Global End-to-end Email Encryption Market Competition Analysis by Key Players

7 min read

Updated on 11/22/2024

In 2022, the top three players in the end-to-end email encryption market accounted for 45.73% of the market share, while all other competitors accounted for 54.27% in total. This shows that the top three players in the market have a greater influence and dominance in the end-to-end email encryption market. Despite this, more than half of the market share is still occupied by other competitors, showing that the market is competitive and fragmented. This distribution means that although the market leader is obvious, new entrants or smaller companies still have the opportunity to gain market share by providing differentiated products or services.

2. Global End-to-end Email Encryption Market Mergers & Acquisitions, Expansion

‘Cloud security firm Boxcryptor sells assets to Dropbox December 6, 2022’

Dropbox announced that it has agreed to purchase key assets of Boxcryptor, a Germany-based cloud security company, for undisclosed terms, according to TechCrunch.

The acquisition is part of Dropbox’s goal of providing end-to-end encryption to enterprise users. Businesses value end-to-end encryption because it ensures that confidential documents that they store in the cloud cannot be accessed by intermediaries. Currently, Dropbox’s security system provides encryption for files moving between its servers and the files destination, but the company is still technically able to view all content in-transit.

‘Proofpoint Signs Definitive Agreement to Acquire Tessian October 30, 2023’

Proofpoint Inc., a leading cybersecurity and compliance company, today announced it has entered into a definitive agreement to acquire Tessian, a leader in the use of advanced AI to automatically detect and guard against both accidental data loss and evolving email threats. The acquisition is expected to close in late 2023 to early 2024, subject to customary closing conditions, including any required regulatory approvals.

Proofpoint protects organizations against social engineering attacks by applying award-winning AI and large language models (LLMs) to block threats and provide real-time threat insights. AI-based detection has proven to be notably effective in identifying threats targeting people, such as email fraud and supplier-based attacks, and preventing data loss due to negligent or malicious actions. With the acquisition of Tessian, Proofpoint will enhance its threat and information protection platforms by adding powerful layers of AI-powered defense that address risky user behaviors, including misdirected email and data exfiltration.

3. Proofpoint End-to-end Email Encryption Market Analysis

3.1 Proofpoint Business Overview

Eric Hahn, former CTO of Netscape, founded the company in 2002. It has since grown to more than 3,600 employees serving over 8,000 enterprises worldwide. The company went public in 2012. In 2020 it generated more than $1 billion in revenue, making it the first SaaS-based cybersecurity and compliance company to meet that milestone.

In 2021 Proofpoint was acquired by Thoma Bravo, a leading private equity software investing firm, in a transaction that valued Proofpoint at $12.3 billion. This is the largest go-private software deal in history.

Today, Proofpoint is headquartered in Sunnyvale, California. Proofpoint has additional offices in Australia, Canada, France, Germany, Israel, Japan, Netherlands, Singapore, United Kingdom, and the United States (California, Colorado, Indiana, Massachusetts, Pennsylvania, Texas, Utah).

3.2 End-to-end Email Encryption Product Profiles, Application and Specification

Table End-to-end Email Encryption Product Profiles, Application and Specification

Email Encryption

Traditional encrypted email services can be challenging for users. With Proofpoint Email Encryption, messages and attachments are automatically protected with complete transparency. Users don’t need to manually encrypt their email to send and receive messages securely—it just happens in the background. Email Encryption simplifies secure communications and leaves you in control. FEATURE Simplified Policy Management All email encryption policies are centrally managed and enforced at the gateway. A convenient graphical interface helps you define encryption policies, which can be triggered by messages containing regulated information or intellectual property. No-Touch Key Management Email Encryption eliminates the administrative overhead of key management. As keys are generated, they are securely stored, managed and made highly available through our cloud-based infrastructure. Administrators can even allow end users to revoke, expire, or restore access to encrypted email messages. Integrated Information Protection Email Encryption makes the most of your existing investments in our Email and Information Protection solutions. The products share more than 80 template-based policies—including PCI, HIPAA, PII and more—across email and files on network shares and SharePoint sites. Custom policies can extend to both data in motion and at rest, all encrypted and protecting your emails.

3.3 Proofpoint End-to-end Email Encryption Market Performance

Proofpoint’s market value has almost doubled from $156.78 million in 2018 to $390.16 million in 2023. At the same time, its gross has also increased from $100.55 million in 2018 to $260.32 million in 2023. The gross profit margin has remained between 64% and 67% during this period, showing the company’s stability in maintaining profit margins, reaching a high of 66.55% in 2021 and 66.72% in 2023.

Table Proofpoint End-to-end Email Encryption Value, Gross and Gross Margin (2018-2023)

Proofpoint	2018	2019	2020	2021	2022	2023
Value (M USD)	156.78	201.98	239.72	300.79	344.65	390.16
Gross (M USD)	100.55	132.94	157.53	200.17	225.65	260.32
Gross Margin	64.13%	65.82%	65.71%	66.55%	65.47%	66.72%

Proofpoint’s market value increased from $156.78 million in 2018 to $390.16 million in 2023, showing the company’s steady growth in this field. However, its global market share showed a downward trend, from 25.41% in 2018 to 22.64% in 2023. Although Proofpoint’s market value is increasing, its relative share of the global market is decreasing, which means that the entire end-to-end email encryption market has grown faster than Proofpoint during this period, or other competitors have grown faster, resulting in a decline in Proofpoint’s relative market share.

4. Zix End-to-end Email Encryption Market Analysis

4.1 Zix Business Overview

Zix, an OpenText company, is a leader in email security and helps organizations overcome their greatest digital transformation challenges by providing a secure, modern workplace. Trusted by the nation’s most influential institutions in healthcare, finance, and government, Zix delivers a superior experience and easy-to-use solutions for email encryption and data loss prevention, advanced threat protection, information archiving, and cloud backup. Focusing on the protection of business communication, Zix enables its customers to better secure data and meet compliance needs.

4.2 End-to-end Email Encryption Product Profiles, Application and Specification

Table End-to-end Email Encryption Product Profiles, Application and Specification

Zix Email Encryption is now Webroot™ Advanced Email Encryption powered by Zix™

Zix joins the powerhouse portfolio of cyber resilience product offerings from OpenText Security Solutions. Protect confidential data. Prevent data loss. Remain compliant. Secure your email communication with Webroot. Protect Communications Using proven policy filters, your emails and attachments are scanned automatically. If emails contain sensitive information, they can be encrypted or quarantined. Ensure Accuracy The only provider of fully transparent email encryption. Transparency removes extra steps and passwords, making secure email as easy as regular email for both senders and receivers. Maintain Compliance Removes the hassle of encrypted email, giving you peace of mind that your sensitive data is secure. Compliance with regulations and company policies is no longer a burden.

4.3 Zix End-to-end Email Encryption Market Performance

Zix’s market value increased nearly fivefold from $51.54 million in 2018 to $248.57 million in 2023. Gross also increased from $32.44 million in 2018 to $160.36 million in 2023. Gross margin remained relatively stable during this period, with slight fluctuations, from 62.94% in 2018 to 64.51% in 2023. This shows that Zix was able to maintain the stability of its profitability while expanding its market value and revenue. In particular, in 2020, gross margin reached a peak of 64.53%, while in 2022 it dropped slightly to 62.84%, and then rebounded in 2023.

Table Zix End-to-end Email Encryption Value, Gross and Gross Margin (2018-2023)

Zix	2018	2019	2020	2021	2022	2023
Value (M USD)	51.54	119.66	151.76	183.68	211.88	248.57
Gross (M USD)	32.44	76.80	97.93	118.00	133.15	160.36
Gross Margin	62.94%	64.19%	64.53%	64.24%	62.84%	64.51%

Zix’s value in the end-to-end email encryption market has grown significantly from USD 51.54 million in 2018 to USD 248.57 million in 2023. However, its global market share has experienced some fluctuations during this time, standing at 8.35% in 2018, rising to 14.69% in 2019, before peaking at 15.33% in 2020, but then declining, to 14.43% in 2023 %.

Although Zix’s market value continues to increase, its relative share of the global market has declined, which may be due to the emergence of more competitors in the market, resulting in Zix’s market share being eroded. Despite this, Zix still maintains a high market share, demonstrating its important position in the end-to-end email encryption market.