Network Encryption Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)
The Network Encryption Market size is expected to grow from USD 4.56 billion in 2023 to USD 6.94 billion by 2028, at a CAGR of 8.74% during the forecast period (2023-2028). The growth of network encryption is primarily attributed to the increasing concern for data security and privacy in organizations.
New York, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Network Encryption Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06484248/?utm_source=GNW
The Network Encryption Market size is expected to grow from USD 4.56 billion in 2023 to USD 6.94 billion by 2028, at a CAGR of 8.74% during the forecast period (2023-2028).
The growth of network encryption is primarily attributed to the increasing concern for data security and privacy in organizations.
*Key Highlights*
The growth of the internet, cloud computing, and the increasing number of cyberattacks have led to the need for more secure data communication and storage. Additionally, increasing government regulations, such as the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS), require organizations to implement secure data transmission methods, further driving the growth of network encryption.
Some of the most important factors affecting the growth of the market are the growing number of network security breaches, the growing use of cloud technologies by many organizations, and the growing need to meet ever-changing regulatory standards for better data protection.
Furthermore, the growth in the adoption of Internet of Things (IoT)-based solutions by the various end-user industries in their operations has increased the need for encryption to secure data transmitted over IoT networks, supporting market growth.
The network encryption industry has grown because new encryption algorithms and better encryption software have been made.For example, the use of encryption algorithms that can’t be broken by quantum computers is becoming more important because traditional encryption methods could be broken by quantum computers.
Putting encryption solutions into place can be hard and expensive, especially for businesses with few IT resources.For some organizations, the cost of buying and setting up encryption solutions, as well as the cost of training staff to use and maintain them, can be a reason not to use them.Also, some encryption algorithms may have technical problems that make them unsuitable for certain types of networks.Such factors are expected to challenge the market’s growth during the forecast period.
The COVID-19 pandemic had a big effect on the network encryption market. As the trend toward working from home grew, there was more demand for secure remote work solutions. With more people working from home, there was a need for secure and reliable virtual private networks (VPNs) and remote desktop solutions to protect sensitive corporate data. This led to a surge in demand for network encryption products and services, boosting growth in the industry. Additionally, businesses also increased their investment in cybersecurity to address the rise in cyber-attacks and security breaches related to the pandemic.
Network Encryption Market Trends
Telecom & IT Sector is Expected to Hold a Significant Share of the Market
Some of the main things that are pushing the IT and telecom industries around the world to use network encryption are the growing use of the cloud, the growing investment in optical communication, the growing number of network data breaches, and strict government regulations.
Furthermore, the growing adoption of a private network, trends in network automation, and the rollout of 5G networks are expected to bring a significant increase in network traffic, which will require more advanced security measures. Network encryption will be a key part of keeping sensitive data safe on these networks, which will open up new business opportunities.
The market’s vendors are also offering products to secure Data Center Interconnect (DCI) applications. Network encryption combines ease of operation and administration for IT and telecom vendors to enable simple-to-implement data protection strategies. For instance, Rohde & Schwarz relies on the R&S Trusted VPN IPsec-based encryption solution for secure voice and data communications at 78 locations in 40 countries.
Also, the growing trend of "bring your own device"(BYOD) in IT companies and the growing use of the "enterprise storage network"(ESN) are both expanding the use of private networks in IT companies around the world. Also, telecom operators are changing from network companies to cloud service companies so they can offer new services and apps, store and share content over different networks, and roll out new services and apps. The GDPR Report says that network-attached storage devices are among the IT industry’s most vulnerable.
The GSMA says that 56% of mobile network operators around the world don’t have any or very little automation in their networks. 80% of MNOs (mobile network operators) think that 40% of their network operations will be automated by 2025. From a foundational perspective, this is not an incremental step in a world moving to 5G. The new standalone architecture (SA) and distributed vRAN (virtual radio access network) that 5G will bring are defined as cloud-native.
North America is Expected to Account for the Largest Market Share
North America is a well-equipped region in terms of technology. It has a big share of the market because of developed economies like the United States and Canada, and it has the right platforms for businesses of all sizes to follow government rules and regulations.
The government of North America has put in place rules that require sensitive data to be protected while in transit.This has driven the need for network encryption solutions to meet these regulatory requirements. In May 2022, the National Institute of Standards and Technology (NIST) prepared new encryption standards designed to withstand attacks by quantum computers.
As the tech industry in the region continues to grow, there is more demand for network encryption solutions. This is because cloud computing is becoming more popular, and organizations want to protect sensitive data while it is being sent to and from the cloud.The companies are also spending money on research and development to come up with more advanced ways to encrypt networks.This investment is contributing to the growth of the industry.
While the recently amended EARN IT Act would leave strong encryption on unstable ground if passed into law, The Lawful Access to Encrypted Data Act (LAEDA) is a direct assault on the tool millions of people rely on for personal and national security each day.
Further, with the increase in the number of network breaches in the region, the demand for encryption increased. U.S. government data shows that the number of healthcare breaches in the first five months of 2022 has nearly doubled from last year. For instance, according to news reports, in August 2022, Indiana led the nation in medical data breaches, with more than 80 million records affected, which accounted for nearly 25% of all breached records during the 13 years until June 2022.
Network Encryption Industry Overview
The global network encryption market is fragmented, with a number of players operating in the space. The major players with a prominent share in the market are focusing on expanding their customer base across foreign countries by leveraging strategic collaborative initiatives to increase their market share and profitability. Thales Trusted Cyber Technologies, Atos SE, Juniper Networks, Inc., Certes Networks, Inc., Senetas Corporation Ltd., Viasat Inc., Raytheon Technologies Corporation, Securosys SA., and Packetlight Networks are some of the major players present in the current market and undergoing strategic initiatives such as mergers, acquisitions, collaboration, product innovation, and others.
In January 2023, Equinix, a company that makes digital infrastructure, worked with Aviatrix, a company that makes cloud services, to make high-performance encryption for enterprise environments.With this partnership, the Aviatrix Edge software will be made available in more than 25 of Equinix’s global business exchange data centers.The combined solution, which uses Equinix’s Network Edge and Equinix Fabric, gives you the fastest, most secure connection to the cloud so you can see what’s going on in multiple clouds.
On the first day of the International Exhibition of National Security and Resilience (ISNR) in October 2022, EDGE entity KATIM unveiled KATIM Gateway 9011. KATIM is one of the leaders in developing new and very secure ways to communicate. It is designed to defend the most sensitive data, networks, and assets; it is built with the UAE national crypto suite application-aware encryption; and it features powerful hardware with full software programmability for future use cases.
*Additional Benefits:*
The market estimate (ME) sheet in Excel format
3 months of analyst support
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