Cloud Encryption Software Global Market Report 2024

The cloud encryption software market size has grown exponentially in recent years. It will grow from $4.42 billion in 2023 to $5.83 billion in 2024 at a compound annual growth rate (CAGR) of 31.9%. The growth observed in the historical period can be attributed to several factors, including the increased adoption of cloud computing technologies, a rise in demand for streamlined payroll processes, the expansion of the gig economy, a heightened focus on cost reduction initiatives, and the growth of subscription-based software models.

The cloud encryption software market size is expected to see exponential growth in the next few years. It will grow to $17.82 billion in 2028 at a compound annual growth rate (CAGR) of 32.2%. The anticipated growth in the forecast period can be attributed to several factors, including the rising adoption of advanced artificial intelligence (AI) technologies, increasing demand for predictive analytics capabilities, a growing need for integrated forecasting solutions, the widespread use of Internet of Things (IoT) devices, and an increasing reliance on big data analytics. Major trends expected during this period include the implementation of hybrid encryption solutions, advancements in key management systems, adoption of zero trust architecture principles, readiness for post-quantum cryptography, emphasis on data privacy measures, and compliance with regulatory standards.

The surge in cybersecurity threats is anticipated to drive the expansion of the cloud encryption software market in the foreseeable future. Cybersecurity threats encompass a range of potential malicious activities capable of causing harm or disruption to information systems, networks, data, or users. The proliferation of these threats is attributed to factors such as heightened connectivity, the digitalization of business operations, increased reliance on technology, the growing sophistication of cybercriminals, and vulnerabilities in software and hardware systems. Cloud encryption software serves as a critical solution in mitigating cybersecurity risks by encrypting data stored in the cloud, thereby ensuring its confidentiality and protection from theft, even in the event of unauthorized access. For instance, data released by the UK Department for Science, Innovation, and Technology in April 2023 revealed that cybercrime had affected 11% of businesses and 8% of charities in the preceding year. This figure notably rose to 26% for medium-sized businesses, 37% for large businesses, and 25% for high-income charities. Consequently, the escalating cybersecurity threats are fueling the demand for cloud encryption software solutions.

Major players in the cloud encryption software market are actively developing innovative solutions to address evolving cybersecurity challenges. One such solution gaining traction is file encryption-as-a-service management, offering businesses a secure and convenient method to encrypt their cloud-stored files. For instance, in November 2023, Utimaco, a US-based provider of IT security solutions, launched its user-friendly file encryption management solution, u.trust LAN Crypt Cloud. This solution employs client-side encryption to ensure data security regardless of its storage location, be it on-premises or in the cloud. Noteworthy features such as seamless encryption, centralized management, and flexible deployment options position this solution as a comprehensive safeguard for critical business data.

In September 2022, Materialise NV, a prominent player in 3D printing solutions based in Belgium, made a strategic acquisition by purchasing Identify3D, a US-based company specializing in encryption software. This acquisition underscores Materialise's commitment to enhancing customer confidence in data security and integrity, particularly in distributed manufacturing. Identify3D's expertise in creating software for encrypting, distributing, and tracking digital components within intricate supply chains complements Materialise's vision of fortifying its CO-AM platform. This acquisition is poised to elevate Materialise's standing in the market, positioning CO-AM as the premier software platform for distributed manufacturing, fortified with robust encryption capabilities.

Major companies operating in the cloud encryption software market are Amazon.com Inc., Alphabet Inc., Microsoft Corporation, Alibaba Group Holding Limited, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, Salesforce Inc., NEC Corporation, Adobe Inc., VMware Inc., ServiceNow Inc., Palo Alto Networks Inc., Workday Inc., Red Hat Inc., OpenText Corporation, Citrix Systems Inc., Rackspace Technology Inc., Dropbox Inc., Lumen Technologies Inc., Progress Software Corporation, HashiCorp Inc., Canonical Ltd.

North America was the largest region in the cloud encryption software market in 2023. The regions covered in the cloud encryption software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cloud encryption software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Cloud encryption software comprises specialized tools and applications crafted to safeguard data stored in cloud computing environments using encryption techniques. These software solutions encrypt data before it's uploaded to the cloud, ensuring its protection during transmission and while at rest within cloud storage systems.

The primary components of cloud encryption software include solutions and services. Cloud encryption software solutions are software applications or services designed to encrypt data before it's stored in or transmitted through cloud storage or services. Enterprises of varying sizes, including large enterprises and small to medium-sized enterprises (SMEs), utilize cloud encryption software for diverse applications such as disk encryption, file encryption, database encryption, communication encryption, and cloud encryption across various industry verticals such as banking, financial services, and insurance (BFSI), aerospace and defense, government and public utilities, information technology (IT) and telecommunications, healthcare, retail, among others.

The cloud encryption software market research report is one of a series of new reports that provides cloud encryption software market statistics, including cloud encryption software industry global market size, regional shares, competitors with a cloud encryption software market share, detailed cloud encryption software market segments, market trends and opportunities, and any further data you may need to thrive in the cloud encryption software industry. This cloud 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 cloud encryption software market consists of revenues earned by entities by providing services such as integration with cloud services, data encryption, key management, access control, and data masking and tokenization. The market value includes the value of related goods sold by the service provider or included within the service offering. The cloud encryption software market also includes sales of hardware security modules (HSMs), encryption accelerators, secure storage devices, network security appliances, and server hardware. 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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