Application-level Encryption Market Current Trends/Opportunities/Challenges, and Forecast 2017 - 2025

In application-level encryption, the process of data encrypting is completed by the application that is used to modify or generate the data that is to be encrypted. This essentially means that, data is encrypted before it is written to the database. This unique approach to encryption renders the encryption process to be tailored to each user based on the information (such as entitlements or roles) that the application knows about its users. Application-level encryption can be organized to specific data protection mandates such as payment card industry data security standard (PCI DSS). Developers who add encryption to applications usually prefer to implement difficult cryptographic algorithms themselves. It is better to use pre-certified cryptographic implementations for the application-level encryption in order to avoid unwanted security flaws. Application-level encryption provides robust security, operational flexibility and high performance to the systems. With the flexibility to handle a wide spectrum of applications - from high-volume applications and fully automated to low-volume and tightly supervised applications, application encryption solutions deliver data protection and operational efficiency.

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Application-level encryption has the potential to simplify the encryption process used by a company. If an application encrypts the data that it modifies from a database then a secondary encryption tool is not required to be integrated into the system. The data is encrypted before it is written to the server. A hacker needs to have access to the database contents as well as the applications that were used to decrypt or encrypt the contents in order to decrypt sensitive data, these above mentioned factors are driving the market. However, application-level encryption means that applications used by a firm need to be modified to encrypt data themselves. This consumes a significant amount of time and other resources. Application-level encryption has a limiting effect on the performance of database, as the entire data on the database is encrypted by a multitude of applications it becomes difficult to search or index the data. This is projected to pose challenges to the application-level encryption market. Furthermore, increase in the demand for cloud-based encryption solutions is projected to be an opportunity for the application-level encryption market.

The application-level encryption market can be segmented on the basis of deployment type, end-use and region. Based on deployment type, the application-level encryption market can be classified into cloud and on premise. Major database providers such as Oracle and Microsoft offer application-level encryption options with better security features. The data is collected by the database as a service provider as it is exposed in the database server and encrypted at rest. Before it is sent to the cloud database, application-level encryption addresses this threat by encrypting the data. Cloud services make every effort to secure their systems. A fundamental encryption capability present in the cloud is where the storage containers are accordingly encrypted based on user preference during setup. In terms of end-use, the application-level encryption market can be divided into healthcare, retail, BFSI, telecom and IT and manufacturing. As healthcare organizations continue to dive deeper into digital operations, security has been an obvious concern, especially in the light of recent cyber-attacks and breaches.

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On the basis of region, the application-level encryption market can be categorized into North America, Europe, Asia Pacific, Middle East & Africa, and South America. The increasing number of small and medium-sized businesses in countries such as India, China and Japan are putting in efforts to secure their personal and business data so as to focus on their core operations, which in turn, is projected to boost the adoption of application-level encryption solutions.

Some of the major players in the application-level encryption market are Thales, Gemalto NV, Instaclustr, IBM Corporation, Intel Corporation, Symantec Corporation, NetApp, Hewlett Packard Enterprise Development LP, Sophos Ltd., Oracle, Microsoft Corporation, Trend Micro, and CipherCloud among others.

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