A new study, published by Analysys Mason in November 2016, examines the importance of strong encryption in 11 countries in the Asia–Pacific region: Australia, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand and Vietnam.
In India, as in the rest of Asia–Pacific and of the World, a safe and secure Internet is critical in driving economic and social transformation. The Government is driving digital transformation through initiatives like Digital India and Smart Cities which will bring hundreds of millions of Indian online. Strong encryption is essential to making the experience of existing and new Internet users in India a safe and secure one, driving the trust required for consumers and firms who do business online.
The study quantifies the size and growth of five major service categories (e-commerce, the Internet of Things, corporate WANs, public cloud services and business process outsourcing). We find that revenues for these services, which rely heavily on strong encryption, are expected to triple in India over the next five years to over USD200 billion by 2020, and double to USD800 billion overall in the 11 focus countries.
David Abecassis, Partner at Analysys Mason, said: “Our new research provides a perspective on the size of the markets that rely on strong encryption for the trust of their users and their future growth. The success of e-commerce and of BPO/KPO in India has been tremendous, and in the coming years the same success can be replicated for Cloud Services and the Internet of Things, working towards secure Indian Smart Cities. This is predicated on firms and consumer trusting that their data and transactions are well-protected, in particular through encryption. Beyond the commercial opportunity for service providers, this huge value forms an important part of the perspective policy makers should take in considering their stance towards encryption.”
Rama Vedashree, CEO, Data Security Council of India (DSCI) who was present at the launch of the report in India, said “Rising cyberattacks and hacks are posing serious business and reputation risks to enterprises across the world. With the digital transformation businesses are undergoing, it is imperative for them to protect critical information assets to remain competitive. India continues to be a preferred global hub for IT outsourcing, owing to strong data protection practices. Encryption technologies are enabling organizations to mitigate risks and also aid compliance to confidentiality requirements. Business and Technology decision makers need to make informed decisions to develop a robust framework for the enterprise. Reports such as Analysis Mason’s presenting a snapshot at a regional level and outlining industry perspectives on business value of encryption, are useful to facilitate meaningful dialogue on the subject.”
Governments and policy makers play an important role in promoting, using and, in some cases, regulating the use of strong encryption. As the report shows, countries at the forefront of the digital economy (e.g. Australia and Singapore) are encouraging the use of strong encryption across the board, within public- and private-sector organisations.
Continued growth in all sectors of the digital economy requires people, firms and governments to continue investing in digital security supported by strong encryption. In this context, policy makers should consider the extent to which policy, laws and regulations are compatible with the requirements of the people and businesses who use encryption.
The study, available for free at http://report.analysysmason.com/strong_encryption_asia/, relies on a comprehensive review of the situation in the 11 focus countries, including government policy and relevant legislation, as well as interviews with stakeholders across the region.