The demand for cloud encryption is estimated to increase at a CAGR of 30.9% from 2022-2032. The market valuation is projected to increase by US$ 2.4 Bn by 2022 & US$ 34.8 Bn by 2032.
This is according to Future Markets Insight (FMI), which says organisations are investing in the modernisation of data storage strategy with the adoption of cloud technologies for digital transformation. This is expected to drive growth in the cloud encryption market.
The growing need to store data in public and private cloud-based storage is spurring demand in the market. Also, the pandemic forced organisations to adopt remote work, which increased the use of digital technologies and online data sharing. This has resulted in an exponential rise in cyber breaches like ransomware, malware attacks, and phishing.
As a result, enterprises are adopting cloud encryption to safeguard their sensitive data from data breaches and cyberattacks. Cloud encryption encodes the data by converting the plain text data into cipher text, which is unreadable by malicious users, thereby preventing data breaches. It provides enterprises with automated security, reduced complexity, and risk reduction by offering built-in security controls and continuous protection.
Increasing data volumes have driven the adoption of big data analytics across companies, which is capable of processing and analyzing results of big data and providing descriptive, predictive, and prescriptive results. However, one of the biggest issues is how to gain perfect security for big data.
Cloud computing and cloud data stores have aided the growth of big data. Businesses can obtain superior insights from their enormous amount of structured and unstructured data by adopting Big Data analytics in the cloud. Companies handle large amounts of data and leverage the cloud to perform analytics and keep it confidential.
With an increase in data saved in the cloud storage server, hackers try to access confidential data using organisational cloud servers with the help of different decoding techniques. Hence, the use of advanced cloud encryption software by organisations has increased for achieving semantic security.
“As cybersecurity and data security are equally important, enterprises should focus on high capital investment in cloud security by adopting cloud encryption. Encryption is recognised as a top tool required to meet new privacy requirements and should be widely adopted”, said an FMI analyst.
By component, the solution segment is anticipated to expand at a 32% CAGR through 2032.
By service model, the infrastructure as a service (IaaS) segment is estimated to grow by 17.8X during the forecast period.
Based on enterprise size, the SME segment is estimated to grow by 16.8X during the assessment period.
In terms of industry, sales in the IT & telecom segment are anticipated to increase at a CAGR of 36.5% between 2022 & 2032.
The U.S. is projected to hold 71.5% of the North American cloud encryption market share by 2032.
Indonesia will emerge as a lucrative pocket, with sales growing at a 43.2% CAGR through 2032.