The Encryption Software Market is projected to grow from USD 5.42 billion in 2024 to USD 15.69 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.20% during the forecast period (2024 - 2032). Additionally, the market size for encryption software was valued at USD 4.66 billion in 2023.
Increased use of cloud computing and virtualization and progress in technology are the key market drivers enhancing market growth.
Figure 1: Encryption Software Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Market CAGR for encryption software drives the market because increasing government and state data privacy rules have compelled firms to speed up their data security procedures. Companies across all sectors are adopting various safety precautions to safeguard their customers' and employees' personal information. As businesses seek technology advantages to improve their competitive standing, encryption software has seen significant global usage. Demand for encryption software is expected to rise due to the issues mentioned above in the future.
Additionally, rapid automation and more people using the internet have made it easier for hackers to steal and infringe on the intellectual property of businesses and users. Because of these security risks, companies must implement solutions to protect the data. Encryption software lets companies protect their intellectual property and other private data, which is expected to increase demand over the next few years. There are a lot of problems in the encryption software sector, such as a competitive market and rising customer expectations. Still, the encryption software industry is using more and more cutting-edge technologies because it needs better data speed, more efficient processes, real-time reports, more visibility, and better results. Therefore, the increasing prevalence of encryption software is fueling the expansion of the international market.
For instance, IBM declares that it has bought Polar Security, a leader in technology that helps businesses find, continuously monitor, and secure cloud and software-as-a-service (SaaS) application data. It helps solve the growing shadow data problem. As a result, the demand for encryption software is predicted to grow throughout the forecasted time due to the rising demand for cloud-based technology. Thus, the driving factor is the encryption software market revenue.
The global encryption software market segmentation, based on deployment, includes cloud and on-premise. In 2022, the on-premise segment led the encryption software market in revenue because the widespread use of the Internet of Things (IoT) and the growth of digital outlets like social media have made it easier for businesses to run and endpoints to collect data.
Figure 2: Encryption Software Market by Deployment, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The global encryption software market segmentation, based on service, includes professional and managed services. The professional category is anticipated to grow at a CAGR of 16.40% over the projected period, making up the largest market share because, with professional service encryption software, businesses can protect the privacy of digital data and keep this information safe. The major reason for the segment's growth is that banks and other financial companies are increasingly using professional service software.
The global encryption software market segmentation, based on the organization size, includes small, medium, and large enterprises. The large enterprises category is expected to grow fastest at a CAGR of 16.40% because more people are using cybersecurity tools to protect data privacy. Large businesses make a lot of data, so the need for encryption methods to save that data has grown among large businesses.
The global encryption software market segmentation, based on the application, includes file/folder encryption. The file/folder encryption category is expected to grow fastest because data storage is a major need for many end users, such as shopping, healthcare, BFSI, etc. As more companies move to the file, the market for file encryption solutions is likely to grow because they are flexible in terms of how they can be used and how they can be scaled.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American encryption software market will dominate because more people use the internet, and more encryption methods will probably be used. Additionally, the growing mobile wireless network has made it harder to protect data, making encryption technology an important and necessary part of every business in the area.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: ENCRYPTION SOFTWARE MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe’s encryption software market accounts for the second-largest market because it has a well-established IT and telecom industry and makes a lot of data that needs to be protected. Further, the encryption software market held the largest market share, and the UK encryption software market was the fastest-growing market in the European region.
The Asia-Pacific encryption software market is expected to grow at the fastest CAGR from 2023 to 2032 due to the increasing research and development efforts for the encryption software sector and the lack of data storage technologies, and businesses will have to put their data on a cloud server. It makes it more likely that data will be lost or stolen, driving up the demand for encryption technology in the area. Moreover, China’s encryption software market held the largest market share, and the Indian encryption software market was the fastest-rising market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the encryption software market grow even more. There are some strategies for action that market participants are implementing to increase their presence around the world's global footprint, with important market developments including new product launches, contractual agreements and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the encryption software industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer use in the global encryption software industry to benefit clients and increase the market sector. In recent years, the encryption software industry has offered some of the most significant technological advancements. Major players in the encryption software market, including Checkpoint Software Technologies Ltd. (Israel), Microsoft Corporation (U.S.), Sophos Ltd. (U.S.), EMC Corporation (U.S.), Trend Micro Inc. (Japan), Intel Security Group (McAfee) (U.S.), Symantec Corporation (U.S.), SAS Institute Inc. (U.S.), IBM Corporation (U.S.), and others are attempting to grow market demand by investing in research and development operations.
Trend Micro, a market leader in cybersecurity, contributes to the worldwide secure exchange of digital data. Millions of individuals worldwide rely on Trend Micro's cybersecurity platform to keep them safe in the cloud, on the network, with their mobile devices, and at their endpoints. Decades of experience in the field of security, analysis of global dangers, and ongoing innovation are all put to use. The platform is the industry standard in cloud and enterprise security thanks to its comprehensive suite of advanced threat protection tactics, which are tailored to run smoothly in popular cloud providers like, Microsoft Azure and Google Cloud Platform (GCP), and its centralized visibility, which allows for quicker and more accurate detection and response. Trend Micro has 7,000 workers in 65 countries who help businesses simplify and protect their connected world. In March 2023, Trend Micro, Inc. announced a world tour to more than 120 cities. It is part of the company's ongoing effort to help companies deal with rising cyber risks. The goal of Trend Micro's Risk to Resilience World Tour is to help companies learn how to take control of their risk and be successful in cyber resiliency by using a single cybersecurity platform.
Microsoft makes it possible for digital change to happen in an age of intelligent cloud and intelligent edge. Its goal is to give everyone and every organization worldwide the tools they need to do more. In 1990, Microsoft set up its business in India. Microsoft in India gives its global cloud services from local data centers to help Indian start-ups, businesses, and government agencies move faster into the digital age. In June 2023, Moody's Corporation and Microsoft recently announced a unique strategic partnership to help financial services and global knowledge workers get the next-generation data, analytics, research, collaboration, and risk tools they need. Built on Moody's strong data and analytical skills and the power and scale of Microsoft Azure OpenAI Service, the partnership creates new services that improve corporate intelligence and risk assessment. These services are powered by Microsoft AI and based on Moody's data, research, and analytics.
Checkpoint Software Technologies Ltd. (Israel)
Microsoft Corporation (U.S.)
Sophos Ltd. (U.S.)
EMC Corporation (U.S.)
Trend Micro Inc. (Japan)
Intel Security Group (McAfee) (U.S.)
Symantec Corporation (U.S.)
SAS Institute Inc. (U.S.)
IBM Corporation (U.S.)
Australian start-up Cocoon Data partnered with Google in August 2024 with the purpose of expanding the security of Google Docs through its encrypted file-sharing platform SafeShare. This partnership is focused on increasing the encryption services that businesses and governments would use. Furthermore, Cocoon Data was certified under the Federal Risk and Authorization Management Program by the US government enabling the company to work with US government agencies and the Defense industrial base. Trent Telford, the CEO, gives a rather optimistic sales forecast, stating that the company could grow into worth 152.4 million dollars.
Proton announced a new tool by the name of ProtonDocs in July 2024, emphasizing the need of the community for enhanced privacy. ProtonDocs guarantees its customers that they will have ownership of their documents created using the software for editing and collaborating making it more secure compared to Google Docs. Our broader monopoly strategy is aimed to use the current media services while selling them privately underscored by Proton’s position on secure email provider ProtonMail that was first introduced by them.
SentinelOne’s stock jump off the investor event hosted in Las Vegas in November 2024 focuses on CrowdStrike’s security weaknesses in order to advance its position in the market. This occurred after an incident when the CrowdStrike software caused the client’s computer to shut down. Using shows in Las Vegas, Singtel strives to use updates and cutting-edge IT technologies to showcase its advanced cybersecurity vulnerability to investors.
Date security software Rubrik had a share price of around 1.58 dollars when it went public, but the firm reported sensational growth and astonishing results for the first quarter, which included 187 million dollars in revenue. To their surprise, Wall Street had higher expectations, and the company wanted ARR to compound into more than 40% for the stocks to show growth while it was trailing around 38%. Despite the expectations, the Rubrik IPO managed to gain over 750 million dollars while showing fluctuations but thankfully peaked before the news report.
Encryption Software Market Segmentation
Cloud
On-Premise
Professional Service
Managed Service
Small Enterprises
Medium Enterprises
Large Enterprises
File/ Folder Encryption
US
Canada
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Attribute/Metric | Details |
| Market Size 2023 | USD 4.66 Billion |
| Market Size 2024 | USD 5.42 Billion |
| Market Size 2032 | USD 15.69 Billion |
| Compound Annual Growth Rate (CAGR) | 14.20% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Deployment, Service, Organization Size, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Aircraft Type, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Checkpoint Software Technologies Ltd. (Israel), Microsoft Corporation (U.S.), Sophos Ltd. (U.S.), EMC Corporation (U.S.), Trend Micro Inc. (Japan), Intel Security Group (McAfee) (U.S.), Symantec Corporation (U.S.), SAS Institute Inc. (U.S.), and IBM Corporation (U.S.) |
| Key Market Opportunities | Improvements in technology continue to advance |
| Key Market Dynamics | More cases of data breaches using more Internet services The emergence of interconnected technological devices |
Encryption Software Market Highlights:
Frequently Asked Questions (FAQ) :
The global encryption software market size was valued at USD 4.66 Billion in 2023.
The global market is projected to grow at a CAGR of 14.20% during the forecast period, 2024-2032.
North America had the largest share of the global market.
The key players in the market areCheckpoint Software Technologies Ltd. (Israel), Microsoft Corporation (U.S.), Sophos Ltd. (U.S.), EMC Corporation (U.S.), Trend Micro Inc. (Japan), Intel Security Group (McAfee) (U.S.), Symantec Corporation (U.S.), SAS Institute Inc. (U.S.), and IBM Corporation (U.S.).
On-premise category dominated the market in 2023.
The professional service had the largest share of the global market.
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Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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