Data Encryption Global Market Report 2024

The data encryption market size has grown rapidly in recent years. It will grow from $15.76 billion in 2023 to $18.08 billion in 2024 at a compound annual growth rate (CAGR) of 14.7%. The growth observed in the historic period can be attributed to several key factors. These include the evolution of network security measures in response to changing threats, a surge in the number of data breaches prompting heightened security concerns, an increased adoption of cloud-based services, the rapid pace of urbanization across the globe, and a growing awareness of cybersecurity issues along with corresponding government initiatives.

The data encryption market size is expected to see rapid growth in the next few years. It will grow to $31.43 billion in 2028 at a compound annual growth rate (CAGR) of 14.8%. The anticipated growth in the forecast period can be attributed to several key factors. These include the increase in data theft incidents, a rise in cybercrime occurrences, a growing demand for robust data protection measures, improvement in people's living standards, and the expanding use of internet services. Major trends expected during this period encompass advancements in digital data transfer via smartphones, ongoing product innovation in the field of data protection, widespread adoption of advanced technologies and cloud-based services, the application of machine learning and the internet of things, and an increase in investments in the cybersecurity domain.

The burgeoning adoption of internet services is poised to be a driving force behind the growth of the data encryption market in the foreseeable future. The internet, a globally interconnected network system, facilitates communication and data services across a diverse array of networks spanning private, public, academic, business, and governmental entities, ranging from local to global in scope. The proliferation of high-speed internet infrastructure, including broadband and mobile networks, has significantly enhanced accessibility to the internet, enabling individuals to connect from virtually any location. Encryption plays a pivotal role in data security by converting data into an unintelligible format, thereby thwarting unauthorized access and interception during transmission, thereby safeguarding sensitive information such as personal, financial, or business data. According to a report released by the International Telecommunication Union in November 2022, approximately 5.3 billion individuals, constituting 66% of the global population, are projected to be internet users, reflecting a growth rate of 6.1% compared to 2021. Consequently, the expanding adoption of internet services is driving the expansion of the data encryption market.

Key players within the data encryption market are actively developing innovative products to better cater to customer needs, with a focus on advanced features such as cloud-based file encryption management solutions. These solutions leverage processes and technologies to secure data by transforming it into an unreadable format (ciphertext) before it is transmitted to or from cloud-based applications and storage. For instance, in November 2023, Utimaco, a Germany-based cybersecurity solutions provider, unveiled the u.trust LAN Crypt Cloud. Distinguished by its ability to safeguard sensitive and business-critical data against unauthorized access, the u.trust LAN Crypt Cloud employs client-side encryption, ensuring data protection regardless of its storage location, be it on-premises or in the cloud. This solution streamlines the implementation of encryption strategies, offering a user-friendly approach that empowers companies to prevent unauthorized access to protected data while adhering to international data protection regulations. Moreover, this feature serves as a robust defense against ransomware attacks, as encrypted data remains unusable to attackers seeking to exploit it for malicious purposes.

In September 2022, SandboxAQ, a leading enterprise software as a service (SaaS) company based in the US, finalized the acquisition of Cryptosense for an undisclosed sum. This strategic move positions SandboxAQ to accelerate the introduction of its Post-Quantum Cryptography (PQC) solutions to the market by leveraging their combined customer relationships. Additionally, the acquisition enhances protection against current and emerging quantum threats, including Store Now and Decrypt Later (SNDL) attacks, for corporations, government institutions, and their global clientele. Cryptosense, headquartered in France, specializes in providing data encryption management software.

Major companies operating in the data encryption market are Microsoft Corporation, Siemens AG, Intel Corporation, Accenture Plc, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Honeywell International Inc., SAP SE, Fujitsu Limited, ABB Ltd., Hewlett Packard Enterprise Co., NEC Corporation, Thales Group, Netapp Inc., Palo Alto Networks Inc., Fortinet Inc., Micro Focus International Plc, Check Point Software Technologies Ltd., McAfee LLC, Trellix Corp, Innovative Routines International (IRI) Inc., BlackBerry Limited, Proofpoint Inc., Rapid7 Inc., Imperva Inc., Coalfire Systems Inc., Trustwave Holdings Inc., Protegrity Inc., GoGuardian.

North America was the largest region in the data encryption market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data encryption market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data encryption market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Data encryption is a security practice that involves transforming data into an unreadable format, known as ciphertext, which can only be reversed to its original form (plaintext) by someone possessing the appropriate decryption key. This measure is implemented to protect information from unauthorized access, alteration, or compromise.

The two main methods of data encryption are asymmetric and symmetric encryption. Asymmetric encryption, also known as public-key encryption, utilizes a key pair for encrypting and decrypting data. It is widely used in securing online communication, digital signatures, and ensuring data protection during transfer. Organizations, regardless of size, can opt for either on-premise or cloud deployment options. Various industries, including aerospace and defense, automotive, banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, healthcare, and manufacturing, utilize data encryption to enhance security measures.

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

The data encryption market consists of revenues earned by entities by providing services such as automation, compliance, integration, and key management. The market value includes the value of related goods sold by the service provider or included within the service offering. The data encryption market also includes sales of full disk encryption software, cloud encryption solutions, decentralized encryption, and data-at-rest encryption. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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