How big is the Encryption Market | Trends & Insights 2031

Q: What is the main factor driving encryption market demand?

The exponential rise in cyberattacks and the need to secure critical business data across digital platforms are the key drivers.

Q: Who are the leading companies in the Encryption market?

Leading companies include Thales Group, IBM Corporation, Broadcom Inc. (Symantec), Microsoft Corporation, McAfee Corp., and others.

Q: Which industry holds the largest share in the encryption market?

The Banking, Financial Services, and Insurance (BFSI) sector dominates due to high data sensitivity and regulatory compliance requirements.

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6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA6312

Publication Date: Jul 2025

What Is the Size of Encryption Market?

According to 6Wresearch internal database and industry insights, Global Encryption Market was valued at USD 12.4 Billion in 2024 and is expected to reach USD 31.7 Billion by 2031, growing at a CAGR of 9.70% during the forecast period.

This growth is being accelerated by increasing data privacy concerns, surging ransomware and cyberattack cases, expanding adoption of cloud services, and growing regulatory frameworks mandating encryption across industries such as healthcare, BFSI, and telecommunications.

Growth Factors of the Encryption Market

Increased availability of cloud computing platforms and migration to encrypted cloud storage.
Growing customer compliance requirements like GDPR, HIPAA, and PCI-DSS pushing enterprises to adopt encryption.
Increased data breaches are driving demand for end-to-end encryption across communications platforms.
Integration of encryption is evident in new IoT offerings, mobile applications, and enterprise software solutions.
Increasing demand for hardware-based encryption from operational and critical infrastructure companies.
Increased geopolitical tensions are driving more encryption activity in defense/government/ intelligence.

Encryption Market Trends

Encryption Market is experiencing increase in zero trust architecture, adoption of homomorphic and quantum-resistant encryption, and use of "encryption as a service" (EaaS) model. Enterprises are also moving to hybrid encryption services and deploying robust key management systems to address multi-cloud security vulnerabilities.

Emerging Developments in the Encryption Market

Encryption Market is also seeing emerging developments, such as artificial intelligence embedded encryption solutions, encrypted blockchain technology for decentralized systems, and post-quantum cryptography solutions that are meant to "future-proof" intellectual property and sensitive data. Edge encryption solutions for real-time protection of data being transmitted between connected devices is also gaining traction in both smart cities and industrial automation verticals.