Encryption Software Market is expected to reach $2.5 Billion, Globally by 2021

SOURCE: Allied Market Research

Global Encryption Software Market Report, published by Allied Market Research, forecasts that the global market is expected to garner $2.5 billion by 2021, registering a CAGR of 14.2% during the period 2016 – 2022. North America is expected to be the leading contributor during the forecast period, owing to higher adoption of end-point security solutions among organizations and prevalence of higher data protection & compliance regulations. However, Asia-Pacific region is anticipated to grow at the fastest rate, due to the growing penetration of cloud computing and increasing workforce mobility.

The encryption software market by usage comprises encryption for data-at-rest and encryption for data-in-transit. In 2014, data-at-rest encryption software segment accounted for approximately 93.4% of the total encryption software market by value. For data-at-rest, the two most commonly used encryption software methods include full disk encryption (FDE) and file level encryption (FLE), with full disk encryption being the most widely deployed method for protecting data against theft and ensuring compliance with data privacy and data breach notification laws. FDE is preferred over the FLE primarily due to the two major advantages, viz. ease of deployment and management, and complete security.

“Software encryption is being widely used across different industry verticals including finance, healthcare, government, and others. Financial sector accounted for approximately 44.2% of global encryption software market in 2014. Entities operating in the sector are mandated by the data privacy regulations to adopt effective security measures in their organization and to ensure that the personally identifiable data (PII) of the customers is protected from any unauthorized or unintended disclosure/access. Healthcare and Public sectors are anticipated to witness rapid adoption of software encryption during 2016-2020”, states Bhawana Kohli, Lead Analyst, Technology & Media at AMR.

Key findings of Encryption Software Market:

– Presently, encryption software for data-at-rest accounts for the major share of the encryption software market as compared to the encryption software for data-in-transit (email)
– Within the data-at-rest encryption software market, software-based full disk encryption (FDE) would continue to hold the majority of share vis–vis file level encryption (FLE), throughout the forecast period
– Based on the geographic analysis, North America presently is the highest revenue-generating region and would continue to maintain this trend during 2015-2021
– The use of encryption software is most widespread in the financial sector, which contributed approximately 44.2% share of total encryption software market revenue in 2014
– The adoption of encryption software is higher among large enterprises as compared to the small- and medium-sized businesses

Owing to the rapidly increasing adoption of cloud services across various sectors, organizations are inclined towards adopting encryption solutions to ensure data security and compliance with the data privacy regulations. The key players profiled in this report are Symantec Corporation, Sophos Holdings Ltd., McAfee, Inc., Check Point Software Technologies, Proofpoint, and Trend Micro.