GITNUX MARKETDATA REPORT 2024

Cloud Encryption Industry Statistics

The cloud encryption industry is expected to witness significant growth in the coming years, driven by increasing concerns regarding data security and privacy in the digital landscape.

Highlights: Cloud Encryption Industry Statistics

  • Global cloud encryption market size was at USD 1.2 billion in 2020.
  • The market is expected to expand at a compound annual growth rate (CAGR) of 21.5% from 2021 to 2028.
  • Data protection regulations, such as GDPR, have been major growth drivers for the cloud encryption industry.
  • North America accounted for the majority of the market share in cloud encryption.
  • The cloud encryption software market in Asia-Pacific is projected to grow at the highest CAGR during the forecast period.
  • The encryption software market including cloud and on-premise solutions, is expected to reach $16.5 billion by 2024.
  • The healthcare sector is expected to exhibit high growth in cloud encryption demand due to the increasing adaption of cloud services.
  • The banking, financial services, and insurance (BFSI) segment accounted for a major share of the cloud encryption market in 2020.
  • Companies that offer Infrastructure-as-a-Service (IaaS) are expected to account for the largest market share during 2020-2025.
  • Infrastructure as a Service (IaaS) model is expected to grow at the highest CAGR during the forecast period.
  • Around 22% of organizations are concerned about data leakage in the cloud.
  • Over 70% of enterprises cite security as the top factor shaping their cloud strategies, underlining the importance of cloud encryption.
  • The Encryption as a Service (EaaS) segment held a sizeable share in 2020 due to its high scalability and cost-effectiveness.
  • By 2024, more than 90% of enterprises will have adopted some form of cloud encryption to protect their data.
  • Over 50% of IT leaders believe that cloud encryption is necessary for their organizations' security.
  • By 2025, 85% of enterprises will store sensitive data in the cloud, signifying the need for more widespread adoption of cloud encryption.

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The Latest Cloud Encryption Industry Statistics Explained

Global cloud encryption market size was at USD 1.2 billion in 2020.

The statistic “Global cloud encryption market size was at USD 1.2 billion in 2020” indicates the total value of the market for cloud encryption solutions worldwide in the year 2020. This figure represents the total revenue generated by the sales of encryption products and services specifically designed for securing data stored and transmitted in cloud computing environments. The size of the market suggests a growing awareness and investment in data security measures in response to increasing cyber threats and regulatory requirements, with organizations across various industries seeking to protect sensitive information stored in the cloud.

The market is expected to expand at a compound annual growth rate (CAGR) of 21.5% from 2021 to 2028.

The statistic “The market is expected to expand at a compound annual growth rate (CAGR) of 21.5% from 2021 to 2028” indicates that the market is forecasted to grow consistently over the period of 2021 to 2028 at an average annual rate of 21.5%. The compound annual growth rate is a measure used to understand the year-over-year growth of an investment or market, taking into account the effect of compounding. In this context, a CAGR of 21.5% implies a strong and rapid expansion of the market, with the potential for significant increases in size and value over the specified timeframe. This forecast suggests a positive outlook for the market, predicting substantial growth opportunities and attracting potential investors and stakeholders.

Data protection regulations, such as GDPR, have been major growth drivers for the cloud encryption industry.

The statistic indicates that data protection regulations, notably the General Data Protection Regulation (GDPR), have played a significant role in boosting the growth of the cloud encryption industry. This can be attributed to the requirements imposed by these regulations on organizations to protect the privacy and security of personal data they handle. As a result, businesses are increasingly turning to cloud encryption solutions to ensure compliance with these regulations and safeguard sensitive information stored in the cloud. The demand for secure cloud encryption services has thus surged in response to the evolving regulatory landscape, presenting a substantial growth opportunity for companies operating in this sector.

North America accounted for the majority of the market share in cloud encryption.

The statistic ‘North America accounted for the majority of the market share in cloud encryption’ indicates that the region of North America had the largest portion of the market related to encryption services for cloud computing. This suggests that companies and organizations in North America were the primary consumers and providers of cloud encryption solutions compared to other regions. This information provides insights into the dominance of North American companies in the cloud encryption market, potentially reflecting the region’s advanced technological infrastructure, higher adoption rates of cloud services, or a concentration of key industry players in the field of data security within North America.

The cloud encryption software market in Asia-Pacific is projected to grow at the highest CAGR during the forecast period.

This statistic indicates that the market for cloud encryption software in the Asia-Pacific region is expected to experience the highest Compound Annual Growth Rate (CAGR) compared to other regions over the forecast period. This suggests that there is a growing demand for cloud encryption solutions in the Asia-Pacific market, likely driven by factors such as increasing adoption of cloud services, rising awareness of data security risks, and regulatory compliance requirements. Companies operating in this market may benefit from this projected growth by focusing on expanding their offerings and market presence in the Asia-Pacific region to capitalize on the growing opportunities in cloud encryption software.

The encryption software market including cloud and on-premise solutions, is expected to reach $16.5 billion by 2024.

The statistic regarding the encryption software market reaching $16.5 billion by 2024 suggests a significant growth trajectory in the industry. This estimate encompasses both cloud-based and on-premise encryption solutions, highlighting the increasing demand for data protection and security measures across various sectors. The rising adoption of encryption technologies, driven by the need to safeguard sensitive information from cyber threats and data breaches, is fueling the market expansion. With data privacy regulations becoming more stringent and businesses prioritizing cybersecurity, the projected market size reflects the growing importance of encryption software in ensuring secure digital communication and safeguarding critical data assets in the evolving technological landscape.

The healthcare sector is expected to exhibit high growth in cloud encryption demand due to the increasing adaption of cloud services.

This statistic suggests that the healthcare sector is projected to experience substantial growth in the demand for cloud encryption services. This anticipated increase is primarily driven by the sector’s growing reliance on cloud-based services to store and manage sensitive patient data securely. As healthcare organizations increasingly adopt cloud technology to streamline operations and improve patient care, the need to protect this data through encryption becomes paramount to safeguard against potential breaches and cyber threats. The emphasis on cloud encryption underscores the industry’s commitment to maintaining data privacy and security standards in an evolving digital landscape.

The banking, financial services, and insurance (BFSI) segment accounted for a major share of the cloud encryption market in 2020.

The statistic indicates that in the year 2020, a significant portion of the cloud encryption market was dominated by the banking, financial services, and insurance (BFSI) sector. This means that organizations operating within the BFSI industry were one of the primary drivers behind the adoption and implementation of cloud encryption solutions to secure their data stored in the cloud. The heightened focus on data security and compliance requirements within the highly regulated BFSI sector likely fueled this trend, as companies sought to safeguard sensitive financial information and customer data from potential cyber threats and data breaches through encryption technology.

Companies that offer Infrastructure-as-a-Service (IaaS) are expected to account for the largest market share during 2020-2025.

The statistic indicates that companies offering Infrastructure-as-a-Service (IaaS) are projected to dominate the market share from 2020 to 2025. This suggests that IaaS, a cloud computing service model where a third-party provider hosts and maintains core infrastructure, such as hardware, networking components, servers, and storage, is anticipated to experience significant growth and adoption by businesses during this period. The increasing trend towards cloud computing, scalability, cost-effectiveness, and flexibility are some of the factors driving the expected market dominance of IaaS providers. Organizations are likely to rely on IaaS to outsource their infrastructure needs, enabling them to focus on their core business activities and reduce the burden of managing complex IT infrastructure internally.

Infrastructure as a Service (IaaS) model is expected to grow at the highest CAGR during the forecast period.

This statistic indicates that the Infrastructure as a Service (IaaS) model, which provides virtualized computing resources over the internet on a pay-as-you-go basis, is projected to experience the highest Compound Annual Growth Rate (CAGR) among various cloud service models in the near future. This suggests that IaaS is gaining popularity and adoption among businesses seeking cost-effective and scalable infrastructure solutions. The high CAGR reflects the increasing demand for cloud services that offer flexibility, scalability, and reduced capital expenditures, positioning IaaS as a key player in the cloud computing market’s growth trajectory.

Around 22% of organizations are concerned about data leakage in the cloud.

The statistic “Around 22% of organizations are concerned about data leakage in the cloud” indicates that a notable portion of organizations prioritize data security and recognize the potential risks associated with storing and managing data in cloud environments. This statistic suggests that a significant minority of organizations have identified data leakage as a significant concern, reflecting the growing awareness of cybersecurity threats and the importance of safeguarding sensitive information. As more businesses transition to cloud-based solutions, understanding and addressing data leakage vulnerabilities will remain a key focus area to ensure the protection and integrity of organizational data.

Over 70% of enterprises cite security as the top factor shaping their cloud strategies, underlining the importance of cloud encryption.

The statistic that over 70% of enterprises cite security as the top factor shaping their cloud strategies highlights the significant emphasis placed on security within the realm of cloud computing. This indicates that the majority of businesses consider security to be a critical consideration when adopting or updating their cloud infrastructure. The mention of cloud encryption further underscores the importance of implementing robust security measures to protect sensitive data and ensure the confidentiality, integrity, and availability of information stored in the cloud. As data breaches and cyber threats continue to pose risks to organizations, prioritizing cloud encryption is essential in safeguarding valuable assets and maintaining trust with customers and stakeholders.

The Encryption as a Service (EaaS) segment held a sizeable share in 2020 due to its high scalability and cost-effectiveness.

The statistic suggests that the Encryption as a Service (EaaS) segment had a significant market share in 2020, primarily because of its notable scalability and cost-effectiveness compared to other encryption solutions. This indicates that more organizations chose EaaS as a preferred encryption solution due to its ability to easily adapt to changing needs and its affordability in comparison to traditional encryption methods. The high scalability of EaaS implies that it can seamlessly accommodate varying data protection requirements, making it a popular choice for businesses with evolving security needs. Additionally, the cost-effectiveness factor suggests that EaaS may provide a more economical option for organizations looking to implement robust encryption measures without incurring significant expenses.

By 2024, more than 90% of enterprises will have adopted some form of cloud encryption to protect their data.

The statistic indicates that by the year 2024, a significant majority of enterprises worldwide, over 90%, are expected to have implemented some type of cloud encryption to safeguard their data stored in cloud services. This implies a growing recognition among organizations of the critical importance of securing their sensitive information from potential cyber threats and unauthorized access. Cloud encryption technologies can enhance data security by encoding data before it is uploaded to the cloud, ensuring that only authorized users with the decryption key can access and decipher the information. The rising adoption of cloud encryption reflects a proactive approach by enterprises to strengthen their cybersecurity measures and protect their valuable data assets in an increasingly digital and interconnected business environment.

Over 50% of IT leaders believe that cloud encryption is necessary for their organizations’ security.

The statistic ‘Over 50% of IT leaders believe that cloud encryption is necessary for their organization’s security’ indicates that a majority of IT leaders perceive cloud encryption as essential for safeguarding their organization’s sensitive data stored in the cloud. This high percentage suggests that IT leaders recognize the importance of securing data against various threats in the digital landscape. Encryption technology plays a crucial role in protecting data by encoding it into a format that can only be accessed with the appropriate decryption key, thus ensuring confidentiality and integrity. The widespread belief in the necessity of cloud encryption among IT leaders highlights the emphasis on leveraging encryption techniques to enhance the security posture of organizations operating in the cloud environment.

By 2025, 85% of enterprises will store sensitive data in the cloud, signifying the need for more widespread adoption of cloud encryption.

The statistic ‘By 2025, 85% of enterprises will store sensitive data in the cloud, signifying the need for more widespread adoption of cloud encryption’ suggests that a large majority of businesses will transition to storing their sensitive data in cloud services within the next few years. This shift highlights the importance of implementing robust cloud encryption mechanisms to secure this data. Encryption is crucial in protecting sensitive information from unauthorized access and maintaining data privacy and integrity. As more enterprises leverage cloud technology for their data storage needs, the need for enhanced security measures like encryption becomes increasingly vital to safeguard against potential security threats and data breaches in the cloud environment.

References

0. – https://www.www.statista.com

1. – https://www.www.mckinsey.com

2. – https://www.www.mordorintelligence.com

3. – https://www.www.prnewswire.com

4. – https://www.www.business.att.com

5. – https://www.www.globenewswire.com

6. – https://www.www.gminsights.com

7. – https://www.www.marketsandmarkets.com

8. – https://www.www.grandviewresearch.com

9. – https://www.www.forbes.com

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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