Encryption Software Market Report 2025

The encryption software market size has grown rapidly in recent years. It will grow from $13.45 billion in 2024 to $15.29 billion in 2025 at a compound annual growth rate (CAGR) of 13.7%. The growth in the historic period can be attributed to data privacy concerns, stringent regulatory compliance, data center security, increasing volume of sensitive data, integration with storage solutions.

The encryption software market size is expected to see rapid growth in the next few years. It will grow to $30.44 billion in 2029 at a compound annual growth rate (CAGR) of 18.8%. The growth in the forecast period can be attributed to regenerative medicine security, user-friendly encryption interfaces, ransomware mitigation, transparent data encryption, cross-border data transfer. Major trends in the forecast period include data privacy regulations and compliance, cloud encryption solutions, end-to-end encryption for communication, quantum-safe encryption, integration with key management systems, mobile device encryption collaboration with endpoint security solutions.

The growing adoption of cloud and virtualization technologies is significantly driving the growth of the encryption software market. Cloud technology refers to the delivery of computing services, such as data and software, over the internet. As this data is transferred, it requires security and protection, which is provided by encryption software. This software helps safeguard data during transmission between different sources or to and from the cloud. For instance, in December 2023, the European Union, based in Belgium, reported that the share of enterprises purchasing cloud computing services in the EU rose by 4.2 percentage points compared to 2021. Therefore, the increasing adoption of cloud and virtualization technologies by companies is expected to propel the growth of the encryption software industry in the future.

The increased use of IoT devices is expected to drive the growth of encryption software market. IoT devices, which encompass non-standard computing hardware like sensors, actuators, appliances, or machines, establish wireless connections to networks, facilitating data transmission over the internet or other networks. The IoT devices use encryption software for secure data transmission, device authentication, secure remote access, and enhancing IoT ecosystem security. For instance, in May 2023 IoT Analytics GmbH, a Germany-based provider of market insights and strategic business intelligence for the IoT, AI, Cloud, Edge, and Industry 4. 0 stated that the global IoT connections saw an 18% increase in 2022, reaching a total of 14. 3 billion active IoT devices. Therefore, the increased use of IoT devices will be propelling the growth of encryption software market going forward.

Technological advancement is a key trend gaining popularity in the encryption software market. Major companies operating in the encryption software sector are focused on developing new technological solutions to strengthen their position and provide an enhanced product to their users. For instance, in May 2023 Vaultree an Ireland-based software developer announced the launch of Fully Functional Data-In-Use Encryption (FFDUE) solution to the healthcare industry, which significantly improved safeguarding healthcare data. The FFDUE technology enables processing encrypted data in real-time, at scale, while maintaining operational efficiency and performance.

Major companies operating in the encryption software market are developing innovative products to meet the growing demand for encryption software. Innovative encryption software involves cutting-edge cybersecurity tool designed to protect sensitive data by employing advanced encryption techniques and algorithms. For instance, in February 2023 Irdeto, a Netherland-based IT services and consulting services provider announced the launch of ActiveCloak for Media (ACM). ActiveCloak for Media (ACM) incorporates multiple layers of security to safeguard against the unauthorized extraction of content encryption keys from devices. The enhanced ActiveCloak for Media is specifically crafted to shield susceptible devices from the illicit extraction of content encryption keys. This solution incorporates Java Access Control and a range of multi-layered defense mechanisms to thwart any unauthorized attempts to access the content.

In February 2023, OpenText, a Canada-based software company specializing in information management solutions, acquired Micro Focus International plc for $5.8 billion. This strategic acquisition aims to enhance OpenText's offerings in cybersecurity and digital transformation, with a particular focus on encryption software and other essential technologies. Micro Focus International plc, a UK-based technology company, provides a variety of solutions, including security and encryption software.

Major companies operating in the encryption software market include Amazon Web Services Inc, Check Point Software Technologies Ltd., Dell Inc., Cisco System Inc, F-Secure Corporation, Ibm Corporation, Microsoft Corporation Inc., Oracle Corporation, Palo Alto Networks Inc., Trend Micro Inc.,ESET s. r. o,Sophos Group Ltd., Bitdefender Ltd., Pkware Inc.,Thales Group,Gemalto, Jetico Inc.,Micro Focus, McAfee, Fortinet, WinMagic,Vormetric, Proofpoint, Utimaco GmbH, Boxcryptor, Virtru, Zix Corporation,Trustwave.

The encryption software refers to a type of security program that enables encryption and decryption of the data stream at rest or in transit. It enables the encryption of the content of a data object, file, network packet, or application. This software is secure as it cannot be viewed by unauthorized users. This software is also cheap and trustworthy.

The main types of encryption software are software and service. The total set of programs, operations, and routines related to the operation of a computer system is referred to as software. Encryption software works in large enterprises and small and medium enterprises that have applications in database encryption, disc encryption, file/folder encryption, cloud encryption, and communication encryption. They are used in various industries such as IT and telecommunications, banking, finance, security, and insurance (BFSI), healthcare and life sciences, manufacturing, government, energy and utilities, and other industries.

The encryption software market research report is one of a series of new reports that provides encryption software market statistics, including encryption software industry global market size, regional shares, competitors with a encryption software market share, detailed encryption software market segments, market trends and opportunities, and any further data you may need to thrive in the encryption software industry. This encryption software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

North America was the largest region in the encryption software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the encryption software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the encryption software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The encryption software market includes revenues earned by entities by providing cloud security, system security services, application security, confidentiality data security, email security services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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