Encryption as a Service Market Surges to $5.98 billion by 2030 - Dominated by AWS (US), Cisco (US), HashiCorp (US), Google (US)

Delray Beach, FL, Nov. 18, 2025 (GLOBE NEWSWIRE) -- According to MarketsandMarkets™, the global Encryption as a Service Market size is projected to grow from USD 1.57 billion in 2024 to USD 5.98 billion by 2030 at a Compound Annual Growth Rate (CAGR) of 24.9% during the forecast period.

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Encryption as a Service Market Dynamics

Drivers

Increase in cloud adoption
Need for compliance with data protection regulations

Restraints

Limited control over data
Downtime in data accessing and processing

Opportunities

Rise in IoT and BYoD adoption
Rising demand for integrated data protection solutions among SMEs

List of Top Companies in Encryption as a Service Market

AWS (US)
Cisco (US)
HashiCorp (US)
Google (US)
Box (US)
IBM (US)
Microsoft (US)
Utimaco (Germany)
CLAI PAYMENTS (US)
Retarus (Germany)

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The rising concerns over critical data loss and increasing demand for integrated data protection solutions among SMEs are the main drivers in the encryption as a service market. As cyber threats become more complex, SMEs are becoming more aware of their vulnerabilities, especially when it comes to sensitive data. These businesses prioritize encryption solutions as a means of protection against possible breaches, which can lead to reputational damage and regulatory penalties. SMEs are a soft target for most of the cybercriminals hence, now the importance of implementing high-level security measures in their organizations is growing among SMEs. The driving force for this is the partial or full shift into cloud service provision where integrated data protection solutions are scalable, flexible, and more efficient when it comes to compliance. As a result, the adoption of EaaS among SMEs is accelerating because of the need for effective and comprehensive data security strategies in an increasingly complex digital environment, which fosters growth in this market segment.

Trend: Integrating encryption as a service with technologies such as AI and ML

The integration of EaaS and AI/ML is revolutionizing data security. The encryption process becomes much more adaptive, efficient, and context-aware with AI-driven solutions analyzing vast amounts of data in real time for optimizing encryption algorithms based on emerging threats and user behavior patterns. ML-based models enhance security by detecting anomalies in data access or encryption requests, thus enabling prompt responses to breaches. In key management, AI automatically handles and generates safe encryption keys needed in complex cloud environments. Homomorphic encryption also allows calculations on encrypted data without decrypting them to serve privacy-preserving analytics while promoting the analysis of sensitive verticals, such as in healthcare. AI-based encryption evolves with evolving threats and the dynamic change of security measures concerning new attack patterns. Hence, the integration of EaaS with AI and ML could strengthen data security and streamline the operations of organizations as well.

By the organization size segment, the small and medium-sized enterprises segment is expected to grow at the highest CAGR during the forecast period.

The segment of small and medium-sized enterprises (SMEs) is growing as the fastest rate in the encryption as a service market due to the increasing recognition of the critical need to protect sensitive data among SMEs against rising cyber threats. As such businesses adopt cloud-based solutions, the scalable and cost-effective encryption technologies enhance their data security posture without creating a significant financial burden. The COVID-19 pandemic has increased these vulnerabilities because cybercriminals have exploited the shift to remote work environments; therefore, there is an urgent need for robust security measures. SMEs increasingly look for advanced encryption solutions, which not only ensure regulatory compliance but also fortify their fraud and identity theft defenses. SMEs' need for reliable and cost-effective means to protect their digital assets while tackling an increasingly complex threat landscape will drive significant growth in the encryption as a service market.

By service type, data encryption as a service segment is estimated to have the second largest market share during the global forecast.

The data encryption as a service segment has the second largest share in the encryption as a service market as it serves to protect all the sensitive data in any given industry. It covers the ever-growing demand for the use of more secured encryption tools which are necessary in securing both resting and traveling data to keep with strict compliance measures like GDPR, HIPAA, and PCI DSS. With the increased usage of cloud-based infrastructures, the risk of cyberattacks and unauthorized access increases. Data encryption services are, therefore, very much in demand to ensure the security of cloud environments. Such services are of extreme importance to healthcare, banking, retail, and government sectors while protecting sensitive data about customers and the organization.

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Opportunity: Rise of IoT and BYOD adoption

The growth in IoT and the increasing adoption of BYOD policies will create immense growth opportunities for the encryption as a service market. The more organizations incorporate IoT devices into their operations, the greater the data security concerns they will have, especially on privacy and protection. BYOD policies add to the complexity of securing corporate networks since personal devices usually do not have standardized security measures. Increasing fragmentation calls for strong encryption solutions that will protect sensitive data both in transit and at rest, reducing the risks of data breaches and unauthorized access. Businesses embracing BYOD need to have advanced encryption strategies that will ensure compliance with security protocols while managing the smooth flow of data across platforms.

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