The global cloud encryption market revenue totaled USD 3.1 Billion in 2023. Expanding at a prolific 30.8% CAGR over the forecast period, the cloud encryption market size is expected to reach USD 45.6 Billion by 2033.
Report Attributes | Details |
---|---|
Cloud Encryption Market Estimated Value (2023) | USD 3.1 Billion |
Projected Market Size (2033) | USD 45.6 Billion |
Value-based CAGR (2023 to 2033) | 30.8% |
Top 5 Vendor Market Share | Around 33% |
Cloud encryption market currently accounts for around 4.5% of total cloud security market. With the advent of technologies and increase in adoption of cloud, cyber criminals are using sophisticated attacking tools to launch voluminous cyberattacks that disrupt businesses.
Organizations are focusing on cloud data encryption to mitigate cloud security challenges and privacy risks. Cloud cryptography uses encryption techniques such as symmetric encryption and asymmetric encryption to protect sensitive data stored within the cloud from unauthorized users and prevent breach of data.
By adopting robust encryption and maintaining good decryption keys, enterprises can safeguard cloud data, protecting it from hackers and users with malicious intent.
Market Statistics | Details |
---|---|
Jan-Jun (H1), 2021 (A) | 30.9% |
Jul-Dec (H2), 2021 (A) | 31.3% |
Jan-Jun (H1),2022 Projected (P) | 31.2% |
Jan-Jun (H1),2022 Outlook (O) | 32.5% |
Jul-Dec (H2), 2022 Outlook (O) | 31.8% |
Jul-Dec (H2), 2022 Projected (P) | 31.5% |
Jan-Jun (H1), 2023 Projected (P) | 32.1% |
BPS Change : H1,2022 (O) - H1,2022 (P) | (+)130 |
BPS Change : H1,2021 (O) - H1,2021 (A) | (+)160 |
BPS Change: H2, 2022 (O) - H2, 2022 (P) | (+)30 |
BPS Change: H2, 2021 (O) - H2, 2022 (A) | (+)50 |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
The cloud encryption demand is estimated to grow at a CAGR of 30.9% between 2023 and 2033, in comparison to the CAGR of 27.9% registered between 2018 to 2022.
Earlier, enterprises were involved in management and maintenance of physical, on-premises components which resulted in high installation and maintenance costs and increased the need to purchase infrastructure to store more data.
Adoption of cloud storage has increased as there has been a significant reduction in buying, managing, and maintaining in-house storage infrastructure. Heavy dependency on technology has led to an exponential rise in cyber-attacks, and companies have started investing in encryption technology. Cloud encryption solutions encrypt the connection between cloud and the end point, providing end-to-end encryption and keeping the data private.
The cloud encryption solution segment is estimated to account for a dominant share of 59.6% in 2023. Owing to high adoption of cloud encryption solutions among enterprises, North America is currently dominating the global market.
Enterprises are adopting digital transformation to enhance the efficiency of operations. The pandemic came as a catalyst and prioritized the companies’ digital transformation journey, making cloud adoption a priority for organizations for improving productivity, growth, and sustainability.
Cloud adoption offers service models such as Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) that automate the business process, reduce IT overhead costs, help in scaling IT processes and improve overall flexibility of the business process.
The necessity to deploy security measures designed to safeguard cloud-based infrastructure, applications, and data from DDoS attacks, hackers, malwares, and unauthorized user access is propelling the adoption of encryption tools.
By investing in powerful encryption, companies are gaining operational safety and data security that complies with regulations. With growing demand for cloud encryption software and services, the market is expected to expand at a considerable pace over the assessment period.
Cloud storage security is one of the most important issues in cloud computing. Companies using cloud computing for various business processes undergo challenges regarding the protection these systems against cyber-attacks.
These companies use standard encryption methods to secure their processes by encrypting data before storing it to the cloud. The encrypted data needs to be decrypted at every operation by providing private keys to server before executing the required calculations. This affects the confidentiality of data stored in the cloud storage.
Homomorphic encryption is the new security concept capable of performing operations on encrypted data without decrypting the data, which means data processing can be outsourced to a third party without relying on it to keep the data secure. The original data cannot be accessed without the correct decryption key.
The fact that it uses an algebraic system to let users to do a range of computations (or operations) on the encrypted data sets makes it distinct from other types of encryption. It allows to preserve confidentiality of sensible data and to benefit from cloud computing capabilities.
Organizations in the USA are Adopting Encrypted Cloud Backup Services
Demand for cloud encryption in the USA is expected to account for nearly 71.5% of the North America market share by 2033. Rising adoption of cloud-based solutions in the USA as they are in the process of shifting from on-premise solutions to cloud-based platforms will fuel growth in the market.
Also, cyber-attacks such as ransomware attacks, DDoS attacks and data breaches are increasing in the USA. Thus, changes and significant investments in cloud security will drive sales of cloud encryption techniques in the country.
Surging Demand for Encrypted Personal Cloud Storage in Indonesia Will Fuel Growth
Sales in Indonesia are estimated to grow at an impressive rate of around 43.2% CAGR between 2023 and 2033. Indonesia is adopting digital technologies to automate and streamline businesses with a clear vision to achieve scalability, security, and agile frameworks in the country.
The pandemic has propelled the demand for hybrid cloud solutions in Indonesia as local enterprises shifted to remote work. With the expansion of Indonesia’s digital footprint, security remains one of the most important considerations among Indonesian businesses. With the growing need for cybersecurity, the demand for cloud encryption software and services are expected to increase in the country.
Countries | BPS Change (H2'22 (O) - H2'22 (P)) |
---|---|
Canada | (+)35 |
France | (+)33 |
Indonesia | (+)32 |
Japan | (+)31 |
China | (+)29 |
The H2’22(O)-H2’22(P) BPS change in Canada was of (+)35 units attributed to the increasing adoption of cloud computing is one of the primary factors driving the growth of the cloud encryption market. As more and more organizations move their data and applications to the cloud, the need for secure data storage and transmission is becoming more important. Where as in France the rise in cyber threats and data breaches, organizations are increasingly concerned about the security of their data. Cloud encryption provides an added layer of protection for sensitive data stored in the cloud leading to the deviation of (+)33 units.
Many industries are subject to strict regulatory compliance requirements regarding the protection of sensitive data. Cloud encryption can help organizations meet these requirements and avoid costly fines for non-compliance resulting in China a BPS change of (+)29 units.
Indonesia encountered a BPS change of (+)32 units for the cloud encryption market as encryption technology has advanced significantly in recent years, making it easier and more cost-effective to implement cloud encryption solutions. This has made it more accessible for smaller organizations to implement cloud encryption.
Japan witnessed a BPS of (+)31 BPS units for the cloud encryption market as more organizations adopt cloud encryption, awareness of the benefits is increasing. Cloud encryption can help organizations protect their sensitive data, reduce the risk of data breaches, and improve overall data security.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
Rapid Adoption of Cloud Encryption Services Will Augment Growth
The cloud encryption service segment is expected to create an absolute USD opportunity of USD 14.3 Billion by 2033. Businesses can focus on their core competencies by outsourcing cloud services to a third party, enhancing overall efficiency.
With the emergence of the Pay-As-You-Go (PAYG) model and improved flexibility, small and mid-sized organizations have emerged as the most potential cloud service consumers. Managed cloud encryption services help in laying a strong foundation for security in the cloud that is automated with 24/7 management.
Applications of SaaS Service Models to Remain High
In terms of service model, the SaaS model segment accounted for around 46.3% of the total market share in the global cloud encryption market in 2023. In addition, this segment is likely to grow by 14.3X between 2023 & 2033. SaaS allows enterprises to use cloud-based web applications with a Pay-As-You-Go (PAYG) pricing model.
Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and other emerging technologies are powering SaaS offerings and adoption. Enterprises are benefitting from sophisticated SaaS solutions as they are cost-effective.
Sales of Cloud Encryption in SMEs Will Continue Gaining Momentum
Based on enterprise size, the small and mid-sized enterprises (SMEs) segment is likely to expand by 16.8X during the period. As SMEs have a limited budget for managing business operations and other activities, they are turning to cloud-based solutions to meet their growing business requirements.
As cyber threats are more frequent in SMEs, encryption solutions enhance the security levels of the company’s data by encrypting information and securing it from the reach of hackers. A cloud encryption solution can easily flex and scale to accommodate changing workloads.
Demand for Cloud Encryption in the BFSI Sector Will Gain Traction
In 2023, the BFSI industry dominated the market with the highest share of around 24.2%. The BFSI sector has strong data security requirements as it deals with sensitive and private data of account holders. Banks have enhanced their cybersecurity infrastructure to detect cyber risk with increased investments in cloud encryption.
Cloud data encryption solutions help the BFSI sector by ensuring the security and confidentiality of customer records and information, protection against threats or hazards to the integrity of data, and prevention of unauthorized access. Also, an increase in digital payments is propelling the risk of cyberattacks, which is expected to fuel sales in this segment over the forecast period.
Players in the cloud encryption market are focusing on a variety of strategies, including research and development and investments to support future technologies. In addition to this, players are pursuing inorganic growth strategies such as acquisitions and partnerships with other companies to develop their own cloud encryption to reduce the churn rate.
For instance:
Attribute | Details |
---|---|
Forecast Period | 2023 to 2033 |
Historical Data Available for | 2018 to 2022 |
Market Analysis | USD Billion for Value |
Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; and the Middle East & Africa |
Key Countries Covered | The USA, Canada, Germany, the United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Malaysia, Indonesia, Singapore, Australia & New Zealand, GCC Countries, Turkey, North Africa and South Africa |
Key Segments Covered | Component, Service Model, Enterprise Size, Industry and Region |
Key Companies Profiled | IBM; Sophos Group plc; Thales Group; Skyhigh Security; Microsoft; Netskope Inc; Lookout; Cisco Systems, Inc; Micro Focus International plc; Atos; Hitachi Solutions, Ltd; Hewlett Packard Enterprise; NortonLifeLock; Trend Micro; TWD Industries; Dell Technologies; WinMagic |
Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market will secure a valuation of USD 3.1 billion in 2023.
The market will reach USD 45.6 billion in 2033.
The market will rise at a 30.8% CAGR from 2023 to 2033.
United States, United Kingdom, Japan, Germany and
Cloud adoption and homomorphic encryption for cloud security are likely to drive the market.
Explore Technology Insights
View Reports