What is the Historical Analysis of the Banking Encryption Software Market Size?
The banking encryption software market has seen considerable growth due to a variety of factors.
•The market size for banking encryption software has seen a swift expansion in the past few years. It is projected to rise from $4.09 billion in 2024 to $4.55 billion in 2025, with a compound annual growth rate (CAGR) of 11.3%.
The considerable increase in the past can be linked to the surge in cyber threats, strict data protection rules, the upsurge in the use of cloud computing, the transition to mobile banking, and measures against fraud and for compliance.
What is the Forecasted Growth of the Banking Encryption Software Market Size?
The banking encryption software market is expected to maintain its strong growth trajectory in upcoming years.
• In the forthcoming years, the banking encryption software market is projected to witness swift expansion, escalating to $7.93 billion by 2029 with a compound annual growth rate (CAGR) of 14.9%.
The growth trajectory during the projection period can be tied to the expansion of digital banking, augmented consciousness of data privacy rights, the application of groundbreaking technologies such as blockchain and Internet of Things (IoT) in banking, and the burgeoning banking, financial services, and insurance (bfsi) sector. Significant trends foreseen during the interim include homomorphic encryption, quantum-resistant cryptography (qrc), capitalizing on blockchain's dispersed ledger technology, AI-driven threat identification and anomaly detection, as well as scalable and adaptable encryption solutions.
What Key Factors and Trends are Driving the Growth of the Banking Encryption Software Market?
As cyberattacks increase, the banking encryption software market is projected to expand. These harmful activities are intent on exploiting computer systems, networks, and digital devices, putting security at risk, pilfering confidential data, causing operational disturbances, or inducing damage. The necessity for banking encryption software, which safeguards financial data and communication, becomes increasingly evident. Its criticality lies in mitigating the dangers of cyberattacks, establishing appropriate key management, frequently updating and patching software, deterring social engineering attacks, and employing a multi-tiered security approach. For example, the Australian Cyber Security Centre, an Australian cyber security agency, reported in February 2023 that the number of cybercrime reports in 2022 had increased by 13% from the previous year to 76,000. Hence, the surge in cyberattacks is fueling the expansion of the banking encryption software market.
What are the Market Segments in the Banking Encryption Software Market?
The banking encryption software market covered in this report is segmented –
1) By Component: Software, Services
2) By Encryption Type: Symmetric Encryption, Asymmetric Encryption, Hashing Algorithms
3) By Function: Disk Encryption, Communication Encryption, File Or Folder Encryption, Cloud Encryption, Other Functions
4) By Deployment Model: Cloud, On-premise
5) By Enterprise Size: Large Enterprises, Small And Medium Enterprises
Subsegments:
1) By Software: Data Encryption Software, Database Encryption Solutions, File And Folder Encryption Tools, Network Encryption Software, Endpoint Encryption Solutions, Cloud Encryption Services
2) By Services: Implementation Services, Consulting Services, Support And Maintenance Services, Training And Education Services, Managed Security Services
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What Trends are Shaping the Banking Encryption Software Market?
The rise of technological innovations is a predominant trend gathering momentum within the bank encryption software market. Many leading businesses within this market are creatively producing fresh products to maintain their dominance. As an example, in October 2022, Mastercard Inc., a financial services business located in the US, initiated a new risk management service related to cryptocurrencies. This innovative service uses blockchain information, AI, and accessible crypto business records to identify potential criminal involvement in cryptocurrency exchanges within the Mastercard infrastructure. The chief objective of this service is to assist banks in unearthing and averting fraudulent activities on crypto merchant platforms.
Who Are the Key Players in the Banking Encryption Software Market?
Major companies operating in the banking encryption software market include:
• Microsoft Corporation
• Dell EMC
• Intel Corporation
• International Business Machines Corporation
• Cisco System Inc.
• Broadcom Inc.
• Hewlett Packard Enterprise
• Thales Group
• NetApp Inc.
• Gemalto
• Digital China Holdings Limited
• Check Point Software Technologies Ltd.
• McAfee LLC
• Trend Micro Inc.
• Proofpoint Inc.
• Zscaler
• Eset Spol S.r.o.
• Wondershare Technology Co. Ltd.
• F-Secure
• CipherCloud
• Seclore
• Sophos Ltd.
• Digital Guardian
• WinMagic
• PKWARE Inc.
• Skyhigh Networks
• InfoSec Global Inc.
What are the Regional Insights into the Banking Encryption Software Market?
North America was the largest region in the banking encryption software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the banking encryption software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
