Data security has become an important concern for individuals and businesses alike. As data breaches and cyber-attacks continue to increase, encryption has become a critical tool for protecting sensitive information.
In this blog post, we will explore encryption statistics that highlight the importance of encryption in today’s digital landscape.
|Cost of a mega data breach||$401 million|
|Percentage of enterprise respondents with extensive encryption||56%|
|Percentage of companies leaving sensitive files unencrypted||53%|
|Estimated number of passwords that need to be protected||Over 300 billion|
|Percentage of companies with non-expiring passwords||21.43%|
|Average savings from each attack with robust encryption||$1.4 million|
|Percentage of companies with API gateway encryption in place||93%|
|Number of unencrypted data records compromised daily||7 million|
|Days to detect and contain data breach due to poor encryption||287 days|
|Percentage of websites using HTTPS protocol||77.5%|
|Top reason to encrypt customer data||Protect customer data|
|Percentage of organizations that do not know where data is stored||65%|
|Percentage of organizations with a consistent encryption strategy||50%|
|Percentage of respondents that rate encryption key management as painful||56%|
|Percentage of organizations transferring unencrypted sensitive files to the cloud||60%|
Key Encryption Statistics 2023 – MY Choice
- As of 2021, the global encryption market size is estimated to be worth $14.5 billion, and it is expected to grow to $30.09 billion by 2026.
- In a survey conducted by the Pew Research Center in 2021, 72% of Americans said they believe it is more important for the government to investigate potential terrorist threats than to protect the privacy of citizens’ communications.
- According to a study by the Ponemon Institute in 2021, the average cost of a data breach in the United States was $8.64 million, up from $8.19 million in 2019.
- In 2020, the encryption adoption rate for enterprise storage systems was 50%, up from 45% in 2019, according to a survey by the Enterprise Strategy Group.
- In a survey of IT professionals conducted by Thales in 2021, 50% of respondents said their organization had experienced a data breach or failed a compliance audit due to encryption failures in the past year.
- According to a survey by the Cloud Security Alliance in 2021, 64% of IT and security professionals believe that encryption is the most effective way to protect data in the cloud.
- In a study conducted by IBM Security in 2021, 75% of respondents said that their organization had experienced a data breach in the past two years, and 70% said they were using encryption to protect their sensitive data.
- According to a survey by the National Cyber Security Alliance in 2021, 52% of small businesses in the United States use encryption to protect their data.
- In a survey of consumers conducted by Harris Poll in 2021, 71% of respondents said they are more concerned about protecting their personal data than they were a year ago.
- In a study conducted by Echoworx in 2021, 66% of IT decision-makers said that their organization plans to increase spending on encryption technology in the coming year.
- 80% of organizations use encryption for some data and applications. (Gemalto, 2020)
- Global encryption software market size is expected to reach $17.9 billion by 2026. (Fortune Business Insights, 2021)
- The healthcare sector is the top user of encryption, followed by the financial sector. (Gemalto, 2020)
- In 2020, 91% of malware attacks used encryption to hide malicious activity. (Sophos, 2020)
- The most commonly encrypted data is financial information, followed by personal data. (Gemalto, 2020)
- Cost of a mega data breach has grown significantly
- Encryption is the process of converting data into a code to prevent unauthorized access.
- Encryption is used to protect sensitive information such as passwords, financial data, and personal information.
- Encryption can be applied to both data at rest (stored data) and data in transit (data being transmitted).
- Organizations aren’t updating legacy passwords.
- Poor encryption results in lengthy recovery periods after a breach.
- Encryption provides an additional layer of security for sensitive data.
- Encryption can help organizations comply with regulations and data protection laws.
- Encryption can help prevent data breaches and unauthorized access to sensitive information.
- Encryption can increase customer trust and confidence in an organization’s security measures.
- Files transferred to the cloud are often unencrypted
Overview of Encryption
Encryption is the process of converting plain text or data into an unreadable format called ciphertext. The ciphertext can only be deciphered by the intended recipient using a key. Here are some statistics related to encryption:
- The global encryption market size was valued at USD 2.66 billion in 2020 and is expected to grow at a CAGR of 14.5% from 2021 to 2028.
- According to a survey by Thales, 54% of organizations use encryption to protect sensitive data in the cloud.
- The use of encryption has increased from 5% in 2005 to 49% in 2019, according to a survey by the Ponemon Institute.
Encryption in Business
Businesses of all sizes rely on encryption to protect sensitive data. Here are some statistics related to encryption in business:
- The average cost of a data breach in 2021 was USD 4.24 million, according to a study by IBM. Encryption can help reduce the cost of a data breach.
- 90% of healthcare organizations use encryption to protect sensitive patient data, according to a survey by the Ponemon Institute.
- In the financial services sector, encryption is used to protect confidential customer information such as bank account numbers and credit card details.
- According to a survey by the Ponemon Institute, 58% of IT professionals consider encryption to be the most effective way to secure data.
Encryption in Government
Government agencies use encryption to protect classified and sensitive information. Here are some statistics related to encryption in government:
- The US government spends approximately USD 15 billion annually on cybersecurity, according to a report by the Government Accountability Office (GAO).
- The US National Security Agency (NSA) uses encryption to protect its classified information.
- The US Department of Defense requires all its contractors to use encryption to protect sensitive information.
Types of Encryption
There are different types of encryption techniques used today. Here are some statistics related to different types of encryption:
- The most commonly used encryption algorithm is Advanced Encryption Standard (AES), which is used by 86% of organizations, according to a survey by the Ponemon Institute.
- Public Key Infrastructure (PKI) is a popular encryption technique that uses a public key and a private key. According to a survey by Venafi, 74% of organizations use PKI for encryption.
- Cloud encryption is becoming increasingly popular as more organizations move their data to the cloud.
- The use of encryption in IoT devices is expected to grow significantly in the coming years.
- The adoption of quantum-resistant encryption is expected to increase as quantum computing becomes more prevalent.
- Large organizations are more likely to use encryption than small businesses due to the cost and complexity of implementation. (Gemalto, 2020)
- The adoption of encryption is higher in developed countries than in developing countries. (Gemalto, 2020)
- The use of encryption is more common in the financial and healthcare sectors than in other industries. (Gemalto, 2020)
Encryption Market Analysis
- North America is the largest market for encryption software, followed by Europe and Asia-Pacific. (Fortune Business Insights, 2021)
- The encryption software market is highly competitive, with vendors such as IBM, Symantec, and Microsoft dominating the market. (Fortune Business Insights, 2021)
- The demand for encryption software is expected to increase due to the growing need for data security and compliance with regulations. (Fortune Business Insights, 2021)
- Men are more likely to use encryption than women. (Gemalto, 2020)
- Younger individuals are more likely to use encryption than older individuals. (Gemalto, 2020)
- The use of encryption is more common among individuals with higher levels of education. (Gemalto, 2020)
- The most commonly used encryption algorithms are Advanced Encryption Standard (AES) and RSA. (Gemalto, 2020)
- Encryption software can be open-source or commercial, with commercial software typically offering more features and support. (Techopedia, 2021)
- Popular encryption software vendors include VeraCrypt, BitLocker, and FileVault. (Techopedia, 2021)