The global encryption software market is expected to more than triple in size by 2022, reaching nearly $13 billion.
That’s according to a new report by MarketsandMarkets, which predicts a compound annual growth rate (CAGR) of 27.4 percent. The market is $3.87 billion today.
Dell, McAfee, Microsoft and IBM are listed among the major vendors in this market. Others include Symantec, Sophos, Trend Micro, Thales e-Security, Gemalto, PKWARE, CipherCloud and ESET.
Market drivers include stringent government regulations and the need to protect critical organizational data. With increasing demand for cloud and virtualization across different verticals, the adoption rate among enterprises is expected to gain major traction in the next five years.
Disk encryption is expected to hold the largest market share. Employees have the freedom to carry their own devices, and the exchange of critical data is made possible on those devices; therefore, the adoption of strong encryption can protect the confidential data, even if the device is lost or stolen, according to MarketsandMarkets.
Among verticals, telecom and IT is expected to grow the fastest during the forecast period. This vertical is a key target for hackers, due to the massive and increasing amount of personal data being managed on cell phones, satellites and the internet.
Among regions, North America is expected to hold the largest market share by 2022, as businesses are more focused on securing data at rest, in transit and in use. In addition, they have made big investments in advanced technologies to gain a competitive advantage and improve business operations.
Asia Pacific (APAC) is expected to grow the fastest. The increasing adoption of encryption software in this region is due to the widespread presence of SMEs that are implementing enhanced encryption to prevent unauthorized access to critical business data residing on enterprise networks and databases — and the unethical use of such information.
The global cloud encryption market is expected to quadruple from $645.4 million this year to $2.4 billion by 2022.