Banking Encryption Software Market: Current Analysis and Forecast (2024-2032)
Emphasis on Component (Software, Services); Deployment (On-Premise, Cloud); Organization Size (Large Enterprise, Small and Medium Enterprise); Function (Disk Encryption, Communication Encryption, File/Folder Encryption, Cloud Encryption); and Region/Country
Banking Encryption Software Market Size & Forecast
The Banking Encryption Software market was valued at approximately USD 2.2 Billion in 2023 and is expected to grow at a substantial CAGR of around 13.3% during the forecast period (2024-2032) owing to the shift toward zero-trust architecture in banking highlighting the importance of encryption for protecting sensitive data.
Banking Encryption Software Market Analysis
Banking Encryption Software is the general term used to describe the security applications that enable banking companies to protect their information by encoding it in such a way that it becomes almost indecipherable. It will protect clients’ data, purchases made on the internet, and other critical documents from access by unauthorized parties, hackers, instances of fraudulence, and data theft, as well as compliance observations of GDPR and PCI DSS. The rising cyber security threats, and the adoption of internet banking. The increasing frequency of such cases and increasing customer awareness of their rights to data protection make the use of reliable encryption necessary for banks.
In this sector using new end-to-end encryption, homomorphic encryption, and quantum-resistant cryptography strategies, companies are ready to counter actual and potential cyber threats. Multi-cloud encryption tools and key management systems are implementing the efficiencies of AI security solutions in their operations. Also, mergers & acquisitions, partnerships with cybersecurity firms, and investments in the research and development of post-quantum encryption are core strategies contributing to innovation and growth in the market.
For instance, on October 21, 2024, Sophos and Secureworks (NASDAQ: SCWX), two global leaders of innovative security solutions for defeating cyberattacks, announced a definitive agreement for Sophos to acquire Secureworks. The all-cash transaction is valued at approximately USD 859 million. Sophos is backed by Thoma Bravo, a leading software investment firm.
Banking Encryption Software Market Trends
This section discusses the key market trends influencing the various segments of the banking encryption software market as identified by our research experts.
Software Transforms Banking Encryption Software Industry
The software held a significant share of the market in 2023 because of meeting the increasing demand for cybersecurity, meeting new regulations, and for security of financial information due to the growing trend of digital banking. Because of it, banking companies can protect information within cloud, mobile, and on-premise systems, which increases clients’ trust. Also, M&A, affiliations with cybersecurity industries, and investments in post-quantum cryptography then protect against future risks. In general, these efforts fostered operational resiliency and compliance with rules, which drive market growth. For instance, in March 2022, McAfee Corp. (NASDAQ: MCFE, “McAfee”), a global leader in online protection, announced the completion of its acquisition by an investor group led by Advent International Corporation (“Advent”) and funds advised by Permira, Crosspoint Capital Partners L.P. (“Crosspoint”), Canada Pension Plan Investment Board (“CPP Investments”), GIC Private Limited (“GIC”), and a wholly-owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) (collectively, “the Investor Group”).
North America leads the market.
North America accounted for the largest growth in the Banking Encryption Software market due to increased usage of digital banking solutions, higher regulatory compliance with the GDPR and CCPA, as well as increased vulnerability of Banking institutions to cyber-attacks. Concerns about safeguarding customers’ information in this region increase the pace of developing enhanced encryption techniques. These devices are adopted by implementing AI security for encryption, multiple cloud security, and strong key management. Involvement with cybersecurity companies and the push for compliance-based innovation also helps to maintain high acceptance levels. Such a strategy creates operational readiness and enhances customer confidence, which leads to growth in the market in the region.
Banking Encryption Software Industry Overview
The Banking Encryption Software market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Trend Micro Incorporated, Dell Inc., Sophos Ltd., Check Point Software Technologies Ltd., WinMagic, IBM, McAfee, LLC, Thales, Microsoft, and Broadcom.
Banking Encryption Software Market News
On October 09, 2024, Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, announced that the Zscaler Zero Trust Exchange™ cloud security platform has surpassed half a trillion daily transactions which is nearly 60 times greater than the total number of Google searches per day. This milestone underscores the unparalleled scalability, resilience, and trust customers have placed in the Zscaler platform, which enables organizations to secure users and applications, simplify operations, and advance their business.
In September 2022, SandboxAQ, an enterprise SaaS company delivering the compound effects of AI and Quantum tech (AQ) to governments and the Global 1000, announced it had acquired Cryptosense, a leading cybersecurity and encryption analysis software company. SandboxAQ's acquisition comes just weeks after the company unveiled its Strategic Investment Program and initial investment in evolutionQ.
On Jun 22, 2023, McAfee Corp., a global leader in online protection, announced McAfee Business Protection, a new comprehensive security solution for small business owners in collaboration with Dell Technologies. McAfee Business Protection helps Dell small business customers stay ahead of cyber threats and vulnerabilities with award-winning security, identity and dark web data monitoring, VPN, web protection for safe browsing and more.
Banking Encryption Software Market Report Coverage
Reasons to buy this report:
The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
The report presents a quick review of overall industry performance at one glance.
The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
The study comprehensively covers the market across different segments.
Deep dive regional level analysis of the industry.
Customization Options:
The global Banking Encryption Software market can be customized further as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Banking Encryption Software Market Analysis (2022-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global Banking Encryption Software market were the three major steps undertaken to create and analyze the adoption of Banking Encryption Software in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Banking Encryption Software market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the Banking Encryption Software market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the Banking Encryption Software market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as component, Deployment, Organization Size, Function, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Banking Encryption Software market. Further, we conducted factor analysis using dependent and independent variables such as component, Deployment, Organization Size, Function, and regions of the Banking Encryption Software market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Banking Encryption Software market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Banking Encryption Software market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
The industry’s market size, in terms of revenue (USD) and the adoption rate of the Banking Encryption Software market across the major markets domestically
All percentage shares, splits, and breakdowns of market segments and sub-segments
Key players in the global Banking Encryption Software market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Banking Encryption Software market. Data was split into several segments and sub-segments after studying various parameters and trends in the component, Deployment, Organization Size, Function, and regions of the global Banking Encryption Software market.
The main objective of the Global Banking Encryption Software Market Study
The current & future market trends of the global Banking Encryption Software market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Analyze the current and forecast market size of the Banking Encryption Software market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
Segments in the study include areas of component, Deployment, Organization Size, and Function, and regions.
Define and analyze the regulatory framework for the Banking Encryption Software
Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
Analyze the current and forecast market size of the Banking Encryption Software market for the major region.
Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
Company profiles of the Banking Encryption Software market and the growth strategies adopted by the market players to sustain the fast-growing market.
Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the Banking Encryption Software market's current size and growth potential?
The Banking Encryption Software market was valued at USD 2.2 Billion in 2023 and is expected to grow at a CAGR of 13.3% during the forecast period (2024-2032).
Q2: What are the driving factors for the growth of the Banking Encryption Software market?
The growing cybersecurity threats, increase in online transactions, rising adoption of zero-trust security models, shift to digital banking, and the emergence of quantum computing drive the banking encryption software market.
Q3: Which segment has the largest share of the Banking Encryption Software market by Deployment?
On-premise has the largest share of the Banking Encryption Software market by Deployment.
Q4: What are the major trends in the Banking Encryption Software market?
The increased adoption of AI-driven encryption, and increased use of blockchain for secure transactions is the major trend in the Banking Encryption Software market.
Q5: Which region will dominate the Banking Encryption Software market?
North America dominated the market in 2023.
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