Email Encryption Market

Email Encryption Market Outlook (2024 to 2034)

The global email encryption market is expected to reach a size of US$ 5.1 billion in 2024, as revealed in a recently updated industry report by Fact.MR. Worldwide revenue from email encryption solutions has been forecasted to rise at a CAGR of 14.5% and reach US$ 19.75 billion by the end of 2034.

Ever-increasing data security concerns, growing reliance on cloud-based services, and implementation of stringent privacy regulations are generating substantial demand for email encryption services and solutions. Further, expansion of the healthcare and BFSI (banking, financial services, and insurance) sectors is also widening the application scope of email encryption solutions to ensure data security during email communication.

Constant technological advancement is a key email encryption market trend. Innovations taking place in encryption algorithms, availability of user-friendly encryption tools, and secure key management systems are enhancing the overall security of email communication processes. Moreover, the integration of machine learning and artificial intelligence in these advanced encrypted solutions is becoming one of the prominent trends, offering more robust protection against cyber threats.

Widespread adoption of email encryption solutions in several applications, such as IT, government, healthcare, and finance is due to their features of ensuring the security of sensitive financial data. Moreover, several healthcare organizations are also incorporating these solutions for safeguarding patient information and complying with set regulations against healthcare data protection. A rising preference for end-to-end encryption solutions for secured communication with the integration of advanced cybersecurity tools is contributing to the email encryption market growth.

• Worldwide demand for cloud-based email encryption solutions is evaluated to rise at a CAGR of 13.9% and reach a value of US$ 10.86 billion by the end of 2034.
• East Asia is expected to account for 25% share of the global market by 2034.
• Demand for email encryption services in Japan is projected to increase at a CAGR of 16.2% from 2024 to 2034.

Report Attribute	Detail
Email Encryption Market Size (2024E)	US$ 5.1 Billion
Forecasted Market Value (2034F)	US$ 19.75 Billion
Global Market Growth Rate (2024 to 2034)	14.5% CAGR
Sales of Email Encryption Solutions (2034F)	60%
North America Market Share (2034F)	35%
South Korea Market Growth Rate (2024 to 2034)	16.4% CAGR
Key Companies Profiled	Micro Focus; Fortinet; Broadcom; Zoho; Cisco; Egress Software; Trend Micro; Retarus; SOPHOS; Zivver; Fortra; Mimecast; Proofpoint; Barracuda Networks; HPE; Thales; Entrust.

What is Complementing Email Encryption Market Growth?

“Rising Number of Internet Users and Threats of Cyber Attacks”

Growing demand for email encryption services is owing to the rising adoption of cloud-based services, increased security concerns, and privacy restrictions. More organizations are being targeted by sophisticated cyber-attacks, including BEC schemes and email-based phishing, thereby resulting in a huge financial loss. Adversaries commonly attack business email accounts, further impersonating workers, partners, or customers to get financial benefits in BEC schemes. These benefits include approval of money transfers to the account of hackers, which is stimulating demand for email encryption solutions for improved safety.

Fraudulent techniques, including spear phishing, are rising for stealing data for certain malevolent reasons. Installation of email encryption services and solutions assists in safeguarding email data from such incidences.

What is Acting as a Key Challenge for Companies in the Market?

“High Cost of Email Encryption Solutions”

High cost of establishing email encryption solutions is a prime obstacle businesses face when incorporating these services. These solutions assist individuals and businesses in reducing the risk associated with data loss on email systems.

Budget-conscious SMEs are not actively deploying email encryption solutions not only for their upfront costs but also for recurrent expenditures, such as software maintenance, licensing fees, and technical support. Integration of these solutions with pre-existing systems leads to potential costs and complexity, thus impeding the expansion of the email encryption market size.

How are New Companies Strategizing in This Market?

“Focus on Seamless Cloud Integration Facilities to Ensure Secure Email Communication”

Growing deployment of cloud platforms, such as Google Workspace and Microsoft 365 are emphasizing the requirements for secure email communication. With an emphasis on on-site and remote work, there is a surging demand for email encryption solutions with seamless integration features with conventional on-premise and cloud services. This transition to cloud integration and hybrid models is widening opportunities for new market players.

Country-wise Insights

North America is approximated to capture 35% of the global email encryption market share by the end of 2034, as per the recently updated report offered by analysts at Fact.MR, a market research and competitive intelligence provider. Early acceptance of email encryption solutions along with the presence of several prominent market players, such as Fortra, Entrust, HPE, Proofpoint, Cisco, and others is contributing to revenue streams in the region.

Why is Adoption of Email Encryption Services Gaining Momentum in the United States?

“Advanced Technological Infrastructure Widening Application Scope for Email Encryption Solutions”

Attribute	United States
Market Value (2024E)	US$ 1.39 Billion
Growth Rate (2024 to 2034)	13.2% CAGR
Projected Value (2034F)	US$ 4.84 Billion

The United States is forecasted to hold 70% share of the market in North America by 2034. The availability of advanced technological infrastructure in the country is contributing to the widening application scope of email encryption services. Implementation of stringent compliance regulations in the country is also opening new doors for providers of email encryption solutions. Several regulations, such as the GDPR (General Data Protection Regulation) and others are compelling businesses to adopt robust infrastructure for data protection, which is generating requirements for email encryption services.

What Makes China a Leading Player in the East Asia Region?

“Rising Adoption of Cloud Technology Boosting Demand for Secure Communication Systems”

Attribute	China
Market Value (2024E)	US$ 548.7 Million
Growth Rate (2024 to 2034)	15.6% CAGR
Projected Value (2034F)	US$ 2.34 Billion

China is analyzed to account for a share of 47.5% of the East Asian market by 2034-end. Increasing adoption of cloud technology in the country is widening the application scope of email encryption solutions for ensuring data security for organizations. These services ensure security not only at the micro but also at the macro level.

What are the Key Reasons for Increased Deployment of Email Encryption Solutions in Japan?

“High Digital Technology Integration and Cybersecurity Concerns”

Attribute	Japan
Market Value (2024E)	US$ 324.3 Million
Growth Rate (2024 to 2034)	16.2% CAGR
Projected Value (2034F)	US$ 1.45 Billion

Japan is evaluated to occupy 29.4% share of the East Asian market by the end of 2034. There has been a noteworthy increase in the integration of digital technologies, such as cloud, machine learning, artificial intelligence, and others by more organizations and individuals. Thereby, there is a higher preference for advanced and more secure solutions for encrypted and secure communication, which is widening the application scope of email encryption services for the security of metadata, attachments, and text.

Category-wise Insights

As stated in the Fact.MR report, the BFSI industry holds a noteworthy share of the global market with the rising issues related to security. Owing to the confidential and sensitive data that firms in the BFSI sector deal with, certain stringent security regulations are imposed, which is escalating demand for email encryption solutions for secure interaction.

What is the Scope for Email Encryption Solutions?

“Preference for Email Encryption Solutions to Fortify Email Communications Against Cyber Threats”

Attribute	Email Encryption Solutions
Segment Value (2024E)	US$ 3.16 Billion
Growth Rate (2024 to 2034)	14.1% CAGR
Projected Value (2034F)	US$ 11.85 Billion

Email encryption solutions are projected to hold a share of 60% of the global market by 2034-end. These solutions encompass the technology and software, which directly address the security and encryption requirements. This includes key management systems, encryption algorithms, and any hardware or software particularly designed for secure email communication providing end-to-end encryption. The efficiency of encryption solutions is pivotal for ensuring compliance with set regulations and safeguarding sensitive information.

Which Email Encryption Deployment Mode is Widely Preferred?

“Growing Preference for Cloud-based Solutions for Flexibility, Scalability, and Ease of Administration”

Attribute	Cloud-based Services
Segment Value (2024E)	US$ 2.96 Billion
Growth Rate (2024 to 2034)	13.9% CAGR
Projected Value (2034F)	US$ 10.86 Billion

Cloud-based or SaaS (Software as a Service) services are projected to contribute 55% of the email encryption market share by the end of 2034. This model provides flexibility, scalability, and ease of implementation, thereby making it more attractive for organizations of different sizes. These cloud-based solutions eliminate requirements for organizations to manage and maintain their infrastructure and minimize operational complexities. In addition, the scalability of cloud-based email encryption solutions ensures that businesses adapt to constantly changing requirements without any need for increased hardware expenditure.

Competitive Landscape

Some of the key players in the email encryption industry are investing heavily in R&D activities for new product launches to improve the efficiency of security solutions. In addition, strategic partnerships, collaborations, mergers, and acquisitions are helping market players expand their reach across geographies.

For instance:

• Cisco Systems, in December 2023, announced its decision to acquire Isovalent to define the prospects of multi-cloud security and networking.
• Proofpoint, on December 19, 2023, announced the completion of Tessain’s acquisition. The latter is one of the prominent users of advanced AI solutions for automatically guarding and detecting changing email threats and accidental data loss.

Fact.MR provides detailed information about the price points of key providers of email encryption solutions positioned across the world, sales growth, production capacity, and speculative technological expansion, in this recently updated market report.

Segmentation of Email Encryption Market Research

• By Type :

  • End-to-end
  • Gateway
  • Boundary
  • Hybrid
  • Client Plugins

• By Component :

  • Solutions
  • Services

• By Deployment Mode :

  • Cloud
  • On-premise

• By Organization Size :

  • Large Enterprises
  • SMEs

• By End-use Vertical :

  • BFSI
  • Government & Defense
  • IT & ITeS
  • Telecommunication
  • Energy & Utilities
  • Manufacturing
  • Retail & e-Commerce
  • Healthcare
  • Others
    • Media & Entertainment
    • Education
    • Travel & Transportation

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East and Africa