Global Email Encryption Market Grows at a Staggering CAGR of 20.05%

Introduction

Email encryption is a security measure that safeguards against unauthorized access to the content of an email exchange by encrypting it. Email encryption involves the transformation of plain-text messages that have not been encrypted into ciphertext. This ciphertext is exclusively accessible to authorized individuals. Email messages are typically transmitted in plain text when encryption is not in place. This renders the content susceptible to interception and reading by malicious entities or hackers who can access the communication lines. Email encryption can be achieved through diverse techniques, such as identity-based, symmetric, asymmetric, and hybrid encryption.

Market Dynamics

Increasing Number of Email Data Breaches Drives the Global Market

A significant aspect driving the expansion of the email encryption market is the escalating incidence of email data breaches, which substantially threaten the security and privacy of business and personal information. According to Statista, the global email subscriber count ascended to 4.26 billion in 2022 and is anticipated to rise to 4.73 billion by 2026. Globally, an estimated 306 billion emails were communicated daily in 2020.

Due to its widespread utilization, email remains a significant cybersecurity risk; the Egress estimates that by 2021, approximately 94% of malware will be transmitted via email. Moreover, according to the Cyber Security Report 2024 by Hornetsecurity, phishing remains the prevailing technique employed in email assaults, accounting for 39.6% of the total email threats. By preventing unwanted access to and manipulation of the email's content and attachments, email encryption helps to minimize these losses.

Integration of AI and ML Technologies Creates Tremendous Opportunities

Integrating machine learning (ML) and artificial intelligence (AI) can enhance email encryption solutions' performance, efficiency, and usability. Various aspects of email encryption, such as the generation, management, and distribution of encryption keys, enforcement of policies, identification of irregularities, prevention of threats, and user authentication, can be automated and improved with the assistance of AI and ML. AI and ML can also improve user satisfaction and experience by providing individualized and flexible encryption solutions that align with the user's preferences, actions, and surroundings. Therefore, industry participants incorporate AI and ML technologies to enhance email security.

For instance, SlashNext, a renowned SaaS-based Integrated Cloud Messaging Security provider for email, web, and mobile platforms, unveiled Generative HumanAI™ in February 2023. This innovative artificial intelligence solution safeguards against sophisticated threats, including advanced business email compromise (BEC), supply chain attacks, executive impersonation, and financial fraud by employing generative AI. SlashNext presently provides the most comprehensive safeguard for cloud email, encompassing protection against BEC attacks that exploit links, attachments, and natural language. As a consequence, these factors generate prospects for market expansion.

Regional Analysis

North America is the most significant global email encryption market shareholder and is expected to expand substantially during the forecast period. North America is anticipated to hold a dominant position in the global email encryption market because of the abundance of providers of email encryption solutions and the pervasive adoption of email encryption across industries, especially in the United States and Canada. The proliferation of remote work and the widespread adoption of mobile devices have generated a heightened demand for secure and versatile email communication solutions. According to Upwork, approximately 32.6 million Americans, or 22 percent of the total workforce, are anticipated to be engaged in remote work by 2025.

Moreover, the region demonstrates a strong legislative structure and an increased awareness of privacy and data security issues, which increases the demand for email encryption solutions. Executive Order 14028, "Improving the Nation's Cybersecurity," was issued by President Biden. In a subsequent issuance, the Executive Order (EO) solicited new recommendations regarding improving security measures for software supply chains and other critical cybersecurity operations. Following the zero-trust principle, the executive order mandated that federal government institutions implement a more robust and secure information technology infrastructure. These government initiatives are expected to create opportunities for market expansion.

Key Highlights

• The global email encryption market was valued at USD 38 billionin 2022. It is estimated to reach USD 27.86 billion by 2031, growing at a CAGR of 20.05% during the forecast period (2023–2031).
• Based on components, the global email encryption market is bifurcated into solutions and services. 
• Based on deployment, the global email encryption market is segmented into on-premise and cloud. The cloud segment owns the highest market share.
• Based on enterprise size, the global email encryption market is bifurcated into large enterprises and small and medium enterprises (SMEs). 
• Based on end-users, the global email encryption market is divided into BFSI, IT and telecommunication, healthcare and pharmaceutical, government and defense, energy, and others. The BFSI segment dominates the global market.
• North America is the most significant global email encryption market shareholder and is expected to expand substantially during the forecast period.

Competitive Players

1. Fortinet
2. BAE Systems
3. Mimecast
4. Cisco
5. Proofpoint
6. Zoho
7. Broadcom
8. OpenText
9. Barracuda Networks
10. Thales
11. HPE
12. Entrust
13. Fortra
14. Sophos
15. Trend Micro

Recent Developments

Recent Developments

• July 2024 - Barracuda Networks Inc. announced the expansion of its email security products, designed to assist customers in complying with national regulations in India. This expansion reflects Barracuda’s commitment to enhancing email security solutions that align with local regulatory requirements, further solidifying its position in the Indian market.
• March 2024 - Tula Mail unveiled its new post-quantum encryption protocol, TutaCrypt, aimed at securing communications and protecting against cyber threats. This innovative protocol represents a significant advancement in email encryption technology, addressing emerging security challenges posed by quantum computing and ensuring robust protection for users’ sensitive information.

Segmentation

1. By Component
   1. Solution
   2. Service
2. By Deployment
   1. Cloud
   2. On-premise
3. By Enterprise Size
   1. Small and Medium-sized Enterprises (SMEs)
   2. Large Enterprises
4. By End-User
   1. BFSI
   2. IT and Telecommunication
   3. Healthcare and Pharmaceutical
   4. Government and Defense
   5. Energy
   6. Others