Global Cloud Encryption Market - Segmented by End-user Industry (Retail, Government, and Energy & Power), and Region - Growth, Trends, and Forecast (2018 - 2023)
In 2017, the cloud encryption market was valued at USD 618.52 million and is expected to reach a value of USD 2178.02 million by 2023, registering a CAGR of 23.34%, during 2018-2023 (the forecast period).
The scope of the report is limited to software solutions that are offered by various players for data-in-transit, data-at-rest, and data-in-use.
A cloud not only offers an external storage to various end-user verticals, such as electricity utilities, retail, and government, among others, but also is scalable and an on-demand solution, which allows unlimited data access. Cloud computing can improve an enterprise’s computing and analytics capabilities, by allowing it to collate, segregate, process, and analyze great volumes of data. The proliferation of cloud adoption and virtualization, and stringent regulations to increase the adoption rate of cloud encryption solutions are some of the factors that are fueling the market growth, across the globe.
Energy Sector To Register The Fastest Growth
Most of the process control systems that are designed to manage critical infrastructure, such as electric grids, oil pipelines, and water utilities used in the energy sector, utilize specialized hardware and proprietary protocols. While their introduction has simplified the management of facilities, they have made process control systems vulnerable to cyber-attacks. Major incidents, such as the Shamoon malware attacks in November 2016 and January 2017 against Gulf state organizations, have made security imperative for the energy sector. With the increased adoption rate of IoT and automation and the industry’s value chains increasingly relying on complex and interconnected digital assets, along with the constant exchange of data to carry out any operation, the energy sector is exposed to the risk of cyber-attacks, mainly due to the dependence on connectivity.
In the upstream sensors, actuators, and process-control networks, well-site gateways, mobile computers, and back-office gateways are required for seismic acquisition, data processing, and interpretation, in order to determine sites for oil deposits. Thus, the control of equipment, like SCADA, DCS, and the data collected in the cloud at this stage are highly sensitive as well as vulnerable to cyber-attacks. The aforementioned factors have been buoyed by companies and governments, who focus on claiming the necessary measures of encryption to secure these systems and prevent catastrophic disasters.
North America To Hold The Largest Market Share
North America holds a major share of the global cloud encryption market; it is the biggest revenue generator in the market amongst all the regions in the world. Recent high-profile data breaches have resulted in an outrage on companies that provide cloud services, as the privacy of user data was compromised. For instance, the company, Apple, faced high public outrage when multiple iCloud accounts of high-profile individuals were compromised. This compelled Apple to tighten its cloud security and implement better encryption in its services. Similar breaches have forced companies to invest highly on encryption.
Regulations in the region have also buoyed the demand for security in cloud services, and are required to be adhered by all industry verticals. Increased integration of technology, in all the industries and among the mass, has a positive effect on the cloud encryption market. Cloud services are experiencing high adoption and the demand for IoT systems is on a rise. This rise is driving the demand for the cloud encryption systems; further, users are becoming aware of the threats involved and looking for better and more secure services. All these factors are driving the cloud encryption software market growth. North America is expected to maintain its dominance in the global cloud encryption market.
Increased Adoption Of BYOD Devices
With the increased adoption of BYOD system, companies are facing new challenges while handling the data across personnel, and the company-owned devices. The security threats from the usage of BYOD are high. Companies are in need for high-secure systems that can detect and prevent threats. It has become crucial for companies to encrypt and avoid any mal-usage of the data. At present, industries are seeking reliable encryption solutions for their data and networks. The cloud encryption market is experiencing a high surge in demand from institutions employing BYOD system. This trend is expected to grow as more industries realize the advantages of these systems and invest in data encryption and security. The cloud encryption market is expected to witness a high growth in the developing economies that are employing BYOD systems.
Key Developments in the market
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