The global e-mail encryption market is projected to grow at a CAGR of over 18% during the forecast period. The email encryption market has grown significantly in the past few years owing to the growing email scam which is generally faced by many small and medium-size business organizations.

Many businesses have been hit by various cyber-attacks, which include, email-based phishing and BEC (Business Email Compromise) scams that have led to significant financial losses. In BEC, the attacker targets corporate email accounts, spoofing employees and customers for financial profits, thus resulting in the growing demand for email encryption tools.

In addition to this, the concern for data security and privacy regulation and demand for cloud-based services is also boosting the growth of the global email market. Another driver that is responsible for the growth of this market is fraudulent activities, such as stealing data and spear-phishing for malicious purposes. According to the Federal Bureau of Investigation (FBI), phishing was the most common type of cybercrime in 2020, and phishing incidents nearly doubled in frequency, from 114,702 incidents in 2019 to 241,324 incidents in 2020. 96% of phishing attacks arrive by email.

Impact of COVID-19 Pandemic on Global Email Encryption Market

The internet is playing an important role during the COVID-19 times. Every segment is affected by the COVID-19 pandemic. Due to the COVID-19 pandemic, the dependency on doing business online is highly increased. Many sectors such as banking, financial services, automotive transportation, IT & telecom are providing online services to their customers. In many sectors, the government has also endorsed the use of teleworking and maintain social distance. 

Considering all these points, the best practice to business in this pandemic, email became the Business continuity plan for the majority of industries. And by the widespread use of emails on mobiles and computer systems, the risk of email fraud and scams has also increased during the pandemic time. To avoid this, companies are using email encryption for email security as email encryption protects its resources from many cyber-attacks and protects confidential data stored on multiple email servers. 

Segmental Outlook

The global email encryption market is segmented on the basis of deployment type and end-users. Based on deployment type, the market is segmented into on-premise email encryption and cloud-based email encryption. Among these, the cloud-based segment is expected at the highest CAGR during the forecast period. This is due to the flexibility of the system and it does not require any physical entity for the storage. Apart from this, the market is also segmented into end-user category including BFSI, healthcare, government & defense, IT & Telecom, and others.

BFSI Segment to Hold a Lucrative Share in the Email Encryption Market

BFSI majorly deals in large and confidential data, as the banking and financial sector holds most vital information of the customer such as transaction details, bank account details. The companies in this sector are now demanding sustainable solutions for encryption.  BFSI industry is the most regulated ones and it needs to deal with many security requirements, due to the confidential data that the BFSI sector deals with. BFSI industry also deals with government mandates such as PEPEDA (Protection and Electronic Documents Act) and FFIEC (Federal Financial institutions Examination Council) and it has to maintain certain standards which include PCI and SOX, these standards are required to ensure the protection of data and emails from phishing, malware, and other email and cyber-attacks.

Regional Outlook

The global email encryption market is geographically segmented into North America (the US and Canada), Europe (Germany, Spain, Italy, France, the UK, and the Rest of Europe), Asia-Pacific (India, China, Japan, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East and Africa, and Latin America). North America is estimated to have the highest share in the global email encryption market. The regional growth of the market is attributed to the fact that the region has the highest number of vendors for this market.  

Asia-Pacific is projected to Grow at a Considerable Rate During the Forecast Period

Asia-Pacific is projected to exhibit considerable growth in the global email encryption market as major countries in the region are developing and need technological advancement to become developed nations. India and China are rapidly moving in the field of IT and data analytics and these many companies in this region are seeking cloud deployment of security solutions. The rapid growth of IT and data analytics in the region has also increased the threat of cyber-attacks, phishing, and, BEC scams, which can put the organizations' data at risk. Email encryption methods could save these organizations from fraud and financial loss. Further, the vendors in the region are also increasing and many esteemed organizations are also getting inclined towards the security of data, thus opting for email encryption solutions.

Market Players Outlook

Some of the prominent players operating in the global email encryption market include Cisco Systems Inc., ProofPoint Inc., Trend Micro Inc., Micro Focus International Plc, Echoworx Corp., and others. These key manufacturers are adopting various strategies such as new product launches and approvals, mergers and acquisitions, partnerships and collaborations, and many others in order to thrive in a competitive environment. For instance, in April 2021, Echoworx announced the introduction of biometric authentication to its Echoworx Email Encryption platform, enabling secure passwordless authentication options. By leveraging biometrics, along with their growing list of seven authentication options, Echoworx enables enterprises to access encrypted communications in seconds, without the need for registration, questions, or passwords.

The Report Covers

• Market value data analysis of 2019 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global email encryption market. Based on the availability of data, information related to products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying who-stands-where in the market.