Attacks by the online bad guys — hackers, spies and e-terrorists — are
helping to fuel a market for data and network encryption that could reach
nearly half a billion dollars by 2007, according to a new industry report.
The amount of classified information being transmitted via networks is
rapidly increasing, and
as e-terrorists attempt corporate espionage and hacker attacks, military and
government agencies along with contractors, are being required to invest more
to assure their privacy.
In fact, new analysis by marketing consulting company Frost & Sullivan entitled “World Military and Government High Assurance Network
and Data Encryption Market” states that this industry generated revenues of
$176 million in 2000 and is projected to increase steadily to $457.6 million
“Hackers are no longer solely focused on disrupting service and implanting
viruses,” said Frost & Sullivan Senior Analyst Brooks Lieske. “They are also
doing less noticeable, but potentially more damaging activities such as
reading e-mail and gathering restricted information from Internet sites and
International agencies ranging from the U.S. National Security Agency to NATO
are increasing network defense spending and modernizing equipment, says the
report. Because of the multiple security risks associated with networks, end
users are trending towards multi-layered security, with the military showing
growing interest in wireless encryptors.
“Manufacturers must also cater to defense contractors who use similar
high-speed encryptors to comply with government security regulations,” said
Lieske. “Not only must contractors protect sensitive information from global
espionage, but corporate espionage has also become a concern.”