Global Email Encryption Market - 2022-2029
Email encryption market was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 23.5% during the forecast period (2022-2029).
Email encryption refers to disguising and obfuscating the contents of an email to prevent interception by a third party. It ensures that the information contained within the email is read by the intended recipient only. Email encryption involves the encryption of connection from the email service provider and the encryption of sent, received and stored emails.
Email encryption typically requires a secure, two-factor authentication for accessing the emails. SSL, TLS and STARTTLS are commonly used email encryption protocols. With the growth of cloud email services and the rising frequency of phishing attacks, the adoption of email encryption has increased.
The email encryption demand is mainly driven by the increasing frequency of email phishing attacks. The operational drawbacks of email encryption are a key factor in limiting the growth of this market.
The increasing frequency of email phishing attacks
In recent years, the growth of digitization and the proliferation of cheaper internet services have increased. Almost all major functions of everyday life such as banking, grocery shopping, entertainment and communication can be carried out online. In the modern age, an email address is virtually as important as a physical address since an email address is a basic requirement for online interaction. More and more official and important data, transactions and communications are being carried out using emails.
The growth of email has led to a corresponding rise in email phishing. Due to the interconnected nature of digital systems, phishing attacks result in massive data breaches, identity theft and financial losses. As more and more of the global population goes online, the intensity of phishing attacks has been increasing in recent years. Proofpoint, Inc., a cybersecurity services company, conducted a study in 2020 that estimates that more than 83% of business organizations globally have experienced an email phishing attack. Business organizations implement security measures such as email encryption in response to growing phishing attacks. It is a major driver of the growth of the global market.
Operational drawbacks of email encryption services
Although using email encryption services drastically reduces the likelihood and impact of a cyberattack, it still suffers from various operational drawbacks. Cyberthreats are evolving in real-time, leaving cybersecurity service providers at a disadvantage. Furthermore, there are always several inherent flaws within the system architecture of email encryption applications.
Cybercriminals use these security flaws to breach email encryption and carry out attacks. Cybersecurity companies provide almost immediate patches and updates to remove vulnerabilities and flaws; however, a lot of damage might be done within that timeframe. After sustained efforts, lower-end email encryption applications have weaker algorithms that hackers can crack.
Another major drawback is the human factor. The best email encryption is worthless if the human operator does not exercise basic cybersecurity precautions. Clicking on infected links, opening phishing emails and careless operation of email accounts are some human mistakes that cannot be accounted for by email encryption. Therefore, operational drawbacks of email encryption are a key challenge for the growth of the global market.
COVID-19 impact analysis
The COVID-19 pandemic had an uneven impact on the global email encryption market. Various industries instituted remote work from home (WFH) were instituted by various industries for ensuring continuity of operations during the pandemic. The increased reliance on digital technologies and emails for communications presented major opportunities for cybercriminals.
Cybercriminals often sent emails impersonating the world health organization (WHO) and other reputed public health agencies with supposed information on preventing the spread of the pandemic. Once the target clicked the email, malware would take over the computer system and steal data and other information. According to its internal research, F5, Inc., a cybersecurity services company, email phishing attacks during the COVID-19 pandemic increased 220% over the same period.
Companies, therefore, increasingly opted for email encryption services and the pandemic period led to robust growth in the global market. However, government movement restrictions and lockdowns slowed the development and deployment of new services considerably. It also hampered the ability of cybersecurity companies to respond proactively to emerging threats since coordinating remotely is much more challenging.
The impact of the pandemic has been negligible on the email encryption market. The pandemic will not impact the long-term growth prospects of the global email encryption market since growing cyber threats and phishing attacks will rise in the coming years. The demand for email encryption s remains strong and is expected to grow gradually in the coming years.
The global email encryption market is segmented into type, component, enterprise, end-user and region. The email encryption market by end-user is further segmented into BFSI, consumer goods and retail, manufacturing, IT and ITeS, healthcare, transportation, government and military and others.
BFSI is leading this segmentation since it has become an end-user of email encryption services. Due to the rapid proliferation of online and digital banking services, data security has become paramount. Email phishing can lead to massive financial and data losses for banks and consumers. Therefore, almost all leading global banks have adopted email encryptions for B2B and B2C communication.
North America is leading in the global email encryption market. The region is home to developed, high-income countries with major high-technology industries. U.S. is leading in North America due to its world-leading IT industry. Many global corporations across various industrial domains are based in U.S.
North America has some of the highest incidences of cybercrimes, such as email phishing and data breaches. Domestic or foreign entities mainly carry out cybercrimes. Due to its leading position across various industries, U.S. is a major target for cybercriminals and foreign competitors looking to access proprietary, confidential data of companies and organizations.
U.S. government and U.S. military are also major targets for email phishing and cyberattacks, given the country's prominence as a global superpower. Entities linked to foreign governments have used email phishing as the main method to gain unauthorized access to U.S. government and internal military data. Therefore, North America generates massive demand for email encryption and other cybersecurity applications and services. North America will continue to have the largest market share in the global email encryption market in the coming years.
The global email encryption market is competitive due to various email encryption software and services catering to different end-use applications. Some of the major players contributing to growth in the market are Cisco Systems, Inc., Broadcom Inc, Micro Focus, Sophos Ltd., Trend Micro Incorporated, Virtru, CipherMail B.V., Proton AG, Proofpoint, Inc. and BAE Systems. The major players in the market adopt several growth strategies such as new product launches, upgradation of existing products, cybersecurity research, collaborations and government tie-ups to contribute to the growth of the global industry.
Cisco Systems, Inc.
Overview: Cisco Systems Inc. is major network equipment and service provider company. The company was founded by two Stanford University computer scientists who wanted to make connecting different types of computer systems easier. Cisco Systems, which launched its first product in 1986 and now employs over 60,000 people in over 115 countries, is a multinational corporation. Americas, Europe, Middle East & Africa and Asia-Pacific (Japan and China) are the three geographic divisions in which the corporation operates. Cisco products provide the networking foundations for service providers, small to medium businesses and enterprise customers, including businesses, government agencies, utilities and educational institutions. Cisco Systems, Inc. was established in 1984 and is headquartered in San Jose, California, U.S.
• Cisco Secure Email is the company's proprietary email encryption for various commercial applications. Cisco Secure Email has a complex encryption algorithm and a two-step verification process to ensure maximum security. The email encryption system is easy to use and integrated with various email service providers. The email encryption application gives the user organization total control over the data transmitted by emails through its domain. It allows the user organization to self-destruct email messages remotely to prevent data theft.
• In February 2022, Cisco Systems, Inc. addressed a major vulnerability that allowed hackers and cybercriminals to crash the cisco secure email application using malicious email. The company released a statement stating that it has fixed the security flaw.
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• Visualize the composition of the email encryption market segmentation by the type, component, enterprise, end-user and region, highlighting the critical commercial assets and players.
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The global email encryption market report would provide approximately 65 market data tables, 72 figures and 232 pages.
Target Audience 2022
• Email encryption service providers
• Cybersecurity think tanks
• Commercial enterprises
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals
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