ECB versus CBC: What is Future of COVID-19 Contact Tracing Apps?

As India is fighting the ongoing COVID-19 (coronavirus) pandemic, companies in the application-level encryption market are competing to develop secure contact-tracing and syndromic mapping apps. Since the Aarogya Setu app in India is under scrutiny for data theft, IT companies are increasing efforts to develop secure COVID-19 mobile contact tracing apps. They are opting for AES/CBC encryption over AES/ECB to store application data.

IT companies in the application-level encryption market are taking cues from the U.S. Government to comply with the Advanced Encryption Standard (AES). Since AES is used in government and military purposes, Indian IT companies can use this standard to develop secure COVID-19 mobile contact tracing apps. As such, cipher block chaining (CBC) is being preferred over electronic codebook (ECB) encryption to safely collect and store information. Companies are running several security tests to improve and validate the security of COVID-19 mobile contact tracing apps.

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Application Encryption Replaces Full-disk Hard Drive Encryption Software

Since full-disk hard drive encryption software is often cumbersome to deploy and lack important security certifications, companies in the application-level encryption market are capitalizing on this growth opportunity. For instance, Texas-based information technology (IT) company Futurex is increasing the availability of full-service cryptographic functionality, which involves general-purpose data encryption and key management technology into applications. The growing need to secure sensitive data has fueled the demand for application-level encryption.

The application-level encryption market is projected to surpass the revenue of US$ 8 Bn by 2030. IT companies are increasing efforts to combine application encryption with other cryptographic techniques and use cases such as Point-to-Point Encryption (P2PE). They are increasing efforts to abide by the international standards of security compliance to stay relevant in the industry. As such, financial institutes and healthcare industries are creating incremental opportunities for IT companies.

eHealth Apps Fuel Demand for Application-level Encryption in Healthcare

Data security with the cloud is becoming increasingly important for healthcare industries. The growing influx of eHealth applications has triggered the demand for application-level encryption software. As such, cloud is emerging as the most convenient way to secure health data. The encryption technology is being used with pseudonymisation and anonymisation to achieve data security. Application-level encryption is being highly recommended in the healthcare landscape, since each individual record is encrypted with its own key. This is evident as application-level encryption market is estimated to grow at an explosive CAGR of 25% during the assessment period.

Application-level encryption has facilitated security of sensitive chats between doctor and patients that take place via eHealth apps. Companies in the application-level encryption market are increasing their R&D to develop software that encrypts the message before it is sent to the network and can only be decrypted by the receiver.

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Blowfish & Triple DES Grow Popular in Banking and Financial Applications

Costly maintenance and complexity of application-level encryption are emerging as a drawback for software providers. However, in mandatory requirement from a third-party regulator or compliance team, IT companies are extending their systems for implementing application-level encryption for large enterprise clients. Thus, companies are focusing on clients that mandatorily require application-level encryption to establish stable revenue streams in the market.

Apart from AES, encryption algorithms such as triple DES (Data Encryption Standard) algorithm, blowfish, and twofish are growing popular in the application-level encryption market. Triple DES is increasingly replacing conventional DES algorithms. Though triple DES is slowly phasing out, it serves as a dependable hardware encryption solution in the financial and banking sector. On the other hand, even blowfish is serving as an alternative to traditional DES algorithms, where the former helps to encrypt messages individually. 

Greater Control over Decryption Facilitates Improved Data Management

Application-layer cryptography is a growing trend in the defense and government end-use cases. As such, end-to-end encryption is being highly publicized as an efficient form of application-layer cryptography, which allows organizations to enforce access control using key management. End-to-end encryption is being used to reduce the impact and cost of data breach.

There is a need to move operations, security, and testing into the development process in order to improve software agility and reliability. Companies in the application-level encryption market are adopting security-best practices as a part of the application development. However, most developers are not security or cryptography experts, which ultimately results in lesser control over the security posture of IT and development. Thus, companies in the application-level encryption market must facilitate greater control over the messages for developers by providing them with the keys for decryption.

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Web-enabled Portals Deploy Remote Management of Cryptic Messages

Remote management of cryptic messages is one of the key growth drivers, which is contributing toward the expansion of the application-level encryption market. High level of remote access functionality via application encryption platforms is being made possible with web-management portals. Administrators can efficiently manage their cryptographic infrastructure while on-the-go with the comfort of home and even road travel. Application-level encryption has fueled to demand for web-enabled devices to deploy virtual management of cryptic information.

Web-enabled portals help to perform key management and deploy custom reports in various formats. Companies in the application-level encryption market are tapping value-grab opportunities in the development of web-enabled devices such as portable, touchscreen-based configuration, and key management tablets that help to remotely configure the key management enterprise servers (KMES). Simple touchscreen-based interface in web portals help in rapid configuration of cryptic messages.

Analysts’ Viewpoint

Most COVID-19 mobile contact tracing apps are under scrutiny for maintaining security of data. Hence, companies in the application-level encryption market are opting for end-to-end encryption and innovative encryption algorithms, such as blowfish and triple DES to tackle data security issues. Since web application data is usually stored in database servers, it is susceptible to attacks by hackers. Hence, IT companies should educate developers and teams to encrypt data before feeding it in the server to avoid issues of data theft. As such, companies are increasing efforts to understand the combination of techniques to develop eHealth applications, since healthcare industries are fueling the demand for application-level encryption systems.

Application-level Encryption Market: Overview

  • The global application-level encryption market was valued at US$ 718.5 Mn in 2019 and is expected to expand at a CAGR of 25% from 2020 to 2030, reaching US$ 8 Mn by the end of the forecast period
  • According to the report, the global application-level encryption market will continue to be influenced by a range of macroeconomic and industry-specific factors. Asia Pacific will be at the forefront of global demand, with the application-level encryption market in the region expected to grow at a higher rate during the forecast period.
  • All hardware-based security businesses are affected by the increasing lockdown situation due to the COVID-19. Hence, the demand for cloud-based application-level encryption solutions is likely to increase with the adoption of the work-from-home model across all technical companies.

Increasing Adoption of Encryption Software to Avoid Cyber Attacks and Internal Data Breaches Driving Application-level Encryption Market

  • Companies are adopting digitization in different business processes that helps to increase efficiency. Most companies are investing in encryption technology to provide security to confidential information and increase productivity. The application-level encryption market is majorly driven by the increasing adoption of encryption technologies among small & medium enterprises to avoid internal data breaches within an enterprise.
  • Providers of data encryption are integrating and providing advanced application-level encryption solutions that help to encrypt data before the read and write process on the server. New data stored on the server is in an encrypted format, so it is difficult to breach data security to decrypt it without authorized permission. Application-level encryption solutions help in improving data accuracy in encrypted digital form, minimizes operational cost, and simplifies different data-related operational processes. Thus, the increasing adoption of encryption software to avoid cyber attacks and internal data breaches has led to a rise in demand for application-level encryption solutions.

Application-level Encryption: Market Segmentation

  • The report offers detailed segmentation of the application-level encryption market based on deployment, enterprise size, and end user. In terms of deployment, on-premises held a higher share in 2019, contributing the highest revenue to the application-level encryption market. Cloud-based segment is estimated to rise at a significant CAGR during the forecast period 2020 to 2030.
  • Based on enterprise size, the application-level encryption market is segmented into small & medium enterprises and large enterprises. Based on end user, the BFSI sector was the topmost revenue generating segment, which contributed majority of the global revenue in the application-level encryption market. On the other hand, the IT & telecom sector is predicted to rise during the forecast period.
  • The retail & e-Commerce sector is expected to contribute significantly to the overall application-level encryption market due to the increasing impact of COVID-19 on the e-Commerce industry

Application-level Encryption Market: Competition Dynamics

  • The global application-level encryption market comprises large as well as mid-sized companies. The vendors in the application-level encryption market are currently focusing on introducing advanced software and integrating new capabilities within the software to enable application-level encryption across company boundaries, and meet the need to manage data encryption and data security.
  • Moreover, solution providers are adopting partnerships and acquisition strategies to proficiently compete in the regional market
  • Some of the significant players in the global application-level encryption market include
    • Baffle, Inc.
    • Blue Star Limited
    • Chino Srls
    • Dell, Inc.
    • F5 Networks, Inc.
    • Futurex
    • IBM Corporation
    • McAfee LLC
    • Micro Focus International plc
    • Microsoft Corporation
    • nCipher Security
    • LLC, NetLib
    • Security, Inc.
    • PKWARE, Inc.
    • Prime Factors
    • Sophos Group plc
    • Symantec Corporation
    • Thales e-Security, Inc.
    • Unbound Tech Ltd.

Application-level Encryption Market Scope of the Report

A latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global application-level encryption market, to accurately gauge its potential future development. The study presents detailed information about the important growth factors, restraints, and key trends that are creating the landscape for the future growth of the application-level encryption market, to identify the opportunistic avenues of the business potential for stakeholders. The report also provides insightful information about how the application-level encryption market will progress during the forecast period 2020-2030.

The report offers intricate dynamics about the different aspects of the application-level encryption market that aids companies operating in the market in making strategic development decisions. TMR’s study also elaborates on the significant changes that are highly anticipated to configure the growth of the application-level encryption market during the forecast period. It also includes a key indicator assessment to highlight the growth prospects of the application-level encryption market, and estimate statistics related to the market progress in terms of value (US$ Mn).

The study covers a detailed segmentation of the application-level encryption market, along with key information and a competitive outlook. The report mentions the company profiles of key players that are currently dominating the application-level encryption market, wherein various developments, expansions, and winning strategies practiced and executed by leading players have been presented in detail.

Key Questions Answered in TMR’s Report on Application-level Encryption Market

The report provides detailed information about the application-level encryption market on the basis of comprehensive research on various factors that play a key role in accelerating the growth potential of the market. Information mentioned in the report answers path-breaking questions for companies that are currently functioning in the market and are looking for innovative ways to create a unique benchmark in the application-level encryption industry, so as to help them make successful strategies and take target-driven decisions.

  • How are key market players successfully earning revenue out of the advantages of application-level encryption?
  • What are the various trends in the global application-level encryption market across the world and key market opportunities?
  • What will be the revenue share of the global application-level encryption market in terms of different deployment?
  • What will be the Y-o-Y growth of the application-level encryption market between 2020 and 2030?
  • What are the competitive strategies of key players operating in Brazil, the U.S., and the global market?
  • Which end-use industry is expected to generate maximum revenue in application-level encryption during the forecast period?

Research Methodology Application-level Encryption Market

The research methodology adopted by analysts for combining the application-level encryption market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the industry-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the application-level encryption market.

During the primary research phase, analysts interviewed industry stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. On the basis of data obtained through the interviews of genuine resources, analysts have emphasized the changing scenario of the application-level encryption market.
For secondary research, analysts scrutinized numerous annual report publications, white papers, industry association publications, and company websites to obtain the necessary understanding of the application-level encryption market.

Application-level Encryption Market Segmentation

TMR’s research study assesses the application-level encryption market on the basis of deployment, enterprise size, end user, and region. Based on deployment, the global application-level encryption market has been categorized into on-premise and cloud. Based on enterprise size, the market has been segmented into small & medium enterprises and large enterprises. In terms of end user, the global application-level encryption market segment has been classified into BFSI, IT & telecom, government, healthcare, retail & e-Commerce, media & entertainment, manufacturing, transportation & logistics, energy & utility, and others (education, hospitality, etc.). Revenue data is estimated for all the abovementioned segments.

Deployment

  • On-premise
  • Cloud

Enterprise Size

  • Small & Medium Enterprises
  • Large Enterprises

End User

  • BFSI
  • IT & Telecom
  • Government
  • Healthcare
  • Retail & e-Commerce
  • Media & Entertainment
  • Manufacturing
  • Transportation & Logistics
  • Energy & Utility
  • Others (Education, Hospitality, etc.)

Region

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • Europe
    •  U.K.
    •  Germany
    •  France
    •  Rest of Europe
  • Asia Pacific
    •  Japan
    • China
    •  India
    •  Australia
    •  Rest of Asia Pacific
  • Middle East & Africa
    •  UAE
    • Saudi Arabia
    • South Africa
    • Rest of Middle East & Africa
  • South America
    •  Brazil
    •  Rest of South America

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Application Level Encryption Market

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