Data Encryption is an approach to protecting data having critical & confidential information by converting the data into an encrypted format. It ensures that only the users with the encryption key can access the encrypted data. Nowadays, data security concerns are among the top trends among enterprises, which is why there's an increasing demand for data encryption services worldwide.
The Global Data Encryption Market is anticipated to grow at a CAGR of around 18.1% during the forecast period, i.e., 2022-27, says MarkNtel Advisors. The market growth attributes primarily to the mounting incidence of data breaches, cyberattacks, identity thefts, and revenue losses among several organizations globally.
For instance, in January 2019, the State Bank of India left one of its servers unprotected that exposed the data of its 422 million customers. The server, situated in Mumbai, contained the partial bank account numbers, phone numbers, & bank balances of individuals using the bank’s SBI Quick Service.
Moreover, the booming developments in data-centered technology and burgeoning adoption of electronics devices that store a large volume of data are other prominent factors driving the market. Further, the adoption of data encryption is rapidly surging among financial companies to protect their crucial data from getting exposed to any malware activities, thereby boosting the market, further states the research report, “Global Data Encryption Market Analysis, 2022.”
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 18.1% |
| Regions Covered | North America: USA, Canada, Mexico |
| Europe: Germany, UK, France, Italy, Spain | |
| Asia-Pacific: China, India, Japan | |
| South America: Brazil, and Argentina | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa, Israel | |
| Key Companies Profiled | HP, IBM Corporation, Microsoft Corporation, Symantec Corporation, Intel Security, Oracle, Gemalto, Netapp Inc., Trend Micro Inc., FireEye Inc., Dell Technologies, Inc., Thales e-Security, Inc., McAfee, Inc., Bitdefender, CipherCloud |
| Unit Denominations | USD Million/Billion |
Covid-19 Impact on the Global Data Encryption Market
During the COVID-19 pandemic, an unprecedented rise in online activity was witnessed, which, in turn, led to the consequent increase in cybersecurity challenges. The more data stored in the cloud & transferred online became vulnerable to exposure & hacking and underscored the need for robust data encryption services.
Moreover, most business operations during the lockdown were performed from remote locations to curb the spread of disease, which further resulted in the high risk of cyber-attacks. Hence, the need for proper IT infrastructure cyber security significantly surged the demand for data encryption among organizations amidst the Covid-19 pandemic and fueled the overall market growth.
Market Segmentation
By End-User:
Of them all, the BFSI sector is projected to dominate the Global Data Encryption Market with the Largest Share during 2022-27. It owes to the rising digitalization across banks & financial institutions worldwide to provide customers with seamless banking services.
This digital transformation includes a large volume of critical user data stored in the cloud, which is susceptible to cyberattacks and can also put banks in serious trouble in case of any data breach. The complex nature of the banking industry and the need to maintain confidentiality & reduce exposure to protocol-specific attacks are fueling the demand for data encryption solutions across the BFSI sector.
By Deployment:
Here, the demand for Cloud-based Data Encryption services is expected to register the fastest growth in the coming years, mainly due to its cost-effectiveness, efficient data management, and scalability. Cloud-based data encryption provides effectively secure data privacy.
Moreover, the snowballing adoption of the Internet of Things (IoT) to enhance business functioning is leading to the generation of a large amount of data through mobile devices, which, as a result, is fueling the adoption of cloud storage solutions. Hence, this factor shall also fuel the demand for Cloud-based Data Encryption services in the coming future.
Regional Landscape:
Region-wise, the Global Data Encryption Market expands across:
Here, North America attained the largest market share in recent years, primarily due to the mounting internet penetration and strong presence of encryption software vendors across the region. The rapidly expanding mobile wireless network has resulted in an increasing need to encrypt the data that traverse across.
Among all the North American countries, the United States dominated the market owing to the burgeoning demand for data encryption in the US communication infrastructure and the surging adoption of mobility solutions & cloud technology in the country.
On the other hand, Europe is likely to witness the growing demand for data encryption services over the coming years, owing to the presence of the well-established IT & Telecom sector in the region, coupled with the increasing need to protect the massive data produced.
Market Dynamics:
Key Drivers
Mounting Number of Data Breaches to Drive the Global Data Encryption Market during 2022-27
The burgeoning incidences of public data breaches are the primary factors driving the Global Data Encryption Market through 2027. For instance, In June 2020, the Chartered Professional Accountants of Canada website has witnessed a cyberattack that affected the personal information of more than 329,000 members & stakeholders.
The personal information included names, e-mail IDs, and addresses. However, the credit card numbers and passwords were safe due to encryption. Hence, the rising data breaches across several industry verticals have increased the demand for data encryption solutions that can help businesses store & secure their critical information.
The other prominent market drivers include:
Possible Growth Challenges
Usage of Pirated Data Encryption Solutions Might Hinder Market Growth
There are certain drawbacks restraining the Data Encryption Market growth. In recent years, the use of pirated platforms, i.e., the unauthorized copying of the licensed versions of the encryption software, has increased tremendously, which increases the chances of ransomware attacks on critical business data. Hence, continuing use of such pirated software can hamper the global market growth.
The other market challenges include:
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Data Encryption Market is projected to grow at a CAGR of around 18.1% during 2022-27.
A. The BFSI sector is projected to acquire the largest share of the Global Data Encryption Market during the forecast period and present lucrative growth opportunities for the leading market players.
A. Europe Data Encryption Market is expected to continue growing at the highest CAGR during 2022-27 and present immense opportunities to the leading market players.
