Data Encryption Market

Increasing numbers of data breaches to propel the market growth

Data and security breaches have become more commonplace in recent years. For instance, in June 2020, the Chartered Professional Accountants of Canada (CPA) had a cyber-attack that resulted in the loss of personal data for more than 329,000 stakeholders and members. Data protection technology and practices that assist businesses store and secure important data are urgently needed as a result of rising data breaches across all industry sectors. Companies all around the world are choosing encryption software as a crucial preventative precaution against data and security breaches. Systems and databases are kept secure because ransomware cannot compromise cryptographic security controls.

Thus, encryption techniques like encryption and steganography are employed to increase data security, which in turn helps to thwart cyber threats from stealing data. This is also anticipated to fuel the expansion of the data encryption industry. Additionally, the amount of data produced by digital channels, cloud computing, and the internet of things (IoT) has grown, necessitating a greater demand for data privacy solutions. Thus, this factor is driving the market CAGR for data encryption.

Additionally, due to an increase in data theft and cybercrime occurrences, the big data and internet of things (IOTs) have greatly contributed to the expanding use of internet services and the rising demands for data protection. IoT enables the integration of sensors, actuators, radio frequency, and Bluetooth in a real world through highly networked services. Moreover, a key element boosting the market's growth for data encryption over the anticipated period is the emphasis on efficiency brought on by expanding urbanization.

Furthermore, governments of growing countries like China, South Korea, Dubai, India, Singapore, and Japan are aiming for their countries' economies to flourish, which is partly why the market is speeding. During the projected period, the overall market expansion for data encryption will be accelerated by governments' increasing use of big data analytics to improve internet services. Additionally, it is anticipated that the improvement in people's living standards would fuel the market's growth rate during the anticipated time.

However, the market for data encryption will see profitable chances due to the rising usage of various modern technologies and cloud-based services, which will accelerate market expansion for data encryption in the future. Building networking patterns makes use of cutting-edge technology including artificial intelligence, machine learning, blockchain, and big data analytics. Due to their increased application across many industries, these technologies are expanding. Over the anticipated term, all of these elements are generating a number of lucrative growth chances for the data encryption market. Thus, it is anticipated that this aspect will accelerate data encryption market revenue.

The Global Data Encryption Market Industry is projected to experience substantial growth in the coming years. With an estimated market value of 14.5 USD Billion in 2024, the industry is expected to expand significantly, reaching 62.7 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate of 14.25% from 2025 to 2035. The increasing emphasis on data security, regulatory compliance, and technological advancements are key factors contributing to this upward trend. As organizations continue to prioritize data protection, the encryption market is likely to flourish, reflecting the critical role of encryption in safeguarding sensitive information.

The increasing frequency and sophistication of cyberattacks is a primary driver for the Global Data Encryption Market Industry. Organizations are compelled to adopt robust encryption solutions to safeguard sensitive data from breaches and unauthorized access. For instance, in 2024, the market is projected to reach 14.5 USD Billion, reflecting the urgent need for enhanced security measures. As cyber threats evolve, encryption technologies are becoming essential for compliance with regulations and maintaining customer trust. This trend is likely to accelerate the growth of the market as businesses prioritize data protection strategies.

The heightened awareness and demand for data privacy among consumers are significantly impacting the Global Data Encryption Market Industry. Individuals are increasingly concerned about how their personal information is handled, leading businesses to prioritize data protection measures. This shift in consumer expectations is driving organizations to implement encryption technologies to ensure data confidentiality and integrity. As a result, the market is poised for substantial growth, with projections indicating a rise to 62.7 USD Billion by 2035. Companies that prioritize data privacy through encryption are likely to gain a competitive advantage in the marketplace.

Stringent regulatory frameworks across various sectors are significantly influencing the Global Data Encryption Market Industry. Governments and regulatory bodies are mandating organizations to implement encryption to protect personal and sensitive information. Compliance with regulations such as GDPR and HIPAA necessitates the adoption of encryption technologies, thereby driving market growth. As organizations strive to meet these legal requirements, the market is expected to expand, with projections indicating a growth to 62.7 USD Billion by 2035. This regulatory landscape compels businesses to invest in encryption solutions, ensuring they adhere to legal standards while protecting their data.

The rapid adoption of cloud computing services is a notable factor propelling the Global Data Encryption Market Industry. As businesses migrate their data to the cloud, the need for encryption to secure this data becomes paramount. Cloud service providers are increasingly offering encryption as a standard feature, which enhances data security and builds customer confidence. This trend is expected to contribute to a compound annual growth rate of 14.25% from 2025 to 2035. Organizations are recognizing that encryption is not merely an option but a necessity in the cloud environment, thereby driving the demand for advanced encryption technologies.

Ongoing technological advancements in encryption solutions are shaping the Global Data Encryption Market Industry. Innovations such as quantum encryption and advanced algorithms are enhancing the effectiveness and efficiency of data protection measures. These advancements not only improve security but also reduce the performance overhead associated with encryption processes. As organizations seek to leverage these cutting-edge technologies, the market is expected to experience robust growth, reaching 14.5 USD Billion in 2024. The continuous evolution of encryption technologies is likely to attract investments and drive the adoption of encryption solutions across various sectors.

By region, the study provides the market insights for data encryption into North America, Europe, Asia-Pacific, and the Rest of the World. North America data encryption market accounted for USD 4.9 billion in 2021 and is expected to exhibit a 43.10% CAGR during the study period because there are more people online and more sellers of encryption software in the area. The requirement to encrypt the data that travels through the network has increased as a result of the mobile wireless network's quick expansion.

Due to its booming need for data encryption in its communication infrastructure and its rapid use of cloud computing, the United States outperformed all other North American nations in this industry.

Further, the major countries studied in the market report for data encryption are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: DATA ENCRYPTION MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Asia Pacific Data encryption market is expected to grow at a significant CAGR from 2022 to 2030. The absence of storage infrastructure in the region has forced businesses to store their data in the cloud, making it the most attractive location for market players during the forecast period. The risk of thefts and data losses is rising as a result, which is fueling demand for data encryption. Additionally, the regional market has expanded as a result of increased IoT, cloud, and BYOD penetration.

Further, the China Data encryption market held the largest market share, and the India Data encryption market was the fastest-growing market in the region.

Europe Data encryption market accounts for the second-fastest growing market share due to the region's developed IT and telecom industry and the growing necessity to protect the vast amounts of produced data. The use of personal computers and the Internet in the private sector is also anticipated to increase demand for encryption solutions in this area over the ensuing years. Moreover, UK Data encryption market held the largest market share, and the Germany Data encryption market was the fastest-growing market in this region.

Major market players are spending a lot on R&D to increase their product lines, which will help the data encryption industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

One of the primary business strategies manufacturers adopt in the data encryption industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, data encryption industry has provided medicine with some of the most significant benefits. The data encryption market major player such as Microsoft Corporation (US), IBM Corporation (US), Symantec Corporation (US), Intel Security (US), HP (US), Oracle Corporation (US), Gemalto (The Netherlands), Netapp Inc. (US), FireEye Inc. (US) and Vormetric Inc. (US).

An international business with a focus on computer technology and consulting is called IBM. Its corporate headquarters are in New York, US, and it was founded in 1911. IBM offers a range of cybersecurity technologies, including sophisticated fraud protection, network protection, endpoint protection, mainframe security, application security, data security, and cloud and mobile security. In December 2020, IBM introduced FHE, allowing data to stay encrypted even while being processed or analyzed on the cloud or in environments provided by third parties.

Also, the American multinational technology company Microsoft Corporation creates computer software, home appliances, laptops, and related services. The Windows line of operating systems, the Microsoft Office package, and the Internet Explorer and Edge web browsers are among Microsoft's most well-known software offerings. Microsoft is headquartered on the Microsoft campus in Redmond, Washington.