Strong encryption will be key in supporting Internet-mediated markets in Asia-Pacific worth $800 billion, according to a new study by Analysys Mason.
In Asia-Pacific and globally, a safe and secure Internet is critical in driving economic and social transformation, and strong encryption is essential to achieving that safety and security, driving the trust required for consumers and firms who do business online.
The study quantifies the size and growth of five major service categories which rely heavily on strong encryption (e-commerce, the Internet of Things, corporate WANs, public cloud services and business process outsourcing) in 11 countries in the Asia-Pacific region (Australia, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand and Vietnam).
Revenues for these services are expected to double over the next five years, exceeding $800 billion by 2020 in the focus countries, said David Abecassis, partner at Analysys Mason.
“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,” he said. “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.”
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 organizations.
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 says.
The report, “How strong encryption supports the development of a safe and secure Internet: an Asia–Pacific perspective”, can be viewed here.