The global encryption software market is projected to exceed $22.1 billion by 2026, according to a new report by MarketsandMarkets.
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A compound annual growth rate (CAGR) of 15.2% is anticipated for the market between 2021 and 2026, with the IT and telecommunications industries driving the demand for encryption software.
Regulations for data protection, growing concerns over loss of critical data, and an exponential increase in the adoption of cloud and virtualization technologies will also propel the market.
Major players in the global encryption software market include IBM, Microsoft, and Broadcom.
Within the market forecast period, the on-premises segment is forecast to account for the greatest market share of all software deployment models.
“The on-premises deployment mode is majorly used by critical information industries due to the high security associated with managing sensitive data in-house. Organizations that manage large volumes of sensitive data, especially government agencies, financial companies, and healthcare, still rely on-premises solutions - due to concerns around data security and privacy,” according to MarketsandMarkets’ report.
Furthermore, telecom and IT markets are expected to grow at the highest CAGR over the forecast period. The use of encryption software will help the industries comply with regulations, such as AES, PCI DSS, and GDPR.
By region, APAC is slated to grow at the highest CAGR during the forecast period. The increasing threat of spear phishing, malware, ransomware, and business email compromise can be attributed to the growth in the region.
A study by threat intelligence provider FireEye revealed that Asia Pacific countries are more susceptible to cyberattacks than their western counterparts.
