Cloud Encryption Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 3.94 Billion |
| Market Size (2029) | USD 11.74 Billion |
| CAGR (2024 - 2029) | 24.38 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Cloud Encryption Market Analysis
The Cloud Encryption Market size is estimated at USD 3.94 billion in 2024, and is expected to reach USD 11.74 billion by 2029, growing at a CAGR of 24.38% during the forecast period (2024-2029).
- Cloud computing can improve an enterprise's computing and analytics capabilities by enabling it to collate, segregate, process, and analyze significant volumes of data.
- The proliferation of cloud adoption and virtualization and the introduction of stringent regulations to increase the adoption rate of cloud encryption solutions fuel global market growth.
- In the last decade, data breaches increased dramatically, resulting in the need for cloud encryption. Other dynamics, like cyberattacks and malicious software, further drive the growth of the cloud encryption market.
- Several factors can restrain the adoption of cloud encryption, including the cost of premium cloud services. However, it is important to note that cloud encryption can also provide significant benefits, such as increased security and compliance with regulatory requirements.
- The COVID-19 pandemic led to a significant increase in the adoption of cloud services due to remote work and increased digitization of businesses. As a result, the demand for cloud encryption also increased as companies looked to secure their sensitive data stored in the cloud. Post-pandemic also, the market is growing rapidly with the increased cloud adoption in various organizations.
Cloud Encryption Market Trends
Increase in Cloud Adoption and Growth of IoT is Expected to Drive the Market Growth
- The increased integration of technology across all major industries has positively impacted the cloud encryption market. Cloud services are experiencing high adoption, and the demand for IoT systems is rising. This rise is driving the demand for cloud encryption systems.
- The increase in IoT-connected devices is expected to drive market growth. By 2023, there will be approximately 30 billion network-connected devices and connections, up from 18.4 billion in 2018, as Cisco's Annual Internet Report predicted. By 2023, IoT devices are projected to make up 50% (14.7 billion) of all networked devices, up from 33% (6.1 billion) in 2018.
- The usage of cloud storage has grown as the cost of purchasing, administering, and maintaining in-house storage equipment has decreased significantly. Because of the reliance on technology, cyber-attacks have increased exponentially, and businesses have begun to invest in encryption technologies.
- The growing trend of adopting connected devices in various sectors positively influences the market studied. According to Ericsson, the number of massive IoT connections is expected to have doubled, reaching nearly 200 million. According to Ericsson, by the end of 2027, 40% of cellular IoT connections will likely be broadband IoT, with 4G connecting most of them.
- Additionally, users are becoming aware of the threats and looking for better, more secure services. All these factors are driving the cloud encryption software market growth. The increasing adoption of SaaS in developed countries by industries such as defense and healthcare is a crucial factor driving the growth of the cloud encryption market.
- Moreover, the increasing complexity of IT systems and the rising awareness and use of cloud encryption security by the telecom, banking, and IT industries, are other factors expected to boost the growth of the cloud encryption market.
North America is Expected to Hold Significant Market Share
- The United States and Canada have developed economies that enable them to invest heavily in R&D. Rising digitization throughout the industrial emphasis areas, steady technological advancements, and rising penetration of smart connected devices have all contributed to the growth of the North American cloud encryption market. The increased usage of connected devices and associated network infrastructure, as well as the increased collaboration of network, hardware, and software providers, are the primary drivers that assist in expanding the IoT market in the North American region.
- Rapid 5G connectivity facilitates the country's agile operations. The technology is anticipated to render networked logistics, automated warehouses, automated assembly, packing, and product handling easier and make the usage of autonomous carts possible.
- The government in this region is also launching public awareness campaigns to educate individuals and organizations about the importance of encryption and the risks associated with not using encryption. This can increase demand for encryption solutions and encourage their adoption.
- The Federal Information Security Modernization Act (FISMA) is an important law affecting cloud encryption in the United States. FISMA requires federal agencies to implement security controls to protect their information and information systems, including encrypting sensitive data in the cloud.
- Overall, cloud encryption is an important component of cloud security in the United States and is subjected to various laws, regulations, and industrial standards. Organizations that store sensitive data in the cloud drive market growth.
Cloud Encryption Industry Overview
The Cloud Encryption Market is highly fragmented, with the presence of major players like IBM Corporation, Trend Micro Inc., Dell Technologies Inc., Broadcom Inc. (Symantec Corporation), and Google LLC. Players in the market are adopting strategies such as partnerships, innovations, mergers, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In October 2022, Vaultree announced the availability of its Data-in-Use Encryption for Google's AlloyDB, which is available for a preview trial. The service, a launch partner for Google's AlloyDB, combines the global functioning Encryption-in-Use solution powered by Vaultree with Google's AlloyDB for PostgreSQL. Users may now test Vaultree's homomorphic and searchable cloud encryption technology homomorphic and searchable encryption technology on the cloud, indicating an advancement in encryption standards that will allow next-generation encryption and data security.
In June 2022, Cisco launched a new Talos Intel On-Demand service, which provides tailored research on the threat landscape specific to each organization. Cisco introduced Cisco Secure Cloud Analytics changes to assist incident detection and response, including instantly elevating alarms into SecureX and mapping those warnings to MITRE ATT&CK. This came on the heels of the public release of SecureX device insights to collect, correlate, and normalize data about the devices in their environment and the Kenna and Secure Endpoint integrations to prioritize vulnerabilities better. Cisco also announced the Secure Firewall 3100 Series, intended for hybrid usage, and features a new encrypted visibility engine that detects hidden threats using artificial intelligence and machine learning.
Cloud Encryption Market Leaders
IBM Corporation
Trend Micro Inc.
Dell Technologies Inc.
Broadcom Inc. (Symantec Corporation)
Cisco Systems Inc.
*Disclaimer: Major Players sorted in no particular order
Cloud Encryption Market News
- December 2022: Equinix collaborated with cloud networking specialist Aviatrix on a collaborative solution to assist organizations in managing multi-cloud networks. Aviatrix Edge also supported cloud application deployment from public cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform. Users gained greater control and visibility by establishing a layer of transit hubs with automated deployment.
- December 2022: Apple strengthened cloud encryption to protect data effectively. Apple is introducing three new tools to assist consumers in protecting their data in the cloud. The additional security features would be implemented throughout the following year.
Cloud Encryption Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers/Consumers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increase in Cloud Adoption and Growth of IoT
5.1.2 Increasing Threats to Cloud Environments
5.1.3 Regulations to Increase the Adoption of Cloud Encryption Solutions
5.2 Market Restraints
5.2.1 Huge Investment Required for the Adoption of the Premium Cloud Service
6. MARKET SEGMENTATION
6.1 By End User Industry
6.1.1 Retail
6.1.2 Government
6.1.3 Energy and Power
6.2 By Service Model
6.2.1 Infrastructure-as-a-Service
6.2.2 Platform-as-a-Service
6.2.3 Software-as-a-Service
6.3 By Size of Enterprise
6.3.1 Large Enterprise
6.3.2 Small and Medium Size Enterprises
6.4 By Geography
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.2 Europe
6.4.2.1 United Kingdom
6.4.2.2 Germany
6.4.2.3 France
6.4.2.4 Rest of Europe
6.4.3 Asia-Pacific
6.4.3.1 China
6.4.3.2 Australia
6.4.3.3 Singapore
6.4.3.4 Rest of Asia-Pacific
6.4.4 Latin America
6.4.4.1 Mexico
6.4.4.2 Brazil
6.4.4.3 Rest of Latin America
6.4.5 Middle East and Africa
6.4.5.1 United Arab Emirates
6.4.5.2 Saudi Arabia
6.4.5.3 Rest of Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.2 Trend Micro Inc.
7.1.3 Dell Technologies Inc.
7.1.4 Broadcom Inc. (Symantec Corporation)
7.1.5 Google LLC
7.1.6 Cisco Systems Inc.
7.1.7 Sophos Group PLC
7.1.8 Hewlett Packard Enterprise Company
7.1.9 Skyhigh Networks Inc. (McAfee Inc.)
7.1.10 CipherCloud
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Cloud Encryption Industry Segmentation
Cloud encryption is a service offered by cloud storage providers whereby data or text is transformed using encryption algorithms and placed in a storage cloud. Encryption is used when sensitive data, such as account details or other information, is stored on cloud storage by applying encryption to the data so that only authorized users can access the data. The data cannot be accessed if the data is lost or stolen without the encryption key. Companies increasingly using the cloud to store sensitive data can use encryption to ensure that only authorized users have access.
The Cloud Encryption Market is segmented by End-user Industry (Retail, Government, Energy, and Power), by Service Model (Infrastructure-as-a-Service, Platform-as-a-Service, Software-as-a-Service), by Size of Enterprise (Large Enterprises, Small and Medium size Enterprises), by Geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Rest of Europe), Asia-Pacific(China, Australia, Singapore, Rest of Asia-Pacific), Latin America (Mexico, Brazil, Rest of Latin America), Middle East and Africa (United Arab Emirates, Saudi Arabia, Rest of the Middle East and Africa)).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By End User Industry | |
| Retail | |
| Government | |
| Energy and Power |
| By Service Model | |
| Infrastructure-as-a-Service | |
| Platform-as-a-Service | |
| Software-as-a-Service |
| By Size of Enterprise | |
| Large Enterprise | |
| Small and Medium Size Enterprises |
| By Geography | ||||||
| ||||||
| ||||||
| ||||||
| ||||||
|
Cloud Encryption Market Research FAQs
How big is the Cloud Encryption Market?
The Cloud Encryption Market size is expected to reach USD 3.94 billion in 2024 and grow at a CAGR of 24.38% to reach USD 11.74 billion by 2029.
What is the current Cloud Encryption Market size?
In 2024, the Cloud Encryption Market size is expected to reach USD 3.94 billion.
Who are the key players in Cloud Encryption Market?
IBM Corporation, Trend Micro Inc., Dell Technologies Inc., Broadcom Inc. (Symantec Corporation) and Cisco Systems Inc. are the major companies operating in the Cloud Encryption Market.
Which is the fastest growing region in Cloud Encryption Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Cloud Encryption Market?
In 2024, the North America accounts for the largest market share in Cloud Encryption Market.
What years does this Cloud Encryption Market cover, and what was the market size in 2023?
In 2023, the Cloud Encryption Market size was estimated at USD 3.17 billion. The report covers the Cloud Encryption Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cloud Encryption Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Cloud Encryption Industry Report
Statistics for the 2023 Cloud Encryption market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cloud Encryption analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
