Network Encryption Global Market Report 2022: Growing Concern Around Security Breaches Fuels Sector

DUBLIN, March 24, 2023 /PRNewswire/ -- The "Network Encryption Market, By Transmission Type, By Component, By Organization Size, By Industry Vertical, and By Region Forecast to 2030" report has been added to  ResearchAndMarkets.com's offering.

The market dynamics of the global network encryption industry indicate that the market size was valued at USD 3.76 Billion in 2021, and it is expected to grow at a CAGR of 7.70% during the forecast period.

Various end-use industries such as healthcare and retail are rapidly growing, which is rising demand for network encryption solutions owing to digitalization of processes. Cybersecurity expenditure is expected to increase to USD 1.75 trillion between 2021 and 2025, owing to the rise in cybercrime and the necessity for digital organizations and consumers to protect themselves from such crimes.

Cybersecurity incidents result in various consequences, such as financial loss, loss of productivity, reputation damage, legal liability, and business continuity problems, which are driving the demand for network encryption solutions by large and small & medium-sized enterprises .

Moreover, the rapid adoption of cloud computing with digitalization is also raising demand for the protection of data in cloud storage, as well as intellectual property. Cryptographic technologies offer fundamental operations and enable many features that enhance the Internet's greatest advantages. Businesses are constantly looking for new ways to secure their data as most legacy systems are incapable of securing data in all states owing to external hackers and inside workers. Successful encryption solutions aid in protecting data at all times, both at rest and in transit .

The growing concern for network security breaches is one of the key factors driving the market revenue growth. A security breach occurs when an unauthorized individual or program gains access to a network or system, which can lead to data theft, virus attacks, and software tampering. Research shows that in 93% of cases, an external attacker can breach an organization's network perimeter and gain access to local network resources. The transformation of everyday life has led to a surge in the quantity of data flowing, which increases the risk of data breaches. Additionally, the rapid adoption of Bring Your Own Device (BYOD) initiatives in organizations across various sectors is expected to drive market growth by improving employee productivity.

Lack of knowledge about security threats is a significant restraint to market growth. Unregulated devices pose a significant risk if suitable security measures are not implemented, as they are more prone to malware attacks. With the rising number of products and services being utilized in complex work environments, human error is more likely to occur and can jeopardize the security of the company in several ways. The majority of human errors are caused by end-users who are unaware of the proper course of action. For example, users who are unaware of the risk of phishing are more likely to fall for phishing efforts, and anyone who is unaware of the risks of public Wi-Fi networks is at risk of having their credentials stolen.

Key Takeaways

Transmission Type Outlook:

The global network encryption market is divided into two segments based on technology service: optical transmission and traditional. The traditional segment has three sub-segments: radiowaves & microwaves, coaxial cable, and twisted pair cable. The optical transmission segment is expected to grow significantly during the forecast period, as it offers long-distance and high-capacity commercial transmission, reduced noise and interference, increased bandwidth, and data security. The increasing demand for high-speed data transfer with better security is driving businesses to adopt fiber optics, which has a direct impact on the safe operation and innovative growth of telecommunications networks.

Component Outlook:

The global network encryption market is divided into two segments based on component: hardware and services. The hardware segment is expected to grow significantly during the forecast period, as it allows for encryption of a key's complete contents after it has been used. Hardware encryption has several advantages, including protecting data in cases where a laptop or device is missing or stolen, not requiring installation on the host computer's operating system, and being continuously active and immune to virus or attacks designed to deactivate encryption systems.

Industry Vertical Outlook:

The global network encryption market is divided into several segments based on industry vertical:IT & telecommunications, Banking, Financial Services, and Insurance (BFSI), government, media & entertainment, and others. In 2021, the IT & telecommunications segment accounted for a significantly large revenue share, driven by the increasing number of mobile devices and Internet of Things (IoT)-based devices, growing data consumption due to high utilization of cloud services and technologies such as Artificial Intelligence (AI) and Machine Learning (ML), and handling of large dataset volume. Additionally, increased investments in optical communication, network data breaches, and regulatory requirements are driving revenue growth in this segment. Furthermore, the rising acceptance of private networks, network automation trends, and the arrival of 5G networks are expected to generate significant growth opportunities for the IT and telecom industry.

Regional Overview:

In 2021, North America held the largest revenue share in the global network encryption market due to the region's high adoption rate of automation across various growing sectors and technological advancements. With its advanced technology, North America provides a supportive environment for various technology-based startups as well as robust presence of major corporations prioritizing remote work, leading cloud-based operations to flourish. The rapid growth of 5G networks has enabled devices to be connected at faster speeds and with larger bandwidths, but it has also led to an increase in cybersecurity attacks. In 2020, 46% of cyberattacks were targeted at the United States, with almost 40% of breaches using phishing, around 11% involving malware, and approximately 22% involving hacking .

Europe is expected to register a steady growth rate over the forecast period, with various companies and start-ups investing and collaborating due to rising demand for automation and productivity tools, leading to high demand for network encryption for security. For instance, Europe plans to launch its first quantum encryption satellite, Eagle-1, for ultrasecure communications in 2024, which is expected to lead an ultrasecure communications network for Europe .

Key Topics Covered:

Chapter 1. Market Synopsis

Chapter 2. Executive Summary

Chapter 3. Indicative Metrics

Chapter 4. Network Encryption Market Segmentation & Impact Analysis

Chapter 5. Network Encryption Market By Transmission Type Insights & Trends

Chapter 6. Network Encryption Market By Component Insights & Trends

Chapter 7. Network Encryption Market By Organization Size Insights & Trends

Chapter 8. Network Encryption Market By Industry Vertical Insights & Trends

Chapter 9. Network Encryption Market Regional Outlook

Chapter 10. Competitive Landscape

Chapter 11. Company Profiles

Companies Mentioned

• Thales
• Nokia
• ADVA Optical Networking
• Juniper Networks Inc.
• Atos SE
• Colt Technology Services Group Limited
• Huawei Technologies Co. Ltd.
• Raytheon Technologies Corporation
• Rohde & Schwarz GmbH & Co. KG
• Cisco Systems Inc.

For more information about this report visit https://www.researchandmarkets.com/r/rdw2fw

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