Global Statistics Representing Mobile Encryption Market Scenario
Mobile encryption refers to the process of scrambling or cyphering valuable data in devices to restrict unauthorized access. This procedure is applied on data in a mobile device or data being transmitted to another device through a medium. Growing usage and dependability of individuals on mobile devices has been creating an urgent need for secure storage of sensitive information; this is one of prime factors contributing to the growth of the mobile encryption market. Additionally, high disposable income and increasing adoption of advanced technologies due to rapid urbanization are expected to fuel market growth. High demand for integrated encryption solutions and cloud-based mobile encryption is creating a generous opportunity for the development of the market.
According to the U.S. Department of Homeland Security (DHS), more than 20 billion devices are expected to be connected to the Internet by 2020. The use of internet-enabled devices, availability of high-speed communication systems and generous rise in internet access facilitating productivity across major industries present new cybersecurity challenges associated with significant risks.
Global mobile encryption market was valued at USD 750.9 million and anticipated to grow at CAGR 19.6 % during the forecast period 2019– 2026.
The mobile encryption market is expected to witness significant growth in the near future, owing to the adoption of technological advancements in small & medium enterprises (SMEs) and large enterprises. Evolution of threats, mobile device proliferation, and enhanced adoption of cloud technologies are expected to be the key factors fostering market growth.
Increasing demand for industrial cyber security such as aerospace & defense, automotive, and healthcare, among others is expected to expand the mobile encryption market. The rapid development of smart cities with increasing digitization along with end-to-end security services is expected to drive the mobile encryption market. Increased adoption of IoT solutions and services is also projected to propel market growth during the forecast period, 2019–2026.
The mobile encryption market can be segmented by component, application, deployment mode, end user, and region.
On the basis of component, the mobile encryption market can be segmented into services and solution. The solutions segment is expected to witness significant growth in the mobile encryption market, due to the growing demand for integrated encryption solutions along with cloud-based mobile encryption solutions.
Based on application, the mobile encryption market can be segmented into disk encryption, file/folder encryption, cloud encryption, and others. Cloud encryption safeguards sensitive business information from security breaches and thefts. Rising adoption of cloud technology or cloud infrastructure service, and data compliance across different business processes is expected to drive the mobile encryption market in the segment. The relative risks affecting the protection of stored data in cloud environments further bolster the growth of the segment.
By deployment mode, the mobile encryption market can be segmented into on-premises and cloud based. Increasing demand for cloud-based technology accounting, owing to its user-friendly features, is likely to propel the growth of the mobile encryption market. Additionally, emergence of Internet of Things (IoT) enabled technologies is also expected to provide impetus to the growth of the segment.
Based on end user, the mobile encryption market can be segmented into IT & Telecom, banking and financial services, aerospace and defense, healthcare, and others. Stringent rules and regulations such as Advanced Encryption Standard (AES) and Payment Card Industry Data Security Standard (PCI DSS) mandate data security across several verticals such as BFSI, healthcare and IT & telecom, among others.
Geographically, the mobile encryption market has been segmented into North America, Asia Pacific, Europe and Latin America, Middle East & Africa (LAMEA).
In North America, the growing set of sophisticated malicious actors who seek to exploit cyberspace in the region is expected to drive the adoption of mobile encryption services. According to DHS, the U.S. is increasingly facing threats for motivations including espionage, political & ideological interests, and financial gain. Additionally, hackers are increasingly empowered by modern information and communication technologies, which enable them to grow in sophistication and transnational reach in the region. These factors are expected to drive the mobile encryption market in the region during the forecast period.
Europe is projected to witness substantial growth in the mobile encryption market due to the presence of smartphone internet users, which has been driving the adoption of encryption services for mobile devices. Rising concerns about data security and privacy are expected to significantly drive the mobile encryption market in Europe. For instance, ransomware incidents such as WannaCry & NotPetya exhibit the growth of IoT, which complicates the threat for every day devices.
Asia Pacific is expected to witness considerable growth in the mobile encryption market, owing to the increasing number of digitalization initiatives by governments in the region. Adoption of mobile encryption solutions across emerging economies such as Singapore, India and China is expected accelerate market growth in Asia Pacific. Moreover, increasing internet usage in developing countries such as India, and China among others is also slated to propel market growth. The growing deployment of BYOD concepts with stringent regulations across several industry verticals such as telecom, retail, and defense, among others are further expected to boost the growth of the mobile encryption market.
The LAMEA region is expected to witness moderate growth, owing to the region’s stringent regulations. For instance, regulators in the UAE banned some key services of BlackBerry over a dispute on how data is being stored and transmitted. This ban was enforced due to concerns regarding data processing and storage in servers in the Research in Motion (RIM) base, which is in Canada and the U.S., thereby preventing access authority to the UAE.
Growing demand for secure communication technology has been driving market growth. For instance, in 2016, KoolSpan Inc. announced a partnership with Encrypted Secure Voice and Messaging Solutions (EMS), a leading provider in the Middle East, Commonwealth of Independent States (CIS), Africa, Eastern Europe and Asia to enhance the availability of mobile encryption solutions for carriers, enterprises and government organizations and meet the demand for secure communication technology for maintaining end-to-end encrypted mobile communications.
Some of the prominent players in the mobile encryption market are International Business Machines Corporation (U.S.), DELL (U.S.), McAfee, LLC (U.S.), Symantec Corporation (U.S.), Check Point Software Technologies Ltd. (Israel), ESET North America. (U.S.), Trend Micro Incorporated. (Japan), Sophos Ltd. (U.K.), Bitdefender (Romania), and Hewlett Packard Enterprise Development LP (U.S.).
Mobile Encryption Market Segmentation