Cloud Encryption Market Size, Share, Growth, and Industry Analysis, By Type (Infrastructure-as-a-Service (IaaS), Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS)), By Application (Banking, Financial Services, and Insurance (BFSI), Healthcare, Telecom and IT, Government and Public Utilities, Aerospace and Defense, Retail, Others) Regional Forecast By 2031

Updated On: 22 April 2024

Cloud Encryption Market Report Overview

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The global cloud encryption market size was USD 631 million in 2021. As per our research, the market is projected to touch USD 33076.3 million by 2031, exhibiting a CAGR of 48.6% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the Global Cloud Encryption Market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Currently, the cloud encryption market makes up about 4.5 percent of the overall cloud security business. Cybercriminals are using sophisticated attacking tools to launch many assaults that damage businesses as a result of the development of technology and the growing popularity of cloud computing. To reduce privacy and security issues associated with the cloud, organizations are concentrating on cloud data encryption. To safeguard sensitive data stored in the cloud from unauthorized users and stop data breaches, cloud cryptography employs encryption techniques like symmetric encryption and asymmetric encryption. Enterprises may safeguard cloud data, shielding it from hackers and users with nefarious intent, by using strong encryption and retaining reliable decryption keys.

COVID-19 Impact: Imposed Restrictions in the Economy Resulted in Decline in the Market

The COVID-19 outbreak caused temporary business closures as well as supply chain and manufacturing disruptions, which in turn reduced the development of telecom infrastructure and had a negative effect on the sales and marketing efforts of rugged phone companies competing in the market. The effects were severe, particularly for startups and small- to medium-sized businesses operating in this industry. Companies did, however, make a lot of restructuring efforts to address the supply chain difficulties and improve collaboration with suppliers and partners to lessen the negative market impact.

LATEST TRENDS

"Growth of the market in recent years"

In order to encrypt data before it is sent to the cloud for storage, cloud storage companies offer cloud encryption services. Applications for end-to-end encryption of data uploaded to the cloud range from encrypted connections to limited encryption solely of material that is known to be sensitive (such account passwords). According to these approaches, cloud storage providers encrypt data when it is received and give the customers access to the encryption keys so that the data can be securely decrypted as needed. Earlier, organisations had to manage and maintain physical, on-premises components, which raised the demand for infrastructure purchases to store more data and resulted in costly installation and maintenance expenses.

Cloud Encryption Market Segmentation

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• By Type

Based on type the global cloud encryption market is classified as Infrastructure-as-a-Service (IaaS), Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS).

• By Application

Based on application the global cloud encryption market is classified as banking, financial services, and insurance (BFSI), healthcare, telecom and it, government and public utilities, aerospace and defense, retail, others.

DRIVING FACTORS

"The Utilization as a Catalyst to Boost the Market Growth"

Businesses are embracing digital transformation to increase operational efficiency. As a result of the pandemic, which served as a catalyst and elevated the firms' digital transformation journey, adopting the cloud has become a top priority for businesses looking to boost sustainability, growth, and productivity.

As there has been a huge decrease in the cost of purchasing, administering, and maintaining internal storage infrastructure, cloud storage adoption has surged. Cyberattacks have increased dramatically as a result of our heavy reliance on technology, and businesses have begun to invest in encryption technologies. End-to-end encryption and data privacy are provided by cloud encryption systems, which encrypt the communication between the cloud and the end point.

"Extensive Application in Laundering Process to Multiply the Production and Market Growth"

One of the most crucial challenges in cloud computing is cloud storage security. Businesses that use cloud computing for a variety of business functions face difficulties protecting these systems from cyberattacks. These businesses encrypt data before storing it in the cloud to secure their processes using industry-standard encryption techniques. Before performing the necessary calculations, the encrypted data must be decrypted at every operation by presenting the server with the private keys. The privacy of the data kept in cloud storage is impacted by this.

RESTRAINING FACTORS

"Several Challenges Associated with the Local Irritation to Restrain the Market"

By executing operations on encrypted data without first decrypting it, homomorphic encryption is a novel security concept that enables data processing to be outsourced to a third party without risking the security of the data. Without the proper decryption key, it is impossible to retrieve the original data. It is distinct from other methods of encryption because it makes use of an algebraic system to enable users to do a variety of computations (or operations) on the encrypted data sets. It enables taking advantage of cloud computing features while maintaining the security of sensitive data.

Cloud Encryption Market Regional Insights

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"North American Region to Dominate the Market with Extensive Utilization and Multiplying Manufacturers"

By 2033, the US market share for cloud encryption is anticipated to be close to 71.5% of all of North America. Growth in the market will be fueled by increasing use of cloud-based solutions in the USA as they transition from on-premise solutions to cloud-based platforms. An amazing 43.2% CAGR is predicted for sales growth in Indonesia between 2023 and 2033. With a clear strategy to attain scalability, security, and agile frameworks across the nation, Indonesia is implementing digital technology to automate and simplify enterprises. Additionally, cyberattacks like ransomware, DDoS, and data breaches are rising in the USA. Sales of cloud encryption methods will therefore increase as a result of modifications and major investments in cloud security.

KEY INDUSTRY PLAYERS

"Financial Players to Contribute Towards Expansion of Market"

This market is extremely competitive and consists of various global and regional players. Major players are involved in strategizing various plans such as mergers and acquisitions, partnerships, introduction of new and enhanced products, along with joint ventures. The report is extensive research of a list of market players who contribute towards the expansion of the market. The information is a collusion of latest technological developments, trends, production lines mergers and acquisitions, market study and others. Other factors such as regional wise analysis and segment wise analysis are also considered to understand the market share, product growth, revenue growth and others during the forecasted period.

List of Market Players Profiled

• Ciphercloud (US)
• Gemalto (Netherland)
• Hytrust (US)
• IBM (US)
• Netskope (US)
• Secomba (Germany)
• Skyhigh Networks (US)
• Sophos (UK)
• Symantec (US)
• Thales E-Security (France)
• Trend Micro (Japan)
• Vaultive (US)
• TWD Industries AG (Switzerland)
• Parablu (India)

REPORT COVERAGE

The SWOT analysis and information on future developments are covered in the study. The research report includes a study of several factors that promote market growth. This section also covers the range of numerous market categories and applications that could potentially affect the market in the future. The specifics are based on current trends and historical turning points. The state of the market's components and its potential growth areas over the following years. The paper discusses market segmentation information, including subjective and quantitative research, as well as the impact of financial and strategy opinions. Additionally, the research disseminates data on national and regional assessments that take into account the dominant forces of supply and demand that are influencing market growth. The competitive environment, including market shares of significant competitors, is detailed in the report along with fresh research methodology and player strategies for the anticipated time.