is a greater chance of theft and data loss, which is increasing demand for database encryption. Moreover, China’s database encryption market held the largest market share, and the Indian database encryption market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the database encryption market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, database encryption industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global database encryption industry to benefit clients and increase the market sector. In recent years, the database encryption industry has offered some of the most significant advantages to market.

Major players in the database encryption market attempting to increase market demand by investing in research and development operations include Pkware, Inc. (US), Microsoft Corporation (US), Trend Micro Inc. (Japan), Sophos Ltd. (US), Symantec Corporation (US), Check Point Software Technologies Ltd. (Israel), IBM Corporation (US), Intel (US), SAS Institute Inc. (US), Win Magic Inc. (Canada), Emc Corporation (US), Oracle Corporation (US), Netapp Inc. (US), Gemalto (The Netherlands), Vormetric Inc. (US) and Fireeye, Inc. (US).

IBM is a company that sells goods and services related to information technology (IT). In addition to offering infrastructure, hosting, and consulting services, the company develops and markets system hardware and software. Blockchain, IT infrastructure, cloud computing, IT management, cybersecurity, and software development technologies are all part of IBM's product range. Artificial intelligence (AI), automation, analytics, and automation are all included. In addition, the business provides services like cloud, security, networking, technology consulting, business resilience services, application services, and technology support services.

In May 2018, IBM and Cisco, two firms with shared bases, combined IBM's security personnel with Cisco's security tools for quicker, more precise problem detection and resolution. If this partnership had been successfully implemented, it would have greatly enhanced treat intelligence, improved how products interact with services, and increased service integration.

Data management and business intelligence software services are offered by SAS Institute Inc (SAS). The company's solution portfolio comprises advanced analytics solutions, AI, ML, data management, decisioning, cloud, fraud and security intelligence, marketing analytics, operationalizing analytics, IoT, and risk management. Agriculture, banking, education, insurance, the life sciences, healthcare, manufacturing, retail, the public sector, consumer goods, small and midsize businesses, media and technology, sports, communications, and utilities are just a few sectors SAS supports.