Encryption as a Service Market Growth, Size, Trends, Analysisand Segment Forecast to 2034
Global Encryption as a Service Market Growth, Size, Trends Analysis - By Component, By Deployment Mode, By Enterprise Size, By Application, By End User - Regional Outlook, Competitive Strategies and Segment Forecast to 2034
| Published: Sep-2025 | Report ID: IACT25170 | Pages: 1 - 244 | Formats*: |
| Category : Information & Communications Technology | |||
Encryption as a Service Market Introduction and Overview
According to SPER Market Research, the Global Encryption as a Service Market is estimated to reach USD 17.9 billion by 2034 with a CAGR of 24.95%.
The report includes an in-depth analysis of the Global Encryption as a Service Market, including market size and trends, product mix, Applications, and supplier analysis. The global market for encryption as a service was valued at approximately USD 1.93 billion in 2024 and is projected to expand at a compound annual growth rate (CAGR) of 24.95% from 2025 to 2034. This growth is primarily fueled by the rising demand for scalable, cloud-native encryption solutions that facilitate secure data exchange, ensure regulatory compliance, and implement zero-trust security across diverse digital ecosystems. Organizations in various sectors, including BFSI, IT & telecom, healthcare, and manufacturing, are increasingly opting for modular EaaS platforms instead of traditional encryption toolkits to achieve agile deployment, flexible pricing, and real-time scalability.
By Component Insights
In the global encryption as a service (EaaS) market in 2024, the solutions category generated the highest revenue.This growth is mainly due to the rising demand from businesses for zero trust encryption platforms. These platforms offer better visibility, centralized policy enforcement, and secure key management in hybrid and multi-cloud settings. Organizations are focusing on EaaS solutions to manage risks linked to unmanaged secrets and unsecured code. They want features like authenticated code signing and dynamic key management, alongside improved security. The growing trend of integrated compliance dashboards and encryption governance tools is also supporting market expansion.
By Deployment Mode Insights
The private sector has the biggest EaaS market share in 2024. Businesses like private-cloud solutions because they offer greater control over compliance and data governance. In order to comply with stringent restrictions, maintain essential cryptographic keys locally, and reduce dependency on outside suppliers, they are concentrating on private settings. Businesses are investing in encryption technologies that provide secure key management and network-layer restrictions due to the necessity of cross-region data protection.
The public segment of the EaaS market is growing rapidly as businesses migrate to public cloud platforms and require scalable encryption solutions. The emergence of cloud-native applications that require seamless encryption across many environments and the growing popularity of Bring Your Own Key (BYOK) and Have Your Own Key (HYOK) models to maintain key control when utilising public cloud services are two major growth drivers.
By Enterprise Size Insights
Large enterprises dominated the EaaS market in 2024, especially in sectors like banking, healthcare, and public administration. They are utilising EaaS platforms to standardise key management and enforce encryption regulations on a broad scale. A rising trend is using client-side file encryption tools that secure data no matter where it is stored or shared. Meanwhile, the Small and Medium Enterprises (SMEs) segment is expected to see the fastest growth due to the shift to cloud-native architectures and varying regulatory demands. SMEs are increasingly using managed encryption services to meet compliance needs amid limited in-house cybersecurity resources.
By Application Insights
The data encryption segment held the largest market share in EaaS as organizations push for data-centric security. They are using client-side and end-to-end encryption to control data exchanges securely. Standards-based techniques like Trusted Data Format (TDF) are also becoming common, allowing encryption to integrate smoothly with tools like Microsoft Outlook and Google Workspace. The cloud encryption segment is anticipated to grow quickly, driven by a need for scalable services that work with public cloud platforms. Companies are implementing methods such as BYOK and Customer Managed Key (CMK) to preserve control when using cloud services.
By End-User Insights
Due to stringent regulatory requirements and the sensitive nature of financial data, the banking, financial services, and insurance (BFSI) segment held the greatest share of the EaaS market in 2024. Financial institutions are investing in centralized key management and real-time data encryption to safeguard their services and adhere to evolving regulations. The sector is also seeing more integration of EaaS with AI fraud detection and secure APIs while preparing for future security challenges with post-quantum cryptography. The growth of digital finance and embedded lending is increasing the demand for scalable encryption that protects customer data across different platforms.
Regional Insights
The North American Encryption as a Service market had the largest share in 2024, owing to advancements such as the adoption of zero trust security frameworks in both the federal and commercial sectors, as well as strict enforcement of data protection laws such as the California Consumer Privacy Act. Furthermore, the transfer of public sector workloads to FedRAMP-compliant cloud infrastructures has increased demand for encryption services that include sophisticated key lifecycle management, policy-based access controls, and compliance-ready settings.
Market Competitive Landscape
Leading companies in the Encryption as a Service (EaaS) space include CipherCloud, Inc., Broadcom Inc., AxCrypt AB, and Amazon Web Services, Inc. To gain a competitive edge over their rivals, these businesses are engaging in a number of strategic efforts, including agreement-making, partnership and collaboration formation, and product development. In November 2024, Fortanix entered the U.S. public sector by partnering with Carahsoft to make its post-quantum encryption and Confidential Computing technologies available to federal agencies under SEWP V and NASPO ValuePoint contracts.
Recent Developments:
June 2024: Arqit Quantum Inc., a prominent entity in quantum-safe encryption, announced the introduction of an encryption intelligence service designed to help organizations identify network risks and formulate mitigation strategies to strengthen their security posture against both current and emerging cybersecurity threats.
In November 2024, Thales upgraded its CipherTrust Data Security Platform to a cloud-based, as-a-service subscription model, providing CipherTrust Cloud Key Management as a Service (CCKM), which includes flexible data security, encryption, and key management solutions.
Scope of the report:
| Report Metric | Details |
| Market size available for years | 2021-2034 |
| Base year considered | 2024 |
| Forecast period | 2025-2034 |
| Segments covered | By Component, By Deployment Mode, By Enterprise Size, By Application, By End User |
| Regions covered | North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa |
| Companies Covered | Amazon Web Services, Inc, AxCrypt AB, Broadcom Inc, CipherCloud, Inc, Entrust Corporation, Fortanix Inc, Google LLC, Hewlett Packard Enterprise Development LP, IBM Corporation, McAfee, LLC. |
Key Topics Covered in the Report
- Global Encryption as a Service Market Size (FY’2021-FY’2034)
- Overview of Global Encryption as a Service Market
- Segmentation of Global Encryption as a Service Market By Component (Solutions, Services)
- Segmentation of Global Encryption as a Service Market By Deployment Mode (Public, Private, Hybrid)
- Segmentation of Global Encryption as a Service Market By Enterprise Size (Large Enterprises, Small and Medium Enterprises)
- Segmentation of Global Encryption as a Service Market By Application (Email Encryption, Disk Encryption, Network Traffic Encryption, Cloud Encryption, Data Encryption)
- Segmentation of Global Encryption as a Service Market By End User (IT and Telecom, BFSI, Healthcare, Retail and E-commerce, Manufacturing, Education, Government and Public Sector, Others)
- Statistical Snap of Global Encryption as a Service Market
- Expansion Analysis of Global Encryption as a Service Market
- Problems and Obstacles in Global Encryption as a Service Market
- Competitive Landscape in the Global Encryption as a Service Market
- Details on Current Investment in Global Encryption as a Service Market
- Competitive Analysis of Global Encryption as a Service Market
- Prominent Players in the Global Encryption as a Service Market
- SWOT Analysis of Global Encryption as a Service Market
- Global Encryption as a Service Market Future Outlook and Projections (FY’2025-FY’2034)
1.Introduction
1.1.Scope of the report1.2.Market segment analysis
2.Research Methodology
2.1.Research data source2.1.1.Secondary Data2.1.2.Primary Data2.1.3.SPERs internal database2.1.4.Premium insight from KOLs2.2.Market size estimation2.2.1.Top-down and Bottom-up approach2.3.Data triangulation
3.Executive Summary
4.Market Dynamics
4.1.Driver, Restraint, Opportunity and Challenges analysis
4.1.1.Drivers4.1.2.Restraints4.1.3.Opportunities4.1.4.Challenges
5.Market variable and outlook
5.1.SWOT Analysis5.1.1.Strengths5.1.2.Weaknesses5.1.3.Opportunities5.1.4.Threats5.2.PESTEL Analysis5.2.1.Political Landscape5.2.2.Economic Landscape5.2.3.Social Landscape5.2.4.Technological Landscape5.2.5.Environmental Landscape5.2.6.Legal Landscape5.3.PORTERs Five Forces5.3.1.Bargaining power of suppliers5.3.2.Bargaining power of buyers5.3.3.Threat of Substitute5.3.4.Threat of new entrant5.3.5.Competitive rivalry5.4.Heat Map Analysis
6.Competitive Landscape
6.1.Global Encryption as a Service Market Manufacturing Base Distribution, Sales Area, Product Type6.2.Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in Global Encryption as a Service Market
7.Global Encryption as a Service Market, By Component (USD Million) 2021-2034
7.1.Solutions7.2.Services7.2.1.Professional Services7.2.2.Managed Services
8.Global Encryption as a Service Market, By Deployment Mode (USD Million) 2021-2034
8.1.Public8.2.Private8.3.Hybrid
9.Global Encryption as a Service Market, By Enterprise Size (USD Million) 2021-2034
9.1.Large Enterprises9.2.Small and Medium Enterprises (SMEs)
10.Global Encryption as a Service Market, By Application (USD Million) 2021-2034
10.1.Email Encryption10.2.Disk Encryption10.3.Network Traffic Encryption10.4.Cloud Encryption10.5.Data Encryption
11.Global Encryption as a Service Market, By End User (USD Million) 2021-2034
11.1.IT and Telecom11.2.BFSI11.3.Healthcare11.4.Retail and E-commerce11.5.Manufacturing11.6.Education11.7.Government and Public Sector11.8.Others
12.Global Encryption as a Service Market, (USD Million) 2021-2034
12.1.Global Encryption as a Service Market Size and Market Share
13.Global Encryption as a Service Market, By Region, (USD Million) 2021-2034
13.1.Asia-Pacific13.1.1.Australia13.1.2.China13.1.3.India13.1.4.Japan13.1.5.South Korea13.1.6.Rest of Asia-Pacific13.2.Europe13.2.1.France13.2.2.Germany13.2.3.Italy13.2.4.Spain13.2.5.United Kingdom13.2.6.Rest of Europe13.3.Middle East and Africa13.3.1.Kingdom of Saudi Arabia13.3.2.United Arab Emirates13.3.3.Qatar13.3.4.South Africa13.3.5.Egypt13.3.6.Morocco13.3.7.Nigeria13.3.8.Rest of Middle-East and Africa13.4.North America13.4.1.Canada13.4.2.Mexico13.4.3.United States13.5.Latin America13.5.1.Argentina13.5.2.Brazil13.5.3.Rest of Latin America
14.Company Profile
14.1.Amazon Web Services, Inc14.1.1.Company details14.1.2.Financial outlook14.1.3.Product summary14.1.4.Recent developments14.2.AxCrypt AB14.2.1.Company details14.2.2.Financial outlook14.2.3.Product summary14.2.4.Recent developments14.3.Broadcom Inc14.3.1.Company details14.3.2.Financial outlook14.3.3.Product summary14.3.4.Recent developments14.4.CipherCloud, Inc14.4.1.Company details14.4.2.Financial outlook14.4.3.Product summary14.4.4.Recent developments14.5.Entrust Corporation14.5.1.Company details14.5.2.Financial outlook14.5.3.Product summary14.5.4.Recent developments14.6.Fortanix Inc14.6.1.Company details14.6.2.Financial outlook14.6.3.Product summary14.6.4.Recent developments14.7.Google LLC14.7.1.Company details14.7.2.Financial outlook14.7.3.Product summary14.7.4.Recent developments14.8.Hewlett Packard Enterprise Development LP14.8.1.Company details14.8.2.Financial outlook14.8.3.Product summary14.8.4.Recent developments14.9.IBM Corporation14.9.1.Company details14.9.2.Financial outlook14.9.3.Product summary14.9.4.Recent developments14.10.McAfee, LLC14.10.1.Company details14.10.2.Financial outlook14.10.3.Product summary14.10.4.Recent developments14.11.Others
15.Conclusion
16.List of Abbreviations
17.Reference Links
SPER Market Research’s methodology uses great emphasis on primary research to ensure that the market intelligence insights are up to date, reliable and accurate. Primary interviews are done with players involved in each phase of a supply chain to analyze the market forecasting. The secondary research method is used to help you fully understand how the future markets and the spending patterns look likes.
The report is based on in-depth qualitative and quantitative analysis of the Product Market. The quantitative analysis involves the application of various projection and sampling techniques. The qualitative analysis involves primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes are validated through experts opinion. Our research methodology entails an ideal mixture of primary and secondary initiatives.
Frequently Asked Questions About This Report
Encryption as a Service Market is projected to reach USD 17.9 by 2034, growing at a CAGR of 24.95 % during the forecast period.
Encryption as a Service Market size from 2025. The Market is expected to reach USD 17.9 by 2034, at a CAGR of 24.95% during the forecast period.
Encryption as a Service Market CAGR of 24.95% during the forecast period.
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Encryption as a Service Market size is USD 17.9 from 2025 to 2034.
Encryption as a Service Market covered By Component, By Deployment Mode, By Enterprise Size, By Application, By End User
The North America is anticipated to have the highest Market share in the Encryption as a Service Market .
"Amazon Web Services, Inc, AxCrypt AB, Broadcom Inc, CipherCloud, Inc, Entrust Corporation, Fortanix Inc, Google LLC, Hewlett Packard Enterprise Development LP, IBM Corporation, McAfee, LLC.
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The report includes an in-depth analysis of the Global Encryption as a Service Market, including market size and trends, product mix, Applications, and supplier analysis"
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