According to the network encryption industry analysis by ESOMAR-certified market research, the demand registered in the market will grow at a healthy CAGR of 7.5% from 2022-2032.
The report also forecasts that the market will surpass a valuation of ~US$ 4.0 Bn by the end of 2022. As per ESOMAR-certified market research, rapid technological advancements and introduction of artificial intelligence, machine learning, network security and cyber security have created prospects for network encryptions. These technologies have become essential in improving economic competitiveness, thereby propelling the market growth.
As more IoT products enter the market, new security and policies will likely be established to prevent cyber assaults and the theft of personal information. IoT products are sophisticated, hence it will be critical to manage the risks that come with them. On the back of these factors, the network encryption market is anticipated to grow at a significant rate.
• By solution, network encryption platforms segment is anticipated to account for the leading share 46.4% in the global demand for network encryption during the forecast period.
• By enterprise size, the adoption of network encryptions in small enterprises is anticipated to increase at a CAGR of 8.9% between 2022 & 2032.
• By industry, the adoption of network encryptions in healthcare is anticipated to increase at a CAGR of 11.7% between 2022 & 2032, while BFSI segment is currently dominating the market share.
• North America is expected to lead the market followed by Europe in 2021.
• South Asia & Pacific is anticipated to emerge as the fastest growing region between 2022 & 2032.
“With increasing cyber-attacks and data breaches and easy way to bypass security safeguards and gain access to sensitive personal information, the need for network encryption solutions is surging. Thus, growing focus on data security breaches is driving the demand of drive the growth of market.” says the research analyst.
Adoption of Network Encryption for Protection of Intellectual Property
The safety of consumers’ personal information is a primary motivator for deploying encryption. According to a study, around 60% of respondents are using encryption to protect customers’ personal information, 50% are protecting information against particular, identifiable risks, and 49% using it for protecting company’s intellectual property.
Consumer data encryption is one of the most basic needs for all of these standards, and it applies to both in-transit and at-rest data. While the company has complete control over encryption methods, technology, and vendors, non-compliance can result in hefty penalties, particularly in the event of data breaches. Hence, adoption of network encryption for protection of intellectual property driving the global market.
Blockchain to Become A Mainstream Technology for Encryption
Blockchain has shown to be an excellent platform for safe and decentralized information exchange during the last five years. To begin with, blockchain automates the data storage process, making data breaches caused by human error obsolete. As data is encrypted, decentralized, and with multiple nodes on the network, blockchain networks are close to impossible to hack.
Banks, governments, healthcare systems, and other large institutions dealing with enormous amounts of sensitive data are all experimenting with blockchain technology for cybersecurity. For most businesses, however, blockchain is difficult and expensive to execute.
Because the technology is still in its early stages, compatibility and scalability, as well as the ongoing challenges of encryption key management, remain important roadblocks to implementation. Hence, rapid developments in blockchain technology will contribute to the growth of network encryption in upcoming years.