Secure File Transfer Market - Global Outlook and Forecast 2020-2025

INDUSTRY INSIGHTS

The global secure file transfer market size to cross USD 3 billion by 2025, growing at a CAGR of 10% during the forecast period. The global market has majorly been affected by the outbreak of the COVID-19 pandemic. The demand for secure file transfer solutions has increased with the increase in remote working. Organizations in IT, healthcare, BFSI, and education sectors have increased online-based business operations with employees working from home. Hence, the increase in remote working has increased the adoption of secure file transfer solutions, preventing data leakages and information breaches. The adoption rate was high among education institutions during Q1 and Q2 2020 due to the COVID-19 pandemic, resulting in schools and colleges' closure. Moreover, the incorporation of new technologies such as big data and IoT is expected to drive secure file transfer solutions.

SNIPPETS

• The increased deployment of cloud-based services and enterprises' digitalization is expected to emerge as strong factors for the secure file transfer market.
• BFSI, legal, retail, media, and entertainment end-users are likely to contribute maximum revenue towards hybrid or cloud-based secure file transfer solutions.
• An increase in risk compliances is likely to drive the adoption of secure file transfer solutions during the forecast period.
• The US market is projected to reach $1.33 billion by 2025 on account of the growing cyber-attacks, especially in the financial and healthcare sectors.

GLOBAL SECURE FILE TRANSFER MARKET SEGMENTATION

This research report includes a detailed segmentation by:

• Deployment Model
• Enterprises
• End-user
• Geography

INSIGHTS BY DEPLOYMENT MODEL

The hybrid deployment model market is expected to reach $1.26 billion by 2025. The increasing use of SaaS applications in the enterprise environment is likely to make hybrid solutions easily integrated and quickly deployable. The shift from on-premises service providers to hybrid services is a major driver, contributing to the growth of hybrid solutions. A high level of compliance and security is another key factor responsible for the growth of the segment.

Fast deployment, limited capital investment, and low operational expenditure drive the demand for cloud-based solutions. As cloud-based services enable businesses to transfer documents within hours after their deployment, the demand is growing steadily. These solutions will continue to grow during the forecast period as they witness enhancements in terms of security and compliance.

The growing maturity of cloud-based services and the increased adoption of cloud-based communication and collaboration platforms by enterprises are likely to impact the revenue of on-premises solutions. However, increased controls over business processes and the necessity to manage and integrate secure file transfer services with existing applications for business purposes are likely to drive the demand for on-premises solutions.

INSIGHTS BY ENTERPRISES

The increase in data volumes prompts small and medium enterprises (SME) to adopt secure file transfer protocols with added security and integration features. Secure file services are likely to continue their dominance due to the growth of SMEs operating in the retail, logistics, entertainment, real estate, and IT sectors. SMEs are likely to grow higher than large enterprises because of IT's growth through integrated communication and collaboration platforms at reduced operational expenditure. Government regulations and data privacy laws are expected to play a vital role in deploying file-sharing services in SMEs during the forecast period. 

Digitalization drives large-scale cloud-based communication and collaboration service providers to shift to cloud-managed file transfer solutions by integrating on-premises solutions with cloud platforms. However, the dependency on on-premises solutions is also high among large enterprises due to added controls over the file transfer process. The outbreak of the COVID-19 pandemic had a strong impact on market growth during Q1 and Q2 2020, as the file transfer adoption rate grew among large enterprises on account of remote working. Also, enterprises, which earlier used on-premise solutions, have migrated to hybrid solutions that enable the transfer of documents over the internet with enhanced security.

INSIGHTS BY END-USER

Healthcare, BFSI, legal services, retail, media, and entertainment end-users are likely to emerge as the major contributors to the market by 2025. The increased operational expenditure and initiatives toward the green environment are aiding the secure file transfer market's growth. The automation of secure file transfer solutions aids in improving efficiency and supporting HIPAA regulatory requirements.  On average, around 40% of information leaked in the healthcare sector is via employee mishandling of information. Hence, these solutions are likely to prevent information leakages and breaches, which is expected to increase the demand in the healthcare sector.

Adherence to evolving regulatory compliances among BFSI organizations is constantly improving the security of Personal Identifiable Information (PII) with additional features. Incorporation of secure file transfer solutions would reduce operational costs by 50% and increase efficiency. Moreover, the growing data and financial transactions by users worldwide have increased the demand for secure FTP servers is increasing.

INSIGHTS BY GEOGRAPHY

North America comprises several Fortune 500 organizations, which operate across the US and Canada and require secure platforms for collaborations. Several SMEs are signing up for cloud-based and hybrid secure file transfer solutions due to security restrictions, increased business data processing needs, mobility enablement, and compliance requirements. The market is growing due to the increase in cloud-based communication and collaboration platforms. Large enterprises in the region are the major contributors to the growth of secure file transfer solutions. Large enterprises are likely to migrate to hybrid solution providers in the next five years. The financial and healthcare industries are the major contributors to the adoption of secure and compliant solutions.

INSIGHTS BY VENDORS

The increased focus to improve security, compliance, integration, and ease of use increases the demand for foolproof secure file transfer systems. Most vendors provide HIPPA, SOX, PCI DSS, and GDPR compliant solutions in the market. Vendors are aiming to enhance the security of solutions due to the rise in cyber intrusions. The global secure file transfer market is highly competitive because of vendors such as Microsoft, Google, IBM, and Citrix. However, other pure-play and content management providers have also strengthened their market presence in the last few years.

The secure file transfer market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Deployment Model

• On-premises
• Cloud-based
• Hybrid

Enterprises

• Small and Medium
• Large

End-users

• Banking, Financial Services and Insurance (BFSI)
• Healthcare
• Legal
• Retail, Media, and Entertainment
• Manufacturing, Transportation, and Logistics
• Educational
• Government
• Others

Geography

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
• APAC
  • China
  • Japan
  • Australia
• Rest of the World
  • Brazil
  • UAE