Digital Vault Market Size, Share, and Industry Report [2031]

Report Description

The global digital vault market size was valued at around USD 642.36 Million in 2022 and is projected to reach USD 754.24 Million by 2031, expanding at a CAGR of around 1.8% during the forecast period, 2023 to 2031. The growth of the market is attributed to the increasing adoption of digital vaults in various organizations to protect sensitive data from theft.

The number of instant messages, emails, video files, image files, and other types of data has grown tremendously in recent years. Sensitive data is spread across the internet and out of sight, which poses a risk of cyber theft and other types of cybercrimes such as malware campaigns, phishing, web-skimming, and others. Such cybercrimes can pose threats to individual, national, or even international security. Digital vaults work as safety deposit boxes to keep crucial information and data secure and safe.

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A digital vault is defined as a secure online platform to gather, maintain, and keep safe any digital information and sensitive data to share with trusted individuals. A digital vault is a tool used to protect all digital assets and information. Digital vaults are deemed highly secure to store all the sensitive information and data in them. The sensitive data and information can range from banking details to online login information, videos & photos, and others. These digital vaults keep the information and data safe from any physical and cyber threats.

Digital vaults offer several benefits such as long-term repositories, secured networks regardless of the network topology, and others. Companies and enterprises can store large sensitive data such as enterprise credentials, access control policies, audit information, and others, due to the flexible capacity of digital vaults. These vaults are digital or over the internet, which makes them safe from any physical catastrophes such as hurricanes, storms, fires, and others. Such natural disasters can wreck data in physical form; however, the digital data saved in digital vaults cannot be harmed by such calamities. Easy to use, reliability, protection from harmful situations, and high security are some of the features of digital vaults making them a popular option for storing and securing sensitive data.

COVID-19 Impact on Digital Vault Market

The COVID-19 pandemic situation propelled the adoption of the usage and adoption of digital technologies such as digital vault solutions across the globe. The pandemic resulted in worldwide lockdown, social distancing, travel restrictions, remote working, and other regulations. It accelerated the adoption of digital technologies in various sectors such as BFSI, IT & telecommunications, and others. Several enterprises adopted digital vault solutions to implement advanced security norms during the pandemic.

The pandemic restrictions drove consumers to adopt digital payments regularly. It increased the risk of cybercrimes such as malware campaigns, phishing, web-skimming, and others. The pandemic situation affected the global digital vault market positively, owing to the increased usage of digital vault solutions for maintaining privacy storage and preventing fraud.

Digital Vault Market Dynamics

The market research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The digital vault market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2023 to 2031.

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Major Trends

On-cloud digital vault solutions are one of the current market trends
Increasing internet penetration and rapid digitization facilitate the wide adoption of on-cloud or cloud-based digital vault solutions across the globe. Cloud-based digital vault solutions provide flexibility and cost benefits to users. Increasing usage of on-cloud digital vaults is expected to drive the digital vault market in the coming years.

Key Drivers

Rising awareness regarding digital vaults boosts the global digital vault market
Digital vaults efficiently store, manage, organize, and share important and sensitive information. These vaults aid in protecting sensitive data. Digital vaults offer features such as cost-effectiveness, scalability, and reliability. Growing awareness regarding the beneficial features of digital vaults fuels the digital vault market.

Supporting government initiatives drives the global vault digital market

Governments across the globe are trying to empower their citizens digitally. Wide adoption of digital vaults facilitates governments to reduce administrative overheads, curtail fraud and forgery, minimize handling of physical documents, and access data at any time and from any place. These factors are estimated to spur the digital vault market during the forecast period.

Existing Challenges

High costs associated with digital vaults hinder the digital vault market growth
Adopting and implementing digital vault solutions are expected to be more expensive than other cybersecurity solutions. Skilled professionals are needed to implement these solutions, which can be expensive. These high costs associated with digital vaults are anticipated to restrain the digital vault market in the coming years.

Lack of awareness regarding digital vaults in underdeveloped countries hamper the digital vault market growth

Lack of internet penetrations and lack of availability of advanced technology in underdeveloped countries leads to the lack of awareness regarding digital vaults in those countries. This factor restrains the digital vault market.

Emerging Opportunities

Continuous research & development activities offer growth opportunities to key market players 
The growing demand for technological advancement and research & development activities offer lucrative growth opportunities to market players across the globe.

Scope of Digital Vault Market Report

The report on the global digital vault market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Digital Vault Market Segment Insights

Services segment expands rapidly

On the basis of components, the digital vault market is bifurcated into solutions and services. The services segment is further divided into design & implementation, consulting, managed services, support & maintenance, and others. The services segment is projected to register a significant CAGR during the forecast period, due to increasing demand for digital vault services such as consulting services that aid organizations in understanding their need for digital vault solutions and implementing those solutions.

Consulting services are used for in-depth product descriptions, architecture designs, post-production support, solution implementations, and others. Such services aid clients to achieve their strategic goals. Consulting services provide risk management, alignment of program objectives, business goals transformation programs, and others that drive the services segment growth.

On-cloud segment to hold a key market share

Based on deployment, the digital vault market is divided into on-cloud and on-premise. The on-cloud segment is expected to register significant growth during the forecast period, as on-cloud digital vaults aid consumers in storing information on vendor servers to access them remotely. Digital vaults stored on the cloud are accessible at any time and from anywhere. Such vaults are cost-effective, as they do not require software and hardware integration. The on-cloud digital vaults tackle the growing number of data breaches, which is one of the main factors boosting the digital vault market.

Small & medium organizations segment registers a rapid growth

In terms of organization sizes, the digital vault market is segregated into small & medium organizations and large organizations. The small & medium organizations segment is expected to drive the digital vault market during the forecast period, due to the increasing demand for digital vault solutions in small & medium organizations across the globe. These organizations use digital vault solutions to store and keep company information and documents from cyber-attacks.

BFSI holds a significant market share

On the basis of end-users, the digital vault market is divided into IT & telecommunication, BFSI, retail, power & utilities, government, aerospace & defense, healthcare, real estate, and others. The BFSI segment is projected to grow rapidly during the forecast period, due to the increasing adoption of digital vaults in the financial sector for securing highly sensitive financial data.

The increasing incursion of automation in the banking sector, growing demand for effective data management, rapid digitization of the BFSI sector, and rising regulations & security requirements spur the BFSI segment growth.

The healthcare sector is anticipated to expand in the coming years, as an increasing number of doctors and healthcare administrators are storing patient-related sensitive information in digital vaults such as consent forms and other important documents. The healthcare sector uses digital vault solutions for recording, storing, developing, and retrieving sensitive patient information. This is a key factor boosting the healthcare segment growth.

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North America to dominate the market

In terms of regions, the digital vault market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America is expected to register a high CAGR during the forecast period, owing to the presence of developed economies such as the US and Canada in the region. Increasing demand for digital vault solutions in these developed countries for storing vital data, securing consumer and enterprise information, carrying out research & development activities, and others boost the digital vault market in North America.

Increased government policies, norms, and support enable a boost in the demand for digital technology solutions across the region. The prevalence of strong IT infrastructure in North America fuels the digital vault market growth in the region.

The market in Asia Pacific is anticipated to expand during the forecast period, due to increasing investment in encrypted security solutions in the region. A growing number of enterprises are adopting digital vault solutions to protect data from cyber threats in the region. These are the key points boosting the digital vault market in Asia Pacific.

The market in Europe is estimated to witness growth in the coming years, due to increasing demand for a secured repository to store crucial information for a long time. Growing digitization in the region aids in the expansion of the market in Europe.

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