; Database Encryption Market Size, Share, and Analysis 2034

Database Encryption Market

Database Encryption Market Size, Share, and Analysis, By Type (Transparent Encryption, Column-level Encryption, File-system Encryption, Application-Level Encryption, and Key Management), By Deployment (On-Premise and Cloud), By Enterprise Type (Small & Medium Enterprises and Large Enterprises), By Vertical (Retail & E-Commerce, Aerospace & Defense, IT & Telecom, BFSI, Healthcare, Government & Public Sector, and Others),  By Region (North America, Europe, Asia-Pacific, And Rest of the World), And Regional Forecast 2024-2034

Published on: May-2024
Report Code: FG ICT 01977
No. of Pages: 170-350
Report Format: PDF

Database Encryption Market is projected to grow at a compound annual growth rate (CAGR) of 25.6% during the forecast period from 2024 to 2034. Initially valued at USD 1.7 billion in 2023, the market is expected to reach USD 20.4 billion by 2034.

Product Overview

Database encryption is a process of using cryptographic techniques to turn data, which is stored in a database, into an unreadable format. This security measure is essential for preventing unauthorized access to sensitive data during a data breach. In addition, depending on the sensitivity of the data and the security needs, encryption can be performed at different levels within the database environment, such as the individual rows or specific columns. Furthermore, organizations that encrypt their data ensure that without suitable decryption keys, the data is unreadable even when unauthorized parties access the database. This is extremely important for sectors such as healthcare, finance, and government that deal with sensitive or personal data. Thus, database encryption protects data from outside threats and allows companies to adhere to data protection laws.

Market Highlights

Database Encryption Market is expected to exhibit a CAGR of 25.6% during the forecast period, 2024-2034

Database encryption market is anticipated to reach USD 20.4 billion, growing at a CAGR of 25.6% during the forecast period, due to the growing trend of data breaches and cyber threats, which highlight the need for security measures. Organizations handle a large volume of sensitive data, thereby ensuring its security against unauthorized access has become critical. Additionally, to comply with legal obligations, organizations have a responsibility to make use of strict data protection rules across the world. Furthermore, database encryption is becoming increasingly necessary as cloud technologies are being adopted on a larger scale. Thus, database encryption will continue to increase as long as businesses focus on maintaining data integrity and privacy.

Source: Fatpos Global

Database Encryption Market Segmentation

Transparent Data Encryption dominates the market owing to wider adoption and ease of implementation

Database Encryption Market, based on Type is segmented into Transparent Encryption, Column-level Encryption, File-system Encryption, Application-Level Encryption, and Key Management. The transparent data encryption segment holds the largest market share due to its ease of implementation and high adoption by vendors. In addition, transparent data encryption is easier to integrate at the database level and requires very few modifications to the existing setups, which makes their use and management easier. Transparent data encryption encrypts data on the storage layer and ensures minimum impact on database performance. Therefore, it provides strong protection for databases and is expected to dominate shortly.

Large Enterprises are prevalent in database encryption technology due to large data volumes and financial resources

Database Encryption Market is categorized based on Enterprise Type into Small and Medium Enterprise and Large Enterprise. The large organizations segment holds the majority stake due to the massive amounts of sensitive data they manage, such as customer information, financial records, and intellectual property. The need for compliance with data privacy regulations, such as GDPR and HIPAA, also encourages these organizations to implement encryption to avoid severe penalties. Additionally, large enterprises have substantial IT budgets, which allow them to cover the initial setup and ongoing management costs of database encryption. They also have dedicated security teams with the necessary expertise to implement complex security measures.

Market Dynamics

Growth Drivers

Increasing Data Breaches and Cyberattacks Have Resulted in Efficient Encryption Methods

Increase in data breaches and cyberattacks in recent years has been the main factor to influence the database encryption market. Frequent data breaches have raised several security concerns, which call for attention to the security of sensitive data and create awareness among businesses. Moreover, database encryption is becoming an increasingly important defensive tool for businesses as a means of combating fraud practices. In addition, encryption makes data unreadable without the appropriate decryption key, even if accessed by hackers. Thus, compliance with data breach notification requires organizations to report when personal data is compromised, which promotes the adoption of encryption to reduce the impact of potential data breaches.

Growing Regulatory Compliance Needs Have Developed a Strong Encryption Infrastructure

Regulatory compliance and privacy are major growth drivers for the database encryption market. International data privacy laws such as the GDPR in Europe and the CCPA in the U.S. require organizations to protect personal data carefully, where encryption plays an important role. Moreover, in sectors like healthcare and finance, database encryption has been crucial for meeting specific data protection standards. Therefore, by implementing database encryption, organizations can effectively secure sensitive data, which reduces the risk of penalties and highlights the importance of encryption in the modern regulatory ecosystem.

Restraints

Rising Cost of Deployment and Management to Affect Growth Opportunities

High cost of deploying and managing database encryption presents major challenges for smaller organizations with low budgets. Initial deployment costs such as investments in software licenses and professional services, can be challenging due to the complexity of databases. Moreover, integration with existing systems may require further resources to resolve compatibility issues. Therefore, encryption can introduce performance expenses, that require further efforts to improve hardware. These factors make the cost-benefit analysis extremely important as businesses weigh the security benefits against substantial financial investments.

Recent Developments

  • In 2023, IBM Corporation, announced enhancements to its IBM Cloud Hyper Protect Data Security offering, including expanded support for multi-cloud database encryption. This allows for consistent data protection across different cloud environments. The company partnered with a leading cloud provider (specific details might be confidential) to offer a managed database encryption service specifically targeting healthcare organizations.
  • In 2023, Oracle Corporation, introduced Transparent Data Encryption (TDE) for Autonomous Database, a self-managing database service. This simplifies database encryption for users without compromising performance. They have successfully acquired a security software company specializing in data encryption for unstructured data (like documents and emails).
  • In 2023, Microsoft Corporation, launched Azure SQL Database Transparent Data Encryption with key rotation capabilities. This strengthens security by automatically rotating encryption keys at regular intervals. The company has announced its strong plans to integrate its Azure Key Vault service more tightly with other Microsoft database encryption solutions.
  • In 2023, Intel Security (McAfee), released an update to its Database Encryption product that improves performance and reduces resource consumption. This makes it a more attractive option for organizations with large databases.
  • In 2023, Symantec Corporation, partnered with a major cloud storage provider to offer a combined solution for data encryption at rest and in transit. This caters to organizations with hybrid cloud deployments.

Database Encryption Market

Key Players:

  • IBM Corporation
  • Oracle Corporation
  • Microsoft Corporation
  • Intel Security (McAfee)
  • Cisco Systems Inc.
  • Symantec Corporation
  • Trend Micro Inc.
  • Sophos Ltd.
  • Thales e-Security
  • Gemalto
  • Hewlett-Packard Development Company
  • Vormetric Inc.
  • SAS Institute Inc.
  • Check Point Software Technologies Ltd.
  • Dell Technologies Inc.
  • Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Database Encryption Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The North American region dominates the global database encryption market due to its thriving IT and telecommunications industries, which manage large volumes of data. Companies must use encryption to comply with data privacy requirements. Additionally, high internet penetration also promotes the database encryption market for data encryption devices across the North American region.

Similarly, other regions are promptly catching up, with Asia Pacific being labeled as the fastest-growing market region, due to its developing economies, along with increasing cloud usage and awareness of data security risks. Conversely, Europe and other regions, have shown promising market results, but North America still maintains the leading market share. 

Source: Fatpos Global

Impact of Covid-19 on Database Encryption Market

Covid-19 pandemic had a profound impact on the database encryption market. The shift to remote work highlighted the need for robust data security, which promoted the demand for database encryption solutions as employees began accessing sensitive information from diverse locations. Furthermore, the pandemic accelerated the use of cloud computing, which led to a surge in the use of cloud-based encryption solutions. Conversely, the economic downturn caused several companies to postpone investments in fields like cybersecurity. Thus, despite these challenges, the impact of COVID-19 was positive as the market continued to grow in the post-pandemic landscape.

Database Encryption Market is further segmented by region into:

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Database Encryption Market Scope and Segments:

ATTRIBUTE

  DETAILS

Study Period

2018-2034

Base Year

2023

Forecast Period

2024-2034

Historical Period

2019-2022

Growth Rate

CAGR of 25.6% from 2024-2034

Unit

Value (USD Billion)

Segmentation

Main Segments List

By Type

  • Transparent Encryption
  • Column-level Encryption,
  • File-system Encryption,
  • Application-Level Encryption
  • Key Management

By Deployment

  • On-Premise
  • Cloud

By Enterprise

Type

  • Small and Medium Enterprises
  • Large Enterprises

By Vertical

  • Retail and E-Commerce
  • Aerospace and Defense
  • IT and Telecom
  • BFSI
  • Healthcare
  • Government and Public Sector
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions (FAQ):

Database Encryption Market size was valued at USD 1.7 billion in 2023 and is projected to reach the value of USD 20.4 billion in 2034, exhibiting a CAGR of 25.6% during the forecast period.

The Database Encryption Market refers to the sector focused on providing solutions that encrypt data stored in databases to protect it from unauthorized access and ensure compliance with security regulations and standards.

The Transparent Encryption segment and Large Enterprises segment accounted for the largest Database Encryption Market share.

Key players in the Database Encryption Market include IBM Corporation, Oracle Corporation, Microsoft Corporation, Intel Security (McAfee), Cisco Systems Inc., Symantec Corporation, Trend Micro Inc., Sophos Ltd., Thales e-Security, Gemalto, Hewlett-Packard Development Company, Vormetric Inc., SAS Institute Inc., Check Point Software Technologies Ltd., Dell Technologies Inc., and Other Prominent Players.

The Database Encryption Market is driven by increasing data breaches and regulatory compliance demands.

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