Encrypting or encoding data and communications transmitted or received over a computer network is network encryption. It is a specific technique that uses several technologies, strategies, and standards to ensure that communications between two or more network nodes are unreadable while in transit.
With the amount of data traffic handled by network infrastructure increasing at an unprecedented rate in recent years, network security has become a critical component of the currently connected world.
Businesses across industries have been increasingly affected by data breaches, with major breaches such as those at Equifax and Uber costing both companies millions of dollars.
Today's high-capacity networks necessitate far more than high-capacity bandwidth. They require a security policy to protect all critical data at rest and in-flight as it travels worldwide over metro, regional, long-haul, and subsea distances.
Data breaches hurt a company's bottom line and expose customer information. According to Ponemon study, every data breach exposes roughly 25,500 records, putting the cost of a single violation in the millions of dollars, not to mention the unimaginable loss of customer trust and brand image damage.
According to this analysis, the average overall cost of a data breach in the United States in 2019 was USD 8.19 million. In addition, the cost per record lost varies by industry; in the healthcare industry, the cost per record lost is approximately double. Despite the potential of a breach, the network's traffic flow increases.
As bandwidth needs climb, a network must be able to adapt to offer increasing capacities while decreasing operational complexity elegantly. Furthermore, given the increasing sophistication and frequency of data breaches, no company is immune to the ever-present threat of hostile assaults to get sensitive and private information.
As businesses across the globe move toward digital transformation, laws such as Bring Your Own Device (BYOD) are becoming more prevalent. Thanks to the rising usage of cloud computing solutions, businesses may now access files and other data from anywhere. As a result, more devices are connected to a company, giving hackers greater opportunity to break into corporate networks.
By 2020, according to LogicMonitor, a significant provider of SaaS-based performance monitoring products, 83% of enterprise workloads will be in the cloud. Over 70% of workplaces are predicted to have implemented BYOD by the same time, with most firms preparing ahead of time to facilitate integration.
As organizations transfer their workloads and apps to the cloud, network traffic will increase, making it an enticing target for espionage hackers wanting to steal confidential information from companies. The importance of network encryption has grown as the number of attacks on networked systems has increased.
According to the 2019 Right Scale Annual State of the Cloud Report, 91% of users utilized the public cloud, 72% used the private cloud, and 69% used the hybrid cloud. As more companies migrate to the cloud, they must also invest in cloud computing security by implementing better encryption solutions.
Governments and militaries were confronted with significant new issues, such as ensuring that staff has secure access to sensitive or classified information that keeps nations safe.
To assist government and military personnel working from home (WFH) and other remote areas, Viasat is providing a network encryption solution designed to help government employees, first responders, elected officials, and warfighters securely access data from any location equipped with a personal, public, or private broadband network.
The COVID-19 pandemic, according to Viasat, posed a significant threat to people all across the world. All precautions were taken to safeguard the population's safety. Using its leading remote access network encryption technology to offer safe communications to classified and sensitive data, the company was committed to keep government customers connected and informed during this challenging time.
The North American region dominated the global network encryption market, with revenue valued at USD 3 billion by 2030 at a CAGR of 9%.
As one of the most important countries for cybersecurity solutions, the United States contributes to North America's most significant market share. In the United States, end-to-end encryption has been a significant point of disagreement between large internet companies and law enforcement. In June 2020, three Republican senators introduced legislation forcing tech companies to give a backdoor to end-to-end encrypted communication.
At a CAGR of 10% estimated to generate USD 2 billion in revenue by 2030, the Asia-Pacific region accounts for the second-largest proportion of the global network encryption market.
With such large networks with encryptions being developed in Asia-Pacific, it is expected that awareness of the same benefits would spread to other countries, leading to a rise in demand for network encryption in the region.