Digitization is on the rise in every walk of human life. Increasing adoption of IT solutions and virtual data has its own consequences, positive and negative. Data protection is by far the biggest concern for the organizations depending on digital data. Along with confidentiality, data security also becomes vital in case of protecting the information from virus attacks and loss. Encryption of digital information is one of the easiest ways to ensure that the digital data is safe from many such security concerns. Data encryption takes place in two ways, which include hardware and software encryption. Over the past few years, hardware-based encryption services have taken a rapid turn in upward direction. Rising demands and growing innovation is also reflecting the revenue aspect of global hardware encryption market, which is poised to make exception growth in the next few years.
Overview of Hardware Based Encryption Industry
According to the experts, hardware encryption market started gaining attention since the beginning of last decade, coinciding with the rising adoption of digitization. It is also the time when average cost prices for hardware encrypted products started reducing. Technology and innovative applications of these products have a vital role to play in this entire process. Hence, technological advancement is one of the strongest drivers for hardware encryption market. The similar trend is expected to be constant for the next few years to come, which is great news for the global industry. Growth in each market segment is expected to negate the different between hardware and non-hardware based technologies making these products a standard component in disk drives and USBs.
Increasing cost of data breach and reducing pricing and technological difference between non-hardware and hardware based products is expected to drive growth in global hardware encryption market. Organizational rules and regulations along with government policies for data security and privacy are also expected to drive the industry further. As a result of all these strong factors, the global industry for encrypted technology is estimated to touch new heights, in terms of revenue, global presence, rate of adoption and demand from different developed and emerging geographical and economical regions of the world. Experts expect the next few years to be a crucial time span for the global market.
Segmentation and Future Trends
Basic segmentation in the hardware encryption market is based on the types of deployment industries, products, applications and geography. All these segments are further sub-segmented based on individual merits of different products, their applications and demand within various geographic regions. As far as industrial verticals are concerned, consumer electronics and military and defense sectors have been dominating the global market. However, innovation in technology has pushed the market further into other businesses across the world. Geographically, the industry is currently being driven by developed regions like North America and Europe. However, experts are anticipating emerging markets of Asia Pacific to take over the current dominants. As far as the revenue is concerned, hardware encryption market is expected to grow at an estimated CAGR of over 67% from 2013 to 2018.
At the estimated CAGR, the industry will jump up to become worth more than $166.67 billion by the end of 2018. Hardware encryption market is currently anticipated to be worth $14.86 billion (end of 2013).