The global cloud encryption market is expected to quadruple from $645.4 million this year to $2.4 billion by 2022. That’s a compound annual growth rate of 30 percent.
That’s according to a new report by MarketsandMarkets, which IDs Sophos, Trend Micro and Symantec among the major vendors. Others include Thales e-Security, Gemalto, Skyhigh Networks, Netskope, CipherCloud, HyTrust, Vaultiv and TWD Industries.
The demand for cloud encryption mostly is driven by stringent government regulations and the need to protect mission-critical data residing in the cloud, the report says. With the rising demand for cloud and virtualization across numerous verticals, the adoption rate of cloud encryption among enterprises is expected to gain major traction over the next five years.
The infrastructure-as-a-service (IaaS) model is expected to hold the largest market share. It’s used to run applications on the public cloud and it allows organizations to reduce the total cost of ownership since it’s being provided by third-party vendors in the form of cloud-based data centers. However, virtualization introduces new security challenges, so enterprises are adopting cloud encryption to run business-critical functions securely.
The telecom and IT vertical is expected to grow the fastest. That’s due to heavy use of cloud-based applications for business operations, frequent targets for cybercriminals.
North America is expected to have the largest market share and to dominate the market from 2017 to 2022, due to the early adoption of new and emerging technologies and the presence of a large number of players in this region. Asia Pacific offers extensive growth opportunities due to the large number of SMEs that are extensively adopting cloud technology.