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Cloud Encryption Market - Powered by the U.S., North America to Display Dominant Demand
The leading players, namely CipherCloud Inc., Hytrust Inc., Gemalto NV, IBM Corporation, Netskope Inc., Secomba GmbH, Skyhigh Networks, Sophos Group Plc., Symantec Corporation, and Thales e-Security Inc., are engaged in technological innovations that will help them gain competitive advantage in a bid to strengthen their foothold. For example, in September 2017, SonicWall Inc. released a range of advanced cloud security products such as SonicWall Cloud Analytics application for automated breach detection and deep security data analysis.
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Savvy players are also vying to expand into untapped markets such as emerging economies of Asia Pacific that are increasingly adopting cloud solutions. In particular, healthcare and BFSI sectors display substantial demand for cloud encryption solutions with growing complexity of IT systems.
As per estimates of the TMR report, the global cloud encryption market will be valued at US$2,912.3 mn by the end of 2025. The market is projected to expand at an outstanding 21.5% CAGR over the forecast period from 2017 to 2025. On the basis of service model, infrastructure as a service (IaaS) segment is expected to continue dominance on the back of its various benefits over other service model components. Telecom and IT segment among the key industry verticals is likely to display the leading CAGR over the forecast period. Geography-wise, North America stood as the leading revenue generating region in 2016.
At the forefront of driving the global cloud encryption market is the dire need to encrypt data before it is transferred to the cloud for storage. Growing demand for security capabilities offered by cloud encryption solutions is leading to the increased penetration and growth of cloud encryption market globally.
Further, the increasing adoption of advanced data storage technology and data storage architecture by small and medium enterprises (SMEs) is leading to the increased penetration of cloud encryption solutions. The trend is noticeable among SMEs in countries such as China, India, and Japan due to the rising adoption of software as a service (SaaS) distribution model. SMEs are increasingly switching from in-house data center to cloud for various applications that helps saves running and managing cost of their data centers. The use of cloud also helps accelerate the application delivery process.
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Early adoption of Bring-your-own-device (BYOD) Practices in Developed Regions Stokes Demand
The increasing adoption of software as a service (SaaS) and infrastructure as a service (IaaS) models predominantly in developed economies is positively influencing cloud encryption market. For instance, in North America, agencies that are involved in providing cloud based services and solutions are entering into collaborations with each other and are focused to offer various advanced technologies to consumers. Further, the early adoption of bring-your-own-device (BYOD) practices and rapid advancements in cloud technology in order to provide high security to private and confidential data is stoking the demand for cloud encryption solutions.
On the other hand, in developing regions, rising complexities of IT systems and capability to deploy new applications are anticipated to boost the cloud encryption market. For instance, China and India contribute significant revenue to the Asia Pacific cloud encryption market
About TMR
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.
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