The Global Market for Hardware Encryption is Projected to Reach US$252 Billion by 2020

Focus On Data Leakage Prevention in the Internet Era Drives the Global Hardware Encryption Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Hardware Encryption market. The global market for Hardware Encryption is projected to reach US$252 billion by 2020, driven by the strong emphasis on protecting information assets in a data driven world.

In the modern data driven world, information is like any other corporate asset that has financial value. Digital information has emerged into one of the most expensive and valuable asset for any company, accounting for over 50% of the total value of businesses, exceeding the cost of IT hardware and software resources. The business impact in the event of a breach in information confidentiality, integrity or availability can be immense for companies. Among the various risks to data integrity such as, hardware failure, human error, software corruption, computer viruses, theft, hardware destruction, the most prominent is the threat of data leakage. The rise of new IT concepts such as network sharing, virtualization, use of removable hardware devices & applications, increased use of emails and other converged communication tools, Bring Your Own Device (BYOD) and Choose Your Own Device (CYOD), are contributing towards the increased risk of data leakage, by opening up new vector points for leakages of secure data. Undisciplined employees account for over 80% of information leaks in a company, while 20% comes from malicious intent. Data leakages can deny opportunities for companies and compromise competitiveness in the market by allowing sensitive data to fall into the wrong hands.

The scenario is benefiting interest in encryption technologies as the most effective and simplified form of data protection against unauthorized access. With hackers getting smarter and data protection laws getting stringent, encryption is emerging as a key data management technology. Key benefits of hardware encryption driving its adoption include the ability to meet data residency and privacy needs, secure de-provision of cloud services without the risk of residual data being left behind on cloud service provider systems, and achieve information flexibility and agility. The growth in the market is also expected to come from the strong growth in cloud server shipments in line with the escalating demand for cloud services, especially storage services. 

One of the major challenges impeding adoption of cloud computing is the concern over data security, privacy and transparency. Growing levels of competition in the public cloud computing services market is additionally exerting pressure on cloud service providers (CSPs) to offer customers additional security from data threats and theft. CSPs are therefore increasingly investing in hardware encrypted cloud storage servers to ensure protection of “data at rest”. The exploding growth of enterprise class cloud hosting and public cloud computing services and the ensuing investments in cloud equipment by CSPs is therefore positively benefiting hardware encryption of cloud storage and server equipment. Other major factors driving growth in the market include the rise of Internet of Things (IoT) and Industrial 4.0, and the ensuing need to protect sensitive user data stored on the device. Hardware encryption for IoT devices provides a virtually impenetrable vault for sensitive data.

As stated by the new market research report on Hardware Encryption, Asia-Pacific represents the largest market worldwide. The region also ranks as the fastest growing market with a CAGR of 55.1% over the analysis period, led by factors such as strong economic growth, boom in the enterprise market and the ensuing development in IT infrastructure, and large scale outsourcing of BPO/KPO operations to countries such as China, India and Malaysia.

Major players in the market include Atmel Corporation, Bluefin Payment Systems, Broadcom, CardConnect LLC, Cavium, Cryptography Research Inc., Futurex, Harris, IBM, Imation Corporation, Ingenico Group, Kanguru Solutions, Kingston Technology Corporation, Koolspan Inc., Maxim Integrated Products Inc., Merlincryption LLC, Micron Technology, Samsung Electronics Co. Ltd., Seagate Technology PLC, Thales e-Security Inc., Utimaco, Viasat Inc., Winmagic Inc., and Worldline, among others.

The research report titled “Hardware Encryption: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections in US$ Million for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific, Latin America, and Rest of World.  

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