The global encryption software market size was valued at USD 13.46 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 16.2% from 2023 to 2030. Data security concerns are rising with the growing trend of the Internet of Things (IoT) and Bring Your Own Device (BYOD) among enterprises. It has further led to increased instances of cyberattacks, commercial espionage, data breaches, and theft & losses in companies, which is poised to escalate the need to protect sensitive data and ensure compliance.

Mobile technology advancements in hardware and software, their dissemination among businesses, and the growing penetration of smartphones are likely to catapult the demand for encryption software by 2030. The growing penetration of mobile devices across organizations has augmented the risk of data loss among enterprises, which has made executing encryption software imperative for safe data transmission. Furthermore, as enterprises are increasingly moving towards cloud computing, the need to safeguard sensitive data is increasing, thus resulting in increased deployment of this software.

Gather more insights about the market drivers, restrains and growth of the Encryption Software Market

Detailed Segmentation:

Deployment Insights

The widespread acceptance of social media, the Internet of Things (IoT), and the Internet of Everything (IoE) have enhanced business functioning and increased data being generated and retrieved through mobile devices. These factors are estimated to fuel the demand for on-premise and cloud-based deployment in the coming years. The on-premise segment held 66.0% of the overall revenue share in 2022. However, the cloud-based segment is expected to register the fastest CAGR of 16.7% over the forecast period.

End-use Insights

The BFSI segment accounted for a dominant share of 32.3% in the market in 2022. It is further estimated to advance with the largest CAGR of 18.0% during the forecast period. The dynamic nature of the security industry and the rising number of cyberattacks result in an increased need to protect sensitive financial data from breaches with maximum returns and minimum risk. As banking institutions increasingly adopt cloud solutions, the segment is anticipated to experience a higher potential for deploying these security solutions.

Application Insights

The disk encryption segment dominated the market with the highest revenue share of 36.7% in 2022. Encrypted disks are safe as even if they get stolen or misplaced, access to their contents remains limited to authorized users. With the emergence and growing prominence of the BYOD trend, the exchange of critical data has become possible on employee devices. This has further augmented the need for strong encryption techniques.

Regional Insights

North America dominated the market with the largest revenue share of 37.2% in 2022, owing the increased internet penetration in the region. Additionally, the presence of a well-established and renowned IT & telecom sector is also driving market growth in the region. The Asia Pacific is expected to expand at the fastest CAGR of 20.5% during the forecast period. The region is expected to be very promising for companies, owing to a lack of storage infrastructure, prompting organizations to store data on the cloud. It increases the risk of thefts & data losses, thus stoking the demand for encryption software.

Browse through Grand View Research's Network Security Industry Research Reports.

• The big data security market size was estimated at USD 20.82 billion in 2023 and is anticipated to grow at a CAGR of 17.3% from 2024 to 2030. 

• The global deep packet inspection market sizewas valued at USD 26.83 billion in 2023 and is projected to grow at a CAGR of 25.1% from 2024 to 2030.

Key Encryption Software Companies:

• Bloombase
• Cisco Systems, Inc.
• Check Point Software Technologies Ltd.
• Dell Inc.
• IBM Corporation
• McAfee, LLC
• Microsoft
• Oracle
• Sophos Ltd.
• Broadcom
• Trend Micro Incorporated
• WinMagic

Encryption Software Market Segmentation

Grand View Research has segmented the global encryption software market based on deployment, application, end-use, and region:

Encryption Software Deployment Outlook (Revenue, USD Million, 2017 - 2030)

• On-premise
• Cloud-based

Encryption Software Application Outlook (Revenue, USD Million, 2017 - 2030)

• Disk encryption
• File/Folder Encryption
• Database Encryption
• Web Communication Encryption
• Network Traffic Encryption
• Cloud Encryption
• Others

Encryption Software End-use Outlook (Revenue, USD Million, 2017 - 2030)

• BFSI
• IT & Telecom
• Retail
• G&PA
• Healthcare
• Defense & Aerospace
• Education
• Manufacturing

Encryption Software Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
• Asia Pacific
  • China
  • India
  • Japan
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • United Arab Emirates (UAE)
  • Saudi Arabia
  • South Africa

Order a free sample PDF of the Encryption Software Market Intelligence Study, published by Grand View Research.

Recent Developments

• In June 2023, Amazon Web Services (AWS) introduced a new encryption option called Amazon S3 dual-layer server-side encryption with keys stored in AWS Key Management Service (DSSE-KMS). This advanced feature enhances the security of objects uploaded to an Amazon Simple Storage Service (Amazon S3) bucket by applying two layers of encryption. By utilizing DSSE-KMS, customers can meet regulatory requirements and apply multiple layers of encryption to their data, ensuring enhanced data protection
• In May 2023, Vaultree significantly improved safeguarding healthcare data by introducing its state-of-the-art, fully functional Data-in-Use encryption solution to the industry. Accompanied by an innovative software development kit and an encrypted chat tool, Vaultree's technology transforms the data encryption landscape. It offers comprehensive protection for sensitive patient data, ensuring its security even during a breach, while maintaining operational efficiency and performance
• In February 2023, Irdeto, a digital platform cybersecurity provider, introduced an enhanced version of its software development kit (SDK) known as ActiveCloak for Media (ACM). This upgraded solution incorporates multiple layers of security to safeguard against the unauthorized extraction of content encryption keys from devices