Database Encryption Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Type of Encryption (Transparent Encryption, Column-level Encryption, Application-level Encryption), By Database Type (Relational Databases, NoSQL Databases) By End-Use Industry (Financial Services, Retail, IT and Telecom, Aerospace and Defense, Hospitals and Healthcare, Food and Beverage Industry), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.97 Billion
CAGR (2026-2031)	26.96%
Fastest Growing Segment	NoSQL Databases
Largest Market	North America
Market Size (2031)	USD 12.44 Billion

Market Overview

The Global Database Encryption Market will grow from USD 2.97 Billion in 2025 to USD 12.44 Billion by 2031 at a 26.96% CAGR. The Global Database Encryption Market comprises security solutions that convert sensitive information within databases into unreadable ciphertext to restrict access solely to authorized personnel possessing decryption keys. Major drivers supporting growth include the strict adherence to international privacy mandates and the rapid shift of corporate infrastructure to cloud environments which demands rigorous security controls. Additionally, the intensifying threat landscape necessitates stronger defensive measures to protect sensitive records from unauthorized exposure. According to ISACA, in 2024, 55 percent of surveyed cybersecurity professionals reported an increase in cyberattacks, indicating a pressing need for robust data protection strategies.

A significant challenge impeding market expansion is the performance latency and administrative complexity often associated with cryptographic processes. Encrypting data requires substantial processing power which can slow down database response times and hinder operational efficiency. This friction forces businesses to weigh security benefits against potential system degradation, particularly within legacy environments where integrating modern encryption standards remains a difficult technical endeavor.

Key Market Drivers

The escalating frequency and sophistication of cyberattacks act as a primary catalyst for the adoption of database encryption. As malicious actors utilize advanced techniques to breach perimeter defenses, organizations are compelled to encrypt data at rest and in transit to render it useless if exfiltrated. This defensive posture is critical as the volume of compromises reaches unprecedented levels, requiring security teams to assume that boundaries will eventually be penetrated. According to the Identity Theft Resource Center, January 2024, in the '2023 Annual Data Breach Report', the number of data compromises in the United States increased by 78 percent compared to the previous year. Consequently, enterprises are prioritizing encryption to sever the link between unauthorized access and data legibility.

Simultaneously, stringent regulatory compliance and data protection mandates are forcing companies to integrate cryptographic protocols within their storage architecture. International standards such as GDPR and frameworks like HIPAA impose severe penalties for negligence, making encryption a baseline requirement for avoiding litigation. This pressure is intensified by the difficulty organizations face in maintaining continuous adherence to evolving rules. According to Thales, March 2024, in the '2024 Data Threat Report', 43 percent of surveyed enterprises reported failing a compliance audit within the previous twelve months. Furthermore, the financial stakes of inadequate protection are rising universally. According to IBM, in 2024, the global average cost of a data breach reached USD 4.88 million, driving executive boards to authorize investments in database encryption technologies.

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Key Market Challenges

Performance latency and administrative complexity constitute a substantial barrier to the broader adoption of database encryption. The cryptographic processes required to secure data demand significant computational resources, which inevitably introduces latency into system operations. For organizations relying on real-time transaction processing or those operating within older legacy infrastructures, even minor delays can disrupt critical workflows and degrade the end-user experience. This friction forces decision-makers to view encryption not just as a security asset but as a potential bottleneck, leading to hesitation in deploying full-scale protection across corporate databases.

Furthermore, the intricate management of encryption keys and policies creates a heavy administrative burden that strains organizational resources. Integrating modern security protocols often necessitates navigating a fragmented ecosystem of disparate software, which complicates maintenance and compliance. According to the Cloud Security Alliance, in 2025, 54 percent of organizations utilized four or more distinct tools to manage data security risks, resulting in fragmented visibility and significant operational inefficiencies. This tool sprawl increases the technical overhead and cost of ownership, effectively discouraging businesses from investing in comprehensive encryption solutions and hampering overall market growth.

Key Market Trends

The integration of Quantum-Resistant Cryptographic Algorithms is prioritizing the deployment of post-quantum cryptography (PQC) to protect long-term data against "harvest now, decrypt later" attacks. This shift addresses the imminent threat of quantum computers breaking traditional encryption standards, compelling companies to enhance cryptographic agility for the seamless adoption of lattice-based protocols. Organizations are proactively updating their security posture to ensure database records remain invulnerable to future decryption capabilities, treating this upgrade as a critical defensive measure rather than a compliance tick-box. According to Entrust, October 2024, in the '2024 PKI and Post-Quantum Trends Study', 61 percent of global respondents plan to migrate to post-quantum cryptography within the next five years, underscoring the urgency of this technological evolution.

Simultaneously, the Adoption of Bring Your Own Key (BYOK) Models for Cloud Sovereignty is accelerating as enterprises demand independent control over their encryption keys. This model prevents cloud providers from accessing sensitive data, thereby satisfying stringent data residency and sovereignty mandates that require strict separation between data holding and key custody. By decoupling key management from data storage, organizations can better navigate the security complexities of multi-cloud environments and maintain trust in third-party infrastructure. According to Thales, June 2024, in the '2024 Cloud Security Study', 56 percent of professionals identified secrets management as the top challenge in cloud development, highlighting the critical market need for these autonomous key management solutions.

Segmental Insights

The NoSQL Databases segment currently represents the fastest-growing category within the global database encryption market. This rapid expansion is primarily driven by the increasing organizational shift toward handling vast volumes of unstructured data and the widespread adoption of cloud-native architectures. As enterprises utilize these flexible storage models for sensitive information, the requirement to implement encryption for risk mitigation has intensified. Furthermore, strict adherence to compliance mandates from frameworks such as the General Data Protection Regulation necessitates comprehensive security measures across non-relational platforms to ensure data privacy and prevent unauthorized access.

Regional Insights

North America maintains a dominant position in the global database encryption market due to the extensive adoption of cloud-based infrastructure and the strong presence of major security vendors. This leadership is sustained by rigorous regulatory compliance requirements that compel enterprises to secure sensitive information. Specifically, adherence to frameworks like the Health Insurance Portability and Accountability Act and the California Consumer Privacy Act drives the continuous demand for encryption solutions. Consequently, organizations across the region prioritize these security measures to prevent data breaches and ensure regulatory alignment.

Recent Developments

• In March 2025, MongoDB enhanced the security capabilities of its developer data platform by introducing customer-managed keys (CMKs) over private networking. This development allowed organizations to manage their encryption keys without exposing their key management service to the public internet, addressing a critical need for enterprises with strict compliance requirements. By enabling this feature within MongoDB Atlas, the company strengthened its position in the Global Database Encryption Market, offering users greater control and flexibility over their data lifecycle. This advancement ensured that sensitive information remained protected while satisfying complex regulatory standards for data privacy and security.
• In November 2024, Baffle announced a significant expansion of its data protection platform to support pgvector on PostgreSQL, effectively bringing its Real Queryable Encryption capability to vector databases. This strategic product launch addressed the growing security challenges associated with Generative AI applications, ensuring that sensitive data embeddings remained encrypted during similarity search operations. By eliminating the need for application code changes, Baffle provided a seamless solution for protecting data in use, a vital requirement in the Global Database Encryption Market. This innovation allowed organizations to leverage the power of AI and vector search while maintaining strict data confidentiality and compliance.
• In August 2024, Fortanix expanded its data security offerings by adding file system encryption to its Data Security Manager platform. This new feature was designed to address the limitations of native encryption in popular databases, such as the community editions of NoSQL systems, which often lack transparent data encryption. By enabling encryption at the file system layer, Fortanix provided a unified solution that secured data across applications, databases, and storage. This development underscored the company's commitment to the Global Database Encryption Market, offering enterprises a granular and scalable approach to protecting sensitive information against unauthorized access and potential breaches.
• In April 2024, Vaultree achieved a major milestone by integrating its Data-In-Use Encryption technology with Google Cloud BigQuery. This collaboration enabled organizations to process and analyze massive datasets within their cloud data warehouses while keeping the data persistently encrypted. By leveraging fully homomorphic encryption techniques, the solution allowed for real-time data processing without the need for decryption, thereby significantly reducing the risk of exposure during analytics workflows. This breakthrough was highly relevant to the Global Database Encryption Market, as it provided a method for enterprises to utilize their data for business intelligence without compromising on security or performance.

Key Market Players

• IBM Corporation
• Symantec Corporation
• Intel Security
• Intel Corporation
• Microsoft Corporation
• Oracle Corporation
• Netapp, Inc
• Hewlett-Packard Enterprise
• Vormetric
• Gemalto

By Database Type	By End-Use Industry	By Region
Relational Databases NoSQL Databases	Financial Services Retail IT and Telecom Aerospace and Defense Hospitals and Healthcare Food and Beverage Industry	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Database Encryption Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Database Encryption Market, By Database Type:

• Relational Databases
• NoSQL Databases

• Database Encryption Market, By End-Use Industry:

• Financial Services
• Retail
• IT and Telecom
• Aerospace and Defense
• Hospitals and Healthcare
• Food and Beverage Industry

• Database Encryption Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE