Mobile Encryption Market

Market Overview

The global mobile encryption market size was valued at USD 3.05 billion in 2023. It is estimated to reach USD 15.27 billion by 2032, growing at a CAGR of 19.6% during the forecast period (2024–2032). In recent years, the penetration of remote work and proliferation of mobile devices in work-related tasks has led to a surge in BYOD solutions, which is anticipated to drive the global mobile encryption market as mobile encryption helps protect organization's data on employees' personal devices. Moreover, quantum computing, which can crack traditional encryption technology, is emerging quickly, leading to the development of quantum-safe technologies. It is estimated to create opportunities for market expansion as this technology can help develop enhanced and efficient mobile encryption solutions.

Mobile encryption is the process of securing data that is stored on or transmitted through mobile devices, like smartphones and tablets, by utilizing cryptographic techniques. Encryption is the process of transforming data into a specific format that can only be accessed or comprehended by authorized individuals who possess the correct decryption key.

Mobile encryption employs diverse encryption techniques, such as symmetric encryption (utilizing a single key for both encryption and decryption) and asymmetric encryption (employing distinct keys for encryption and decryption). Moreover, modern mobile operating systems frequently integrate encryption functionalities to safeguard data while kept on the device and when transmitted across networks.

Highlights

• Solution dominates the component segment
• Disk encryption dominates the application segment
• Cloud-based dominates the deployment mode segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Mobile Encryption Market Drivers:

Rapidly Growing Mobile Workforce and Proliferation of BYOD Trend

The rise in remote work and the widespread use of mobile devices for business-related activities have heightened the demand for secure communication channels. According to a Forbes report, 12.7% of full-time employees operate from their homes, indicating the swift acceptance of remote work settings. Meanwhile, 28.2% of employees have embraced a hybrid work approach. Approximately 73% of executives consider remote workers a substantial security risk. This issue emphasizes the necessity for strong security protocols.

Mobile encryption enables employees to securely retrieve and distribute sensitive information from any location using any type of device. Therefore, certain companies have implemented BYOD policies, which permit employees to utilize their personal mobile devices for work-related tasks. As per Cybersecurity Insiders, 82% of firms use a Bring Your Own Device (BYOD) program, and 68% of organizations experience an increase in productivity following the adoption of BYOD. Moreover, mobile encryption allows firms to safeguard corporate data on employees' personal devices and retain authority over confidential information. Therefore, all of these variables collectively contribute to expanding the global market.

Global Mobile Encryption Market Restraint:

Lack of Awareness and Education

The limited awareness and education on mobile encryption might greatly hinder its acceptance and execution. Many individuals and businesses may lack a comprehensive understanding of the possible hazards linked to unencrypted mobile communications and data storage. They can underestimate the probability of data breaches, identity theft, and other cyber dangers that might arise from insufficiently safeguarding sensitive information on mobile devices.

Moreover, certain consumers put convenience over security when utilizing mobile devices, selecting user-friendly features and programs without considering the possible security consequences. This mentality might result in using vulnerable methods, such as utilizing unencrypted messaging applications or accessing confidential information through unsecured networks. Therefore, these constraints impede the expansion of the market.

Global Mobile Encryption Market Opportunities:

Emergence of Quantum-Safe Technologies 

The emergence of quantum computing poses a substantial danger to conventional encryption techniques, hence requiring the development of algorithms resistant to quantum attacks. These quantum algorithms will introduce a new era of secure computing, as their underlying mathematics must be sufficiently complex to impede the speed of even highly advanced quantum computers. This stimulates investment in mobile encryption systems that possess resilience against future threats posed by quantum computing. Moreover, the participants in the encryption industry are introducing novel techniques to mitigate the threat posed by quantum computing.

For instance, in November 2023, Accops, a prominent provider of secure remote access and digital workspace solutions, strategically partnered with QNu Labs, a pioneering company in quantum-safe cryptography, indicating a significant change in cybersecurity paradigms. This collaboration aims to lead the way in developing cutting-edge solutions for secure remote access and robust authentication that tackle the difficulties arising from the emergence of quantum computing and its effects on centralized computing systems. These factors are expected to create opportunities for vendors in the mobile encryption market.

Regional Analysis

North America Dominates the Global Market

Based on region, the global mobile encryption market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America is the most significant global mobile encryption market shareholder and is expected to expand substantially during the forecast period. The mobile encryption market is primarily governed by North America, mainly because of the strong presence of large technological companies and stringent regulatory frameworks. The demand for encryption solutions is driven by the region's strong focus on data privacy and security and the increased usage of smartphones. The prevalence of smartphone ownership in the United States is steadily rising. Only 35% of Americans owned a smartphone in 2011. Most individuals in the United States in the 18-49 age group possess a smartphone, with a percentage exceeding 95%. These individuals tend to bring their smartphones with them to their workplaces.

Moreover, there is a clear inclination towards remote and hybrid work in this region due to the population's significant awareness of technology. Upwork predicts that by 2025, around 32.6 million Americans will be working remotely, making up nearly 22% of the total workforce. This assessment suggests a gradual and consistent shift towards remote work arrangements. This is anticipated to drive the growth of the mobile encryption market in North America.

Furthermore, the rising occurrences of cyber-attacks and data breaches contribute significantly to expanding this region's market. As per data from the Identity Theft Resource Center (ITRC), there has been a steady rise in the average number of breaches in the United States in recent years. The United States had a significant increase in data breaches, with the number of breaches rising from 1,506 in 2017 to 1,826 in 2021. Similarly, according to the data outlined in IBM's 2022 Cost of Data Breach Report, Canada secured the third position regarding the highest average total expenses resulting from data breaches. The country's average cost of data breaches rose to USD 5.40 million in 2021, up from USD 4.50 million in 2020.

In Asia-Pacific, mobile encryption solutions are being rapidly adopted. The regional market expansion is driven by factors such as the rising prevalence of smartphone usage, the ongoing process of digital transformation, and the increasing awareness of data security. Market growth in Asia-Pacific will likely accelerate by adopting mobile encryption solutions in growing markets such as Singapore, India, and China.

Moreover, there has been an increase in the introduction of innovative mobile encryption technologies. For instance, in January 2024, the Indian Army created a mobile ecosystem named SAMBHAV (Secure Army Mobile Bharat Version), which features end-to-end encryption. The SAMBHAV mobile ecosystem is designed to provide secure communication with seamless connectivity, even while in motion, representing a notable advancement in India's defense capabilities. Traditional military capabilities are no longer the sole indicator of military might. These factors promote the growth of the regional market.

Segmental Analysis

The global mobile encryption market is bifurcated into components, applications, deployment modes, and end-users.

Based on components, the global mobile encryption market is segmented into services and solutions. 

The solutions segment owns the highest market share. Mobile encryption solutions encompass a range of techniques and technologies employed to safeguard data on mobile devices, including smartphones and tablets. Common mobile encryption solutions encompass several techniques, such as full disk encryption (FDE), file-level encryption, end-to-end encryption (E2EE), secure messaging applications, biometric authentication, enterprise mobility management (EMM), and mobile device management (MDM). These mobile encryption solutions aid individuals and companies in safeguarding sensitive data and upholding confidentiality, integrity, and privacy in a world increasingly centered around mobile devices.

Based on application, the global mobile encryption market is bifurcated into disk encryption, file/folder encryption, cloud encryption, and others. 

The disk encryption segment owns the largest market share. Disk encryption is a security measure employed to safeguard data stored on a mobile device's hard drive or storage medium. The process involves transforming the data stored on the disk into an incomprehensible format, which can only be decrypted with the decryption key or password. This guarantees that if someone has physical possession of the disk, they cannot access the contents without the appropriate authentication.

Moreover, there are two primary categories of disk encryption, i.e., full disk encryption (FDE) and file-level encryption. Full Disk Encryption (FDE) ensures that all disk components, such as the operating system, system files, and user data, are encrypted. This guarantees thorough safeguarding of all data stored on the disk. File-level encryption selectively encrypts individual files or directories instead of encrypting the entire disk. Users can encrypt certain files or folders, offering increased adaptability but necessitating human selection of the data to be encrypted.

Based on deployment mode, the global mobile encryption market is bifurcated into on-premises and cloud-based. 

The cloud-based segment dominates the global market. Cloud-based mobile encryption involves the application of encryption methods to safeguard data on mobile devices while the encryption keys are handled and stored on the cloud. Access to the encryption keys is rigorously regulated, usually necessitating robust authentication mechanisms such as multi-factor authentication or biometric authentication. This guarantees that only authorized users can decode the data.

Secure communication methods transport encrypted data between the mobile device and the cloud server for accessing or updating data on the device. This mitigates the risk of interception or tampering with the data while it is transmitted. Administrators can remotely delete all saved data if the mobile device is lost or stolen. Due to encryption, the data stays safeguarded even if unauthorized individuals acquire the device.

Based on end-users, the global mobile encryption market is bifurcated into IT and Telecom, BFSI, aerospace and defense, healthcare, and others. 

The IT and Telecom segment contributed to the greatest market share. Mobile encryption is essential in the IT and telecom industry, particularly for safeguarding the security and confidentiality of valuable data sent and stored on mobile devices. As stated in a survey released by Samsung, 82% of senior IT executives believe smartphones play a crucial role in improving employee productivity and facilitating quick decision-making. Moreover, 31% of IT executives claim that their firms have fully implemented a Bring Your Own Device (BYOD) policy for mobile devices. This is projected to stimulate the expansion of the segment.

Recent Developments

• October 2023- Google introduced client-side encryption in its Gmail mobile applications, offering customers enhanced reassurance while sending emails while on the move.
• December 2023- Meta introduced default end-to-end encryption for personal messages and calls on Messenger and Facebook, along with a range of additional features that empower users to have more control over their messaging experience.