According to a new report, published by KBV research, The Global Encryption Software Market size is expected to reach $44.9 billion by 2031, rising at a market growth of 16.0% CAGR during the forecast period.
The On-Premises segment is leading the Global Encryption Software Market by Deployment Mode in 2023; thereby, achieving a market value of $27.7 billion by 2031. Organizations that are interested in improving their data and security protocols are the primary drivers of the on-premises segment. On-premises deployment provides customization and direct administration that cloud solutions may not offer, particularly in sectors with strict regulatory requirements. This deployment mode appeals to businesses with established IT infrastructure and expertise, allowing them to retain complete oversight of encryption processes and safeguard against unauthorized access and potential security breaches.
The Small & Medium Enterprises (SMEs) segment is registering a CAGR of 16.7% during (2024 - 2031). SMEs are equally susceptible to cyber threats but often lack the resources to manage extensive in-house security systems. Encryption as a Service (EaaS) has emerged as a practical solution, allowing SMEs to access robust encryption without the overhead of managing encryption infrastructure. Moreover, the rise in digital transformation and regulatory compliance requirements has propelled SMEs to prioritize data security, with encryption software helping them safeguard customer data, ensure secure transactions, and maintain business continuity
The Disk Encryption segment is generating the maximum revenue in the Global Encryption Software Market by Application in 2023; thereby, achieving a market value of $14.5 billion by 2031. The segment is primarily driven by the need to protect entire storage devices, ensuring that data remains inaccessible even if a device is lost or stolen. This type of encryption is especially important for sectors handling sensitive information on portable devices, such as laptops and external drives, where the risk of unauthorized access is high. Finance, healthcare, and government organizations prioritize disk encryption to secure their data at rest, helping them comply with regulatory requirements and safeguard confidential information from potential breaches.
The IT & Telecom segment exhibits a CAGR of 14.8% during (2024 - 2031). This sector manages vast amounts of personal and business data in communication and digital services, making encryption critical for safeguarding privacy and ensuring secure transmission. As telecom operators expand into 5G and cloud services, encryption software becomes a foundational component in protecting sensitive user information from interception and maintaining compliance with data privacy regulations. This continuous need to secure data and support secure connectivity contributes to the segment’s substantial share of the encryption software market.
Full Report: https://www.kbvresearch.com/encryption-software-market/
The North America region dominated the Global Encryption Software Market by Region in 2023; thereby, achieving a market value of $15.6 billion by 2031. The Europe region is expected to witness a CAGR of 15.6% during (2024 - 2031). Additionally, The Asia Pacific region would capture a CAGR of 16.6% during (2024 - 2031).
By Deployment Mode
By Enterprise Size
By Application
By End Use Industry
By Geography
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