Encryption Software Has Bright Future

With publicized data losses, and new governance and compliance regulations, the global encryption software market is expected to reach $8.4 billion by 2024, with a compound annual growth rate (CAGR) above 14 percent.

That’s according to a new report by Grand View Research. Encryption software applies algorithms to readable text, turning it into unreadable text. Data is encrypted for secure storage and transmission.

Concerns regarding data security are on the rise with the growing trend of BYOD and the Internet of Things (IoT) among enterprises, according to the report. This has further resulted in increased data breaches, commercial espionage, cyberattacks, and theft and loss in companies, which is expected to drive the demand, it said.{ad}

Organizational best practices point toward data encryption as a key answer for data privacy; however, lack of budget is the key reason cited by organizations for being unable to make extensive investments in data encryption, and this is expected to challenge industry demand, the report said.

The industry includes several new and well-established players. Notables include Bloombase, Microsoft, Symantec, Intel Security (McAfee), Sophos, Check Point Software Technologies, EMC and Cisco.

The banking, financial services and insurance segment captured more than 25 percent of the overall revenue share in 2015 and is anticipated to grow at a CAGR exceeding 16 percent from 2016 to 2024.

The on-premises segment accounted for more than 60 percent of revenue in 2015; however, cloud encryption is estimated to grow substantially over the forecast period at a CAGR of more than 15 percent, fueled by expanding cloud infrastructure and several companies adopting cloud storage offerings.

Disk-encryption growth is anticipated to grow more than 15 percent annually from 2016 to 2024. This prediction is attributed to the increasing adoption of disk-coding software to secure desktop and laptops by encrypting all the data at rest on a hard drive.