Encryption software market size is estimated to grow from USD 3.05 Billion in 2016 to USD 8.94 Billion by 2021, at an estimated CAGR of 24.0% as per a report by MarketsandMarkets.
The encryption software solutions safeguard business information from unauthorized access and theft from inside and outside of the organization. Moreover, increasing frequency of cyber-attacks on enterprises across various industry verticals is expected to drive market growth over the forecast period.
The major forces driving the Encryption Software Market are increasing need to safeguard critical organizational data against unauthorized access, compliance to cybersecurity regulations and guidelines, and increasing dynamicity of the business environment. Globalization of business has given rise to new and sophisticated threats putting critical data at risk. Moreover, with the increasing implementation of Bring Your Own Device (BYOD) trend to boost employee efficiency has further escalated the issues pertaining to data theft and loss. This has led businesses to stringently follow regulations and compliances during the deployment of cyber security solutions to safeguard their business critical information against possible abuse.
Disk encryption is expected to have the largest market share and dominate the Encryption Software Market from 2016 to 2021, due to the growing demand for hardware-based encryption to ensure data security at the source. Cloud encryption is expected to play a key role in changing the encryption software landscape and is projected to grow at the highest growth rate during the forecast period owing to the increasing adoption of cloud-based encryption and solutions across SMEs and large enterprises.
BFSI vertical is expected to contribute largest market share in encryption software market, as the sector holds critical financial information, which are considered as the prime target for cyber criminals. Telecom and healthcare sectors are expected to grow with the highest CAGRs from 2016 to 2021, in the encryption software market, due to the increase in the amount of personal and health-related data being stored on cell phones, wearables, and the internet.
North America is expected to have the largest market share and dominate the Encryption Software Market from 2016 to 2021, due to the presence of large number of encryption software vendors across the region. APAC offers extensive growth avenues in the encryption software market, owing to a wide-spread presence of SMEs that are implementing enhanced encryption software solutions to prevent unauthorized access to critical business data and unethical use of such information.
The major vendors in the Encryption Software Market include Microsoft, Sophos, CheckPoint, Trend Micro, Symantec, IBM, SAS Institute, Intel Security Group (McAfee), EMC, and WinMagic, and others. Other noticeable vendors include Gemalto NV, and PKWARE.