Network Encryption Market 2023 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the network encryption market was 4.2 billion, and a CAGR of 8.9% is expected during the forecast period. Increasing concern for data security, integrity, and confidentiality is driving the growth of the market significantly. Information security is one of the major concerns for an organization. Data security has become a primary concern for any organization worldwide.

The growth of network encryption is primarily driven by increased cyber security concerns, regulatory requirements, the expansion of cloud services, the proliferation of IoT devices, and the rising volume of sensitive data transmitted over networks. Advancements in encryption technologies and a greater awareness of privacy issues have contributed to its continual growth. The increasing number of multinational companies and the increasing number of small organizations worldwide are driving the growth of the market significantly.

Impact of Covid-19

COVID-19 significantly impacted the network encryption market. With remote work becoming the norm, there was a surge in data transmission across the networks. This increased need for secure communication channels is leading to a heightened demand for network encryption solutions to safeguard sensitive information. The pandemic accelerated digital transformation initiatives, prompting organizations to invest more in securing their network infrastructure. Thereby boosting the adoption of encryption technologies. During the pandemic, people's priorities shifted towards essential things. But after the pandemic got over and the remote work culture started, a large amount of data transmission started to take place, so the need for data encryption was there. Increasing awareness worldwide about the data encryption and decryption started.

Growth Drivers

There is increasing awareness about the importance of cryptography in any organization, as data security has become a major concern worldwide. With increasing cybersecurity threats and data breaches, there is a heightened focus on securing sensitive data during transmission, boosting the demand for robust encryption solutions. For the success of any organization, data integrity and authentication are of the utmost concern. The remote work culture has increased the demand for data encryption. Increasing awareness among businesses and individuals about data security is encouraging the adoption of encryption technologies to protect sensitive information from unauthorized access.

The widespread adoption of cloud services demands secure data transmission, leading to a surge in the deployment of network encryption solutions. The proliferation of IoT devices necessitates secure communication channels, prompting the need for encryption technologies to protect data transmission across interconnected devices. Stricter data protection regulations globally are compelling organizations to implement encryption to ensure compliance, driving market growth. Rise in adoption of network encryption in information security. Increasing awareness among people and organizations about data theft is inspiring them to secure data integrity and confidentiality.

Segmentation

Deployment Type

·         Cloud

·         On-Premise

By Components

·         Hardware

·         Solutions

·         Services

By Organization Size

·         Small and Medium Sized

·         Large Sized Enterprise

End-User Industry

·         Telecom and IT

·         BFSI

·         Government

·         Media

·         Entertainment

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Network Encryption End-User Market

On the basis of end-users in network encryption, the market is segmented into telecom and information technology, BFSI, government, media, and entertainment. Data is a raw fact. The BFSI segment dominated the market and is expected to dominate during the forecast period. Due to the high rate of network automation and the largest investment in encryption technologies, banking, finance, and investment are some of the biggest investors and adopters in the global network encryption market.

Increased internet and mobile banking usage, a high rate of adoption of private networks, and growing adoption of cloud and digital technologies are driving the growth in the market. Telecom and IT are another sector where data integrity is of major concern. Data confidentiality and integrity are also very important in the media and entertainment.

Network Encryption by Organization Size Market

On the basis of type, the network encryption market is segmented into small, medium, and large enterprises. Large-size enterprise is the dominant segment during the forecast period. In a large organization, data security is a major concern. The increasing number of multinational companies is driving the growth of the network encryption market significantly.

Network Encryption Market by Component type Segment

On the basis of the components, the network encryption market is segmented into hardware, software, and solutions. The solutions and services segment dominate the market and is expected to dominate during the forecast period. Increasing awareness among people about data security is driving the growth of the market. Data integrity and confidentiality are the key factors in the success of any organization.

Regional Outlook

On the basis of regions, the network encryption market is segmented into 5 parts: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. The network encryption market has seen significant growth due to increased cyber threats worldwide. North America is the leading segment due to the presence of key market players, technological advancements, and increasing awareness among people about the need for data security. Cryptography has become an essential part of any organization. Data encryption means encrypting the data with the help of a key. North America, especially the people in the United States, are well aware of data integrity, data confidentiality, and data authentication.

Due to expanding information technology infrastructure, countries like India and China are showing growth in this market. Europe follows suit, with a focus on compliance. Emerging markets like Latin America, the Middle East, and Africa are also witnessing a surge in demand due to rising digitalization efforts and awareness about cyber security. Rising awareness and investment in cyber security infrastructure are driving the growth of the market significantly. The presence of Nokia in Finland makes European countries a big market for data encryption. Asia Pacific is the largest growing market during the forecast period due to the presence of large organizations. Growing population, urbanization, and industrialization are driving the growth of the market worldwide.

Key Players

·         Atos

·         Cisco System

·         Nokia

·         Juniper Networks INC

·         Rohde and Schwarz

·         Thales

·         Huawei Technologies co. ltd.

·         Raytheon technologies corporation

·         Viasat INC.

·         atimedia GmbH Saarbucken

·         F5 Networks

·         Colt technology

·         Other Players