Banking Encryption Software Market Report 2025

The banking encryption software market size has grown rapidly in recent years. It will grow from $4.09 billion in 2024 to $4.55 billion in 2025 at a compound annual growth rate (CAGR) of 11.3%. The growth in the historic period can be attributed to rise in cyber threats, stringent data protection regulations, growth in adoption of cloud computing, shift towards mobile banking, fraud prevention and compliance.

The banking encryption software market size is expected to see rapid growth in the next few years. It will grow to $7.93 billion in 2029 at a compound annual growth rate (CAGR) of 14.9%. The growth in the forecast period can be attributed to expansion of digital banking, increased awareness of data privacy rights, adoption of advanced technologies like blockchain and internet of things (IoT) in banking, growing bfsi sector. Major trends in the forecast period include homomorphic encryption, quantum-resistant cryptography (qrc), leveraging blockchain's distributed ledger technology, ai-powered threat detection and anomaly identification, scalable and flexible encryption solutions.

The increase in cyberattacks is expected to drive the growth of the banking encryption software market in the future. Cyberattacks involve malicious activities aimed at compromising the security of computer systems, networks, and digital devices to steal sensitive information, disrupt operations, or inflict damage. Banking encryption software plays a crucial role in protecting financial data and communications. To mitigate cyberattack risks, it is vital to implement proper key management, regularly update and patch software, avoid social engineering attacks, and adopt a multi-layered security strategy. For example, in February 2023, the Australian Cyber Security Centre reported that cybercrime incidents in 2022 reached 76,000, marking a 13% increase from the previous year. Thus, the rise in cyberattacks is propelling the growth of the banking encryption software market.

The uptick in digital transactions is expected to propel the banking encryption software market. Digital transactions, involving financial activities conducted electronically through digital devices and online platforms, have witnessed a surge with the growing popularity of digital banking. This trend has expanded the attack surface for cybercriminals, necessitating the use of encryption to secure financial transactions and protect customer privacy. According to the Consumer Financial Protection Bureau, U.S. consumers' expenditures using Google Pay at stores reached $65.2 billion in 2022, a substantial increase from the $24.8 billion recorded in 2021. Thus, the rise in digital transactions is a driving force behind the growth of the banking encryption software market.

Technological advancements represent a prominent trend in the banking encryption software market, with major companies introducing innovative products to maintain their market positions. For instance, in October 2022, Mastercard Inc. unveiled a novel crypto service focused on risk management. Leveraging blockchain data, artificial intelligence, and public crypto transaction records, the service identifies risks related to crypto exchange crime within the Mastercard network, aiding banks in detecting and preventing fraud on crypto merchant platforms.

Major companies in the banking encryption software market are focusing on developing modern banking operating software to offer a more personalized and seamless banking experience. This modern software automates routine tasks such as transaction processing, account management, and compliance reporting, helping to reduce manual errors and operational costs. For example, in February 2024, FBNBank, a UK-based bank and financial services company, launched Finacle 11x, a modern banking operating software aimed at transforming the customer experience. Finacle 11x integrates advanced encryption protocols and security mechanisms to safeguard customers' financial data against cyber threats and unauthorized access. The introduction of Finacle 11x is expected to redefine the banking experience by facilitating faster transaction processing and enhancing service delivery.

In September 2022, SandboxAQ, a U.S.-based software development company, acquired Cryptosense for an undisclosed amount. This acquisition positions SandboxAQ to accelerate the global rollout of its post-quantum cryptography products for businesses and governmental organizations. Cryptosense, a France-based cybersecurity and encryption analysis software company, offers solutions to enhance organizations' encryption practices and protect against emerging threats.

Major companies operating in the banking encryption software market include Microsoft Corporation, Dell EMC, Intel Corporation, International Business Machines Corporation, Cisco System Inc., Broadcom Inc., Hewlett Packard Enterprise, Thales Group, NetApp Inc., Gemalto, Digital China Holdings Limited, Check Point Software Technologies Ltd., McAfee LLC, Trend Micro Inc., Proofpoint Inc., Zscaler, Eset Spol S.r.o., Wondershare Technology Co. Ltd., F-Secure, CipherCloud, Seclore, Sophos Ltd., Digital Guardian, WinMagic, PKWARE Inc., Skyhigh Networks, InfoSec Global Inc.

North America was the largest region in the banking encryption software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the banking encryption software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the banking encryption software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Banking encryption software refers to specialized software solutions or technologies employed in the banking industry to secure and safeguard sensitive data and communications. This involves utilizing encryption algorithms and protocols to transform plain text or data into an unreadable format (ciphertext), rendering it incomprehensible to unauthorized parties.

The primary components of banking encryption software encompass software and services. Software constitutes a compilation of instructions, data, or computer programs utilized to operate machines and perform specific activities. Various encryption types include symmetric encryption, asymmetric encryption, and hashing algorithms. Functions may involve disk encryption, communication encryption, file or folder encryption, cloud encryption, and others. These are implemented through various deployment models such as cloud and on-premise and cater to enterprise sizes ranging from large enterprises to small and medium enterprises.

The banking encryption software market research report is one of a series of new reports that provides banking encryption software market statistics, including banking encryption software industry global market size, regional shares, competitors with a banking encryption software market share, detailed banking encryption software market segments, market trends, and opportunities, and any further data you may need to thrive in the banking encryption software industry. This banking 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.

The banking encryption software market includes revenues earned by entities by providing data encryption solutions, secure communication platforms, tokenization services, key management systems, and hardware security modules. 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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