Encryption software provides a lucrative opportunity for the channel as the global market is expected to more than double by 2024, reaching $16.5 billion.
That’s according to a new report by MarketsandMarkets, which expects a compound annual growth rate of 17 percent. The market is valued at $7.5 billion this year.
Among the major vendors in the market are IBM, Microsoft, Symantec, Trend Micro, Sophos, Check Point Software Technologies, McAfee and Dell.
The report identifies several major factors fueling growth, including rising concerns about loss of critical data, stringent regulatory standards and data privacy compliance, according to the report. An increasing demand for integrated data protection solutions and encryption as a service among SMEs could provide growth opportunities for vendors in the market.
The market is segmented on the basis of applications: disk encryption, file/folder encryption, database encryption, communication encryption and cloud encryption. The disk encryption segment is expected to hold the largest market size through 2024. Currently, enormous amounts of data are being generated and stored across organizations, and it has increased the cost of protecting critical data against thefts and breaches.
The services category includes professional services and managed services. The managed services segment is expected to grow at a faster pace as managed services provide traders with support, maintenance and infrastructure management for securing and ensuring privacy of data. The vendors in the market offer services to end users so that they can manage and deploy encryption software solutions.
North America is the largest revenue contributor to the global market. North American countries have well-established economies, which enable encryption software vendors to invest in innovative technologies. The region also is regarded as the center of innovations, as major North American IT companies roll out new offerings and aggressive collaborations take place in the region. They also are adopting various growth strategies to strengthen their positions in the market.