Cloud Encryption Software Market - By Application (Disk Encryption, File Encryption, Database Encryption, Communication Encryption), By Enterprise Size (SMEs, Large Enterprises), By Component, By Industry Vertical, Forecast 2023 - 2032
Published Date: March - 2025 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationCloud Encryption Software Market - By Application (Disk Encryption, File Encryption, Database Encryption, Communication Encryption), By Enterprise Size (SMEs, Large Enterprises), By Component, By Industry Vertical, Forecast 2023 - 2032
Cloud Encryption Software Market Size
Cloud Encryption Software Market was valued at USD 3.5 billion in 2022 and is expected to register a CAGR of more than 22.5% during the forecast period of 2023-2032. As cloud services are being used more and more, data privacy and security have become topmost priorities for people and organizations. The requirement to safeguard sensitive information from cyber attacks and unauthorized users has driven the demand for cloud encryption software.
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For example, in December 2022, Apple announced three new tools to further protect data in the cloud. The first, iMessage Contact Key Verification, enables users to verify that they are messaging only with their intended recipients, keeping it private, and avoiding eavesdropping. The second, Security Keys for Apple ID, gives users the ability to require a physical security key from a third-party to access their Apple ID, thereby preventing potential phishing attacks. The third, Advanced Data Protection for iCloud, takes data protection to its maximum level in 23 categories, including iCloud Backup, Photos, Notes, and other iCloud data, strengthening Apple's dedication to protecting user data.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Cloud Encryption Software Market Size in 2022 | USD 3.5 Billion |
| Forecast Period | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR | 22.5% |
| 2032 Value Projection | USD 27 Billion |
| Historical Data for | 2018 to 2022 |
| No. of Pages | 250 |
| Tables, Charts & Figures | 340 |
| Segments covered | Application, enterprise size, component, and industry vertical |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
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Adherence to data protection laws like GDPR, HIPAA, and CCPA will also drive the use of encryption solutions, fueling the cloud encryption software market. Increased use of quantum-safe encryption will fuel the cloud encryption business expansion. With advancements in quantum computing technology, the vulnerability of conventional encryption techniques rises. To counter this, there is an increasing trend towards the creation and implementation of quantum-safe encryption solutions. These encryption technologies are built to withstand attacks from quantum computers, which have the capability to compromise present encryption schemes. The market is expected to witness greater curiosity and uptake of quantum-resistant encryption technologies.
Though data security is of utmost importance, the expense of installing and sustaining cloud encryption software can be a major limiting factor in its adoption. This involves the initial expenditure on encryption solutions, regular maintenance, and the expense of encryption key management. Some organizations might view these expenses as deterrents, particularly if they are under budget constraints or if they feel that other security solutions are adequate for their purposes.
COVID-19 Impact
The pandemic caused by COVID-19 significantly affected the cloud encryption software market. Due to the sudden change in working patterns and greater dependence on cloud services, organizations saw the increased significance of cloud data security. This perception triggered the demand for cloud encryption solutions as companies tried to safeguard sensitive data and maintain data privacy in the new remote work environment, boosting the market.
Cloud Encryption Software Market Trends
Growing cyber threats may define the cloud encryption industry trend in the next decade. Cyber threats, which comprised data breaches, ransomware attacks, and insider threats, kept on changing and becoming more complex. For example, according to IT Governance, cyber-attacks were the most prominent trend in security incidents in 2022. Of all publicly reported incidents, a whopping 57% totaled 611 cyber attacks, making them the most common threat. At the same time, there were 255 ransomware attacks that were discovered, representing 24% of all reported incidents. Ransomware, a weapon of choice for cybercriminals, has witnessed growth over the last five years, with a remarkable spike in 2021 when 401 incidents were made public. Consequently, there was greater awareness of encryption as a tool to protect information from such threats. Cloud encryption software was perceived as an essential part of a comprehensive cybersecurity solution, and that propelled its uptake.
Rising use of quantum-safe encryption will drive the business growth of cloud encryption. As quantum computing develops, the threat to conventional methods of encryption increases. To address this, an increasing trend in the creation and implementation of quantum-safe encryption algorithms is being seen. These techniques are developed with the ability to withstand attacks by quantum computers that may break encryption algorithms in place today. Quantum-resistant encryption practices are expected to gain more attention and adoption in the market.
Cloud Encryption Software Market Analysis
Get to know the major segments driving this market, in detail.
On the basis of enterprise size, the market is categorized into SMEs and large enterprises. The large enterprises segment had approximately 69% of the business share in 2022 and is expected to develop tremendously in the market. Large organizations are exposed to increased security threats due to remote work and use of cloud services. Cloud encryption software solutions offer a layer of security that assists in protecting sensitive information from cyber attacks, guaranteeing data compliance and reducing the possible financial and reputational losses that come with data breaches. They give confidence and allow big businesses to stay trusted and keep operations running smoothly in a digital age.
Discover more about the most important segments influencing this market
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On the basis of industry vertical, the cloud encryption software market is divided into BFSI, healthcare, aerospace & defense, IT & telecom, retail, government & public utilities, and others. The BFSI sector held a business share of approximately 25% in 2022 and is expected to fuel market growth. With financial institutions moving data and services to the cloud in increasing numbers, the demand for secure encryption takes precedence. Such solutions enable BFSI organizations to safeguard confidential customer data, financial data, and transactions against cyber attacks and comply with harsh industry regulations. Through the safeguarding of data privacy and security, cloud encryption software not only prevents possible breaches but also maintains the reputation of the industry as a benchmark for trust and reliability.
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North America is experiencing growth in the cloud encryption software market. The region accounted for a market share of around 46% in 2022 and is expected to register significant growth over the forecast period. North American businesses prioritize data security and compliance, particularly with stringent data protection laws like GDPR and CCPA. The region's large and diverse business landscape, including technology companies and financial institutions, has a strong appetite for cloud encryption solutions to protect sensitive data. Additionally, the region's mature cloud infrastructure, coupled with a proactive approach to cybersecurity, is driving the adoption of these solutions, making North America a thriving market for cloud encryption software.
Cloud Encryption Software Market Share
The major players operating in the cloud encryption software industry are
- Check Point Software Technologies Ltd.
- Dell Technologies Inc.
- Hewlett Packard Enterprise
- Intel Corp.
- Proofpoint Inc.
- Sophos Ltd.
- Symantec (Broadcom)
- Thales Group
- Trend Micro Inc.
Companies within the market are proactively engaging in strategic endeavors to strengthen their market presence. These initiatives encompass the adoption of cutting-edge AI and cloud technologies, forging crucial partnerships, diversifying their service portfolios, and reinforcing data security measures. The overarching goal is to effectively cater to the evolving needs of their clientele while aligning with ever-changing regulatory requirements.
Cloud Encryption Software Industry News
- In September 2023, Thales announced the introduction of CipherTrust Cloud Key Management's Hold Your Own Key (HYOK) in Oracle Cloud Infrastructure (OCI) across all 45 Oracle Cloud Regions, including the recently launched Oracle EU Sovereign Cloud, as well as OCI's other distributed cloud offerings. HYOK will help OCI customers achieve their data sovereignty and other compliance objectives more easily by encrypting data in OCI with keys controlled and managed outside of the cloud platform. The new HYOK capabilities complement OCI's existing support for Bring Your Own Key (BYOK).
The cloud encryption software market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032 for the following segments
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By Application, 2018 – 2032
- Disk Encryption
- File Encryption
- Database Encryption
- Communication Encryption
By Enterprise Size, 2018 – 2032
- SMEs
- Large Enterprises
By Component, 2018 – 2032
- Software
- Services
By Industry Vertical, 2018 – 2032
- BFSI
- Healthcare
- Aerospace & defense
- IT & Telecom
- Retail
- Government & Public Utilities
- Others
The above information is provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Nordics
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- South Africa
- UAE
- Saudi Arabia
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