The encryption software market size is expected to grow from USD 3.05 billion in 2016 to USD 8.94 billion by 2021, at a CAGR of 24 percent over the next 5 years. The major growth drivers of the market include increasing concerns pertaining to critical data loss and theft, dynamicity of business environments across various industry verticals, and compliance to regulations and guidelines.Encryption software solutions have been deployed across various industry verticals including banking, financial services, and insurance (BFSI), healthcare, government and public sector, telecom, retail, aerospace and defense, and others. The telecom vertical is expected to witness the highest CAGR during 2016–2021. However, BFSI vertical is estimated to have the largest market size in 2016.
The global encryption software market has been segmented on the basis of regions into North America, Europe, Asia-Pacific (APAC), Middle-East and Africa (MEA), and Latin America to provide a region-specific analysis in the report. The North American region, followed by Europe, is expected to become the largest revenue generating region for encryption software solution vendors in 2016. This is mainly because in the developed economies of the US and Canada, organizations are highly focused on the early adoption of innovative solutions obtained from research and development in security technologies. The APAC region is expected to be the fastest growing region in the encryption software market. Rising need to defend against advanced cyber-attacks and increase in adoption of cloud-based solutions drives the regional market growth.