Encryption Statistics, Trends And Facts 2023

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.

Statistic	Value
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%

Encryption Stats

1. 80% of organizations use encryption for some data and applications. (Gemalto, 2020)
2. Global encryption software market size is expected to reach $17.9 billion by 2026. (Fortune Business Insights, 2021)
3. The healthcare sector is the top user of encryption, followed by the financial sector. (Gemalto, 2020)
4. In 2020, 91% of malware attacks used encryption to hide malicious activity. (Sophos, 2020)
5. The most commonly encrypted data is financial information, followed by personal data. (Gemalto, 2020)

• Cost of a mega data breach has grown significantly

Facts

1. Encryption is the process of converting data into a code to prevent unauthorized access.
2. Encryption is used to protect sensitive information such as passwords, financial data, and personal information.
3. 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.

• Businesses with consistent encryption strategies highest in 16 years.

Benefits

1. Encryption provides an additional layer of security for sensitive data.
2. Encryption can help organizations comply with regulations and data protection laws.
3. Encryption can help prevent data breaches and unauthorized access to sensitive information.
4. 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:

1. 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.
2. According to a survey by Thales, 54% of organizations use encryption to protect sensitive data in the cloud.
3. 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:

4. 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.
5. 90% of healthcare organizations use encryption to protect sensitive patient data, according to a survey by the Ponemon Institute.
6. In the financial services sector, encryption is used to protect confidential customer information such as bank account numbers and credit card details.
7. 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:

8. The US government spends approximately USD 15 billion annually on cybersecurity, according to a report by the Government Accountability Office (GAO).
9. The US National Security Agency (NSA) uses encryption to protect its classified information.
10. 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:

11. 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.
12. 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.

Encryption Trends

1. Cloud encryption is becoming increasingly popular as more organizations move their data to the cloud.
2. The use of encryption in IoT devices is expected to grow significantly in the coming years.
3. The adoption of quantum-resistant encryption is expected to increase as quantum computing becomes more prevalent.

Encryption Adoption

1. Large organizations are more likely to use encryption than small businesses due to the cost and complexity of implementation. (Gemalto, 2020)
2. The adoption of encryption is higher in developed countries than in developing countries. (Gemalto, 2020)
3. The use of encryption is more common in the financial and healthcare sectors than in other industries. (Gemalto, 2020)

Encryption Market Analysis

1. North America is the largest market for encryption software, followed by Europe and Asia-Pacific. (Fortune Business Insights, 2021)
2. The encryption software market is highly competitive, with vendors such as IBM, Symantec, and Microsoft dominating the market. (Fortune Business Insights, 2021)
3. 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)

Encryption Demographics

1. Men are more likely to use encryption than women. (Gemalto, 2020)
2. Younger individuals are more likely to use encryption than older individuals. (Gemalto, 2020)
3. The use of encryption is more common among individuals with higher levels of education. (Gemalto, 2020)

Encryption Software

1. The most commonly used encryption algorithms are Advanced Encryption Standard (AES) and RSA. (Gemalto, 2020)
2. Encryption software can be open-source or commercial, with commercial software typically offering more features and support. (Techopedia, 2021)
3. Popular encryption software vendors include VeraCrypt, BitLocker, and FileVault. (Techopedia, 2021)