Encryption Software Market Analysis

Encryption Software Market Overview

The Encryption Software Market is projected to grow from USD 5.42 billion in 2024 to USD 15.69 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.20% during the forecast period (2024 - 2032). Additionally, the market size for encryption software was valued at USD 4.66 billion in 2023.

Increased use of cloud computing and virtualization and progress in technology are the key market drivers enhancing market growth.

Figure 1: Encryption Software Market Size, 2023-2032 (USD Billion)

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

Encryption Software Market Trends

Market CAGR for encryption software drives the market because increasing government and state data privacy rules have compelled firms to speed up their data security procedures. Companies across all sectors are adopting various safety precautions to safeguard their customers' and employees' personal information. As businesses seek technology advantages to improve their competitive standing, encryption software has seen significant global usage. Demand for encryption software is expected to rise due to the issues mentioned above in the future.

Additionally, rapid automation and more people using the internet have made it easier for hackers to steal and infringe on the intellectual property of businesses and users. Because of these security risks, companies must implement solutions to protect the data. Encryption software lets companies protect their intellectual property and other private data, which is expected to increase demand over the next few years. There are a lot of problems in the encryption software sector, such as a competitive market and rising customer expectations. Still, the encryption software industry is using more and more cutting-edge technologies because it needs better data speed, more efficient processes, real-time reports, more visibility, and better results. Therefore, the increasing prevalence of encryption software is fueling the expansion of the international market.

For instance, IBM declares that it has bought Polar Security, a leader in technology that helps businesses find, continuously monitor, and secure cloud and software-as-a-service (SaaS) application data. It helps solve the growing shadow data problem. As a result, the demand for encryption software is predicted to grow throughout the forecasted time due to the rising demand for cloud-based technology. Thus, the driving factor is the encryption software market revenue.

Encryption Software Market Segment Insights

Encryption Software Deployment Insights

The global encryption software market segmentation, based on deployment, includes cloud and on-premise. In 2022, the on-premise segment led the encryption software market in revenue because the widespread use of the Internet of Things (IoT) and the growth of digital outlets like social media have made it easier for businesses to run and endpoints to collect data.

Figure 2: Encryption Software Market by Deployment, 2022 & 2032 (USD Billion)

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

Encryption Software Service Insights

The global encryption software market segmentation, based on service, includes professional and managed services. The professional category is anticipated to grow at a CAGR of 16.40% over the projected period, making up the largest market share because, with professional service encryption software, businesses can protect the privacy of digital data and keep this information safe. The major reason for the segment's growth is that banks and other financial companies are increasingly using professional service software.

Encryption Software Organization Size Insights

The global encryption software market segmentation, based on the organization size, includes small, medium, and large enterprises. The large enterprises category is expected to grow fastest at a CAGR of 16.40% because more people are using cybersecurity tools to protect data privacy. Large businesses make a lot of data, so the need for encryption methods to save that data has grown among large businesses.

Encryption Software Application Insights

The global encryption software market segmentation, based on the application, includes file/folder encryption. The file/folder encryption category is expected to grow fastest because data storage is a major need for many end users, such as shopping, healthcare, BFSI, etc. As more companies move to the file, the market for file encryption solutions is likely to grow because they are flexible in terms of how they can be used and how they can be scaled.

Encryption Software Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American encryption software market will dominate because more people use the internet, and more encryption methods will probably be used. Additionally, the growing mobile wireless network has made it harder to protect data, making encryption technology an important and necessary part of every business in the area.

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 3: ENCRYPTION SOFTWARE MARKET SHARE BY REGION 2022 (USD Billion)

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

Europe’s encryption software market accounts for the second-largest market because it has a well-established IT and telecom industry and makes a lot of data that needs to be protected. Further, the encryption software market held the largest market share, and the UK encryption software market was the fastest-growing market in the European region.

The Asia-Pacific encryption software market is expected to grow at the fastest CAGR from 2023 to 2032 due to the increasing research and development efforts for the encryption software sector and the lack of data storage technologies, and businesses will have to put their data on a cloud server. It makes it more likely that data will be lost or stolen, driving up the demand for encryption technology in the area. Moreover, China’s encryption software market held the largest market share, and the Indian encryption software market was the fastest-rising market in the Asia-Pacific region.

Encryption Software Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the encryption software market grow even more. There are some strategies for action that market participants are implementing to increase their presence around the world's global footprint, with important market developments including new product launches, contractual agreements and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the encryption software industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer use in the global encryption software industry to benefit clients and increase the market sector. In recent years, the encryption software industry has offered some of the most significant technological advancements. Major players in the encryption software market, including Checkpoint Software Technologies Ltd. (Israel), Microsoft Corporation (U.S.), Sophos Ltd. (U.S.), EMC Corporation (U.S.), Trend Micro Inc. (Japan), Intel Security Group (McAfee) (U.S.), Symantec Corporation (U.S.), SAS Institute Inc. (U.S.), IBM Corporation (U.S.), and others are attempting to grow market demand by investing in research and development operations.

Trend Micro, a market leader in cybersecurity, contributes to the worldwide secure exchange of digital data. Millions of individuals worldwide rely on Trend Micro's cybersecurity platform to keep them safe in the cloud, on the network, with their mobile devices, and at their endpoints. Decades of experience in the field of security, analysis of global dangers, and ongoing innovation are all put to use. The platform is the industry standard in cloud and enterprise security thanks to its comprehensive suite of advanced threat protection tactics, which are tailored to run smoothly in popular cloud providers like, Microsoft Azure and Google Cloud Platform (GCP), and its centralized visibility, which allows for quicker and more accurate detection and response. Trend Micro has 7,000 workers in 65 countries who help businesses simplify and protect their connected world. In March 2023, Trend Micro, Inc. announced a world tour to more than 120 cities. It is part of the company's ongoing effort to help companies deal with rising cyber risks. The goal of Trend Micro's Risk to Resilience World Tour is to help companies learn how to take control of their risk and be successful in cyber resiliency by using a single cybersecurity platform.

Microsoft makes it possible for digital change to happen in an age of intelligent cloud and intelligent edge. Its goal is to give everyone and every organization worldwide the tools they need to do more. In 1990, Microsoft set up its business in India. Microsoft in India gives its global cloud services from local data centers to help Indian start-ups, businesses, and government agencies move faster into the digital age. In June 2023, Moody's Corporation and Microsoft recently announced a unique strategic partnership to help financial services and global knowledge workers get the next-generation data, analytics, research, collaboration, and risk tools they need. Built on Moody's strong data and analytical skills and the power and scale of Microsoft Azure OpenAI Service, the partnership creates new services that improve corporate intelligence and risk assessment. These services are powered by Microsoft AI and based on Moody's data, research, and analytics.

Key Companies in the Encryption Software Market include

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  Checkpoint Software Technologies Ltd. (Israel)

  
  


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  Microsoft Corporation (U.S.)

  
  


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  Sophos Ltd. (U.S.)

  
  


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  EMC Corporation (U.S.)

  
  


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  Trend Micro Inc. (Japan)

  
  


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  Intel Security Group (McAfee) (U.S.)

  
  


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  Symantec Corporation (U.S.)

  
  


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  SAS Institute Inc. (U.S.)

  
  


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  IBM Corporation (U.S.)

  
  

Encryption Software Industry Developments

IBM released a new tool in June 2023 to help businesses track greenhouse gas emissions across cloud services and improve sustainability as they move to hybrid and multi-cloud environments. IBM Cloud Carbon Calculator and an AI-powered panel are now available to everyone. This helps clients gain access to the emissions data for different types of IBM Cloud workloads, including Artificial Intelligence (AI), High Performance Computing (HPC), and financial services.

In March 2023, SAS Customer Intelligence 360 became purchasable via AWS Marketplace—a digital catalog made up of thousand-software listings by independent software vendors that makes it easy for you to look through, try, buy, and run software on top of Amazon Web Services (AWS). Global Brands Uses SAS Customer Intelligence 360 to shape, control, and deliver better customer experiences (CX). It has always been ranked number one in independent evaluations.

Amazon Web Services (AWS) introduced Amazon S3 double-layer server-side encryption with keys stored in AWS Key Management Service (DSSE-KMS) – a new encryption option in June 2023. It increases the security level of objects uploaded into an Amazon Simple Storage Service (Amazon S3) bucket through two layers of encryption. DSSE-KMS allows customers to meet regulatory requirements while ensuring data protection is improved by applying several other levels of encryption.

In May 2023, Vaultree revolutionized healthcare data safety by presenting its cutting-edge Data-in-Use encryption solution, which is state-of-the-art and fully functional. Supported by an innovative software development kit as well as an encrypted chat tool, Vaultree transforms the landscape of data encryption technology. It provides complete confidentiality for sensitive patient information even during data breach instances without negatively impacting operational efficiency or performance.

Irdeto introduced ActiveCloak for Media (ACM), an upgraded version of its Software Development Kit (SDK), under its Digital Platform Security Solutions product category in February 2023. These added layers of security help prevent content decryption keys from being taken from devices unauthorizedly

In January 2023, Amazon's simple storage service (Amazon S3) in AWS implemented encryption by default for all new objects uploaded. Every new object undergoes server-side encryption (SSE-S3) by S3 unless the user specifies another encryption option. When an object is uploaded by a user, a unique key is generated to encrypt that data, which is then encrypted again using a root key without the user's knowledge.

Encryption Software Market Segmentation

Encryption Software Deployment Outlook

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  Cloud

  
  


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  On-Premise

  
  

Encryption Software Service Outlook

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  Professional Service

  
  


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  Managed Service

  
  

Encryption Software Organization Size Outlook

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  Small Enterprises

  
  


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  Medium Enterprises

  
  


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  Large Enterprises

  
  

Encryption Software Application Outlook

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  File/ Folder Encryption

  
  

Encryption Software Regional Outlook