Global encryption software market 2010-2014
The global encryption software market is expected to reach USD 8.74 billion by 2025 at a compound annual growth rate (CAGR) of 16.8%. Increasing concern over data breaches and the adoption of modern technologies are driving the market for encryption software. Moreover, increased demand for data security has prompted tech companies to adopt complex encryption algorithms to protect sensitive data. But this growth is not without its setbacks. To assess the overall market potential, it is necessary to consider several factors.
The encryption software market is largely driven by two types of solutions:
full disc and file level. Full disc encryption protects data stored on a disc and its accompanying software from unauthorized access. File level encryption has shifted the focus from disc-level encryption to file-level encryption, which offers customized solutions for data security at the file level. This type of encryption offers enhanced security to individual files while requiring a lower investment.
During the 1990s, major U.S. software companies led the growth of the Internet. Companies such as Microsoft, Oracle, Sun Microsystems, and others pioneered the global encryption software market. Meanwhile, other key IT companies were leading the microprocessor, router, and service provider markets. However, export controls posed a challenge to U.S. software companies, which were forced to sell weak encryption products to a global audience. Furthermore, strong encryption products developed outside the U.S. market were not subject to export control rules.
Despite these challenges, the global encryption software market is likely to continue to grow at a healthy pace. China, for instance, is an emerging market. While the United States and Europe are both growing encryption markets, India and Russia are developing their own versions of the technology and implementing policies in these countries. In addition, the government of India supports weak encryption and promotes the use of domestic encryption products. If such policies are adopted, this will only encourage the adoption of domestic encryption products in China and India.
However, the Chinese government is pushing to develop its own cryptosystems.
This new policy raises the cost of encryption for both consumers and companies. China is mandating encryption systems to be used only within the country, so it has a greater chance of getting a large share of the global encryption market. This strategy may also create a new export market based on encryption technology transfer. Additionally, Chinese products may be more cost-effective to ship to the rest of the world.
The global backup software market is expected to mature further in the next five years, owing to its increasing popularity amongst consumers. Cloud computing technology is expected to find extensive application in the industry and create more value for customers. The importance of data backup is increasing among mobile devices and the users tend to attach greater importance to backup software. However, the growth of backup software has largely been concentrated in large enterprises. These companies are expected to spend over HK$18.0 billion on backup software by 2019.