A new report by MarketsandMarkets has provided comprehensive insights on email encryption market, projected to grow from USD 3.4 billion in 2020 to USD 9.9 billion by 2025, at a CAGR of 23.8% during the forecast period, in the post-COVID-19 scenario.
Email encryption is an essential tool to secure email messages and content, with real-time accessibility only from intended recipients.
As emails are vital business platforms used for the purpose of communicating confidential information among intended recipients; hence, email encryption solutions are needed to secure this information.
The major factors driving the growth of the email encryption market are increasing instances of phishing and spam emails, stringent industry regulations, compliances and mandate to comply with data protection directives.
Some of the prominent key players are:
- Micro Focus (UK)
- Symantech (US)
- Cisco (US)
- Trend Micro (Japan)
- Sophos (UK)
- Proofpoint (US)
- BAE Systems (UK)
- Zix (US)
- Entrust Datacard (US)
Services segment is expected to grow at the highest CAGR in the email encryption market during the forecast period
The email encryption market is segmented by component into solution and services. The services segment is expected to grow at the highest CAGR from 2020 to 2025. With the increase in the adoption of email encryption solutions, the demand for services associated with it is also growing.
The email encryption market by service has been segmented into training and education, and support and maintenance.
Email encryption services are offered by solution vendors to enable customers to efficiently use the email encryption solution and maintain it.
The email encryption services are used to reduce operational overhead costs and risks, and assist in effectively working with organizations’ complex network infrastructure.
Banking, Financial Services, and Insurance (BFSI) industry vertical is estimated to dominate the email encryption market in 2020
Enterprises across various industry verticals have been using the email messaging as one of the most common modes of communication for their business purposes.
The BFSI industry vertical is expected to generate major share of revenue during the forecast period owing to the increasing adoption of security solutions driven by the growing financial security threats across the organizations, which can lead to theft, hamper the reputation of organizations, and can cause huge financial losses.
Additionally, email encryption is expected to play a key role in healthcare enterprises.
This is majorly due to the rising spear phishing attacks and possible data breaches over the highly sensitive and confidential information and stringent compliance to regulatory requirements. This has led the healthcare industry vertical to grow at the highest CAGR during the forecast period.
North America is expected to dominate the email encryption market in 2020
The global market is segmented by region into North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America.
The technologically advanced North American region has the highest number of email encryption vendors.
Additionally, the region has witnessed large-scale implementation of email encryption solutions across various industry verticals, such as BFSI, healthcare, and IT and telecom, owing to the stringent regulations and the need to compliance.
The region is thus estimated to be the largest market for email encryption solutions. Moreover, several Small and Medium Enterprises (SMEs) and large enterprises across various industry verticals in the European and APAC region are investing in the adoption of email encryption solutions to protect their infrastructure and critical information from email frauds and thefts.
The introduction of cloud-based, hybrid and customized email encryption solutions is set to change the way businesses are protecting their critical email communications and infrastructure.