Currently, the state of cyber-crime doesn’t look good. Crimes have increased across all regions of the world; be it the developed nations like USA, UK and Canada or the emerging locations in Nigeria, Brazil, Russia, China and Vietnam. Studies conducted in 2015 suggest that data worth USD 300 million has been stolen directly from banks which is considered the most secure place on earth. This creates an even more sense of urgency thereby requiring the need for a proper security software.
The industry defines the overall cyber security threats under the following categories: Point-of-Sale (POS) Intrusion, Web Application Attacks, Insider Misuse, Physical Theft and Loss, Errors, Crimeware, Payment Card Skimmers, Cyber-Espionage and Distributed-Denial-of-Service (DDoS). Each of these threats could be restricted or controlled by proper security means. Encryption software is one among them.
U.S. President Barack Obama in one of his interviews while visiting the Silicon Valley in February 2015 said that he is a strong believer of strong encryption. Earlier, cyber-security was used to protect critical documents and communications but the need of the hour has been encrypting every piece of corporate and application data. High density security threats like data breaches and malware lurk around every nuke and corner of the internet space. The attacks on multinational corporations like Sony has created further attention to the cyber-security development. This massive cyber-security awareness has ignited the growth of the encryption market.
However, it’s not "hunky-dory" for the encryption market. Customers are still very skeptical in adopting any kind of encryption technology. They believe that it is not only a costly affair but also decreases the IT system performance. This is ideally not the case in this era of modern technology. Use of encryption technology do not reduce system speed, rather provides better computing.
Following are the reasons for the growth of Encryption Software market globally: 1. High increase in rate of cyber-crime across developed and emerging regions 2. Need for data protection by adopting encryption software 3. Increased mobility and telecommuting among employees 4. Evolution of open source encryption programming The North American market is expected to grow the fastest and emerging countries in Middle-east & Africa the slowest. USA has seen one among the largest number cyber-attacks, data theft and hacking in the recent past. This has helped the growth of the encryption software market in USA.
In terms of market share among size of companies, Enterprise companies are the largest users for this security technology. Given the volume and sensitiveness to data, this set of companies often remain the primary target for cyber-miscreants. Small business like e-commerce companies have started to opt encryption software a security measure.
But the cost factor has always been an area of concern for most of the customers. The price of encryption software is generally high, thereby making customers dicey on this. However, with the emergence of cloud based encryption software, the acceptance has increased. We believe that rate of growth for cloud deployment model would surpass that of on-premise software creating a larger market for the security software.
The most prominent companies in this area of expertise include Check Point Software Technologies, McAfee, Microsoft, Safenet, Sophos and Symantec to name a few. Other emerging players include Becrypt, CE Infosys, Entrust Tech, Eset, Jetico, Winmagic, etc.