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Global Encryption Software Market Trends, Analysis, Report: By Component: Software, Services; By Application: Disk Encryption, File/Folder Encryption, Database Encryption, Communication Encryption, Cloud Encryption; By Deployment Mode; By Enterprise Size; By Industry; Regional Analysis; Market Dynamics; Competitive Landscape; 2024-2032
Global Encryption Software Market Outlook
The global encryption software market size was valued at USD 12.80 billion in 2023. The market is further projected to grow at a CAGR of 16.3% between 2024 and 2032, reaching a value of USD 49.75 billion by 2032.
Key Takeaways
| Year | Statistic | Value |
| 2023 | Most encrypted data type | Financial information and personal data |
| 2023 | Healthcare organisations using encryption software | 90% |
| 2023 | US government annual cybersecurity spending | USD 15 billion |
| 2023 | Most used encryption algorithm | Advanced Encryption Standard (AES) |
| 2023 | Estimated number of passwords to protect | Over 300 billion |
| 2021 | Average data breach cost | USD 4.24 million |
| 2021 | Small businesses in the US using encryption | 52% |
| 2020 | Enterprise storage systems encryption adoption rate | 50% |
Encryption software is a type of security program that uses cryptography to convert data into a secret code, making it unreadable to unauthorised users. This software enables the encryption and decryption of data, protecting it from being stolen, changed, or compromised. It uses mathematical algorithms to scramble data into ciphertext, which can only be unlocked with a decryption key. Encryption software is essential for safeguarding sensitive, confidential, or personal information across the internet. The demand for database encryption is on the rise as these software plays a crucial role in ensuring the confidentiality of digital data stored on computer systems or data transmitted over network.
Numerous reports state that the growing need for data security and privacy, the increase in cyberattacks and data breaches, the expanding use of cloud-based services, and the growing popularity of mobile devices are the main factors propelling the growth of the encryption software market. The need to safeguard sensitive data from unauthorised access and the growing requirement for regulatory compliance are the other factors fuelling the encryption software market growth.
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Key Trends and Developments
Rising popularity of cloud-based encryption, increasing use of encryption in IoT devices, and growing adoption of quantum-resistant encryption are boosting the market growth
| Date | Company | News |
| January 2024 | Trend Micro | Recognised by Gartner as a leader in endpoint protection for its extensive endpoint threat protection, detection, and response capabilities. |
| November 2023 | Microsoft | Launched the Secure Future Initiative to address future cyberthreats and advance security engineering, including AI-based cyber defenses to protect citizens from online frauds. |
| June 2023 | Amazon Web Services | Introduced Amazon S3 dual-layer server-side encryption, a new encryption option that adds two layers of encryption to items uploaded to an Amazon Simple Storage Service bucket. |
| March 2023 | Vaultree | Introduced a new Data-in-Use encryption solution to the healthcare sector to enhance patient data privacy, also used in the financial industry to enable AI/ML analytics and securely exchange sensitive data. |
| Trends | Impact |
| Rising demand for data privacy solutions | The increasing need for data privacy solutions is being driven by the growing volume of data generated by digital channels, cloud technology, and the Internet of Things (IoT). |
| Proliferation of cloud-based encryption solutions | Solutions for cloud-based encryption that can safeguard sensitive data are becoming essential as cloud computing becomes more widely used. |
| Increasing need for IoT security | The proliferation of IoT devices and the growing volume of data generated by these devices have led to an increased need for data privacy solutions. |
| Strategic partnerships and innovative offerings | Many encryption software companies are entering into strategic partnerships and launching new software with advanced encryption technologies. |
| Regulatory standards and data privacy compliances | Data privacy compliances and the stringent regulatory standards are driving the adoption of encryption software across various industries. |
| Growing adoption of quantum-resistant encryption | As quantum computing becomes more prevalent, demand for quantum-resistant encryption is expected to rise, which can result in development of new solutions by key vendors. |
Global Encryption Software Market Trends
Data encryption market size is expected to increase due to the increasing use of encryption software in various industries such as healthcare, government, and banking, financial services, and insurance (BFSI). The market is also driven by the increasing adoption of encryption software by small and medium-sized enterprises (SMEs) and the growing trend of Bring Your Own Device (BYOD) policies in organisations.
Organisations, big and small, are exceedingly investing in employing digital solutions in their business operations to improve their productivity and expand their distribution channels while streamlining the varied processes involved. The growing internet penetration and increased digitalisation with heightened adoption of internet of things (IoT) across different industry verticals are expected to enhance encryption software market landscape.
Moreover, with the growing trend of remote working facilities and the usage of enterprise mobility solutions such as smartphones and tablets, the risk for data leaks and data theft has also increased. As a result, enterprises are investing in quality encryption software mechanisms to mitigate the risk of data theft, especially in cloud-based operations. In addition, the rising awareness pertaining to encryption technology is also contributing to its popularity in the market. These factors are estimated to positively impact the cloud encryption software market.
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Market Segmentation
Global Encryption Software Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:
| Market Breakup | Categories |
| Component | Software, Services |
| Application | Disk Encryption, File/Folder Encryption, Database Encryption, Communication Encryption, Cloud Encryption |
| Deployment Mode | On-Premise, Cloud |
| Enterprise Size | Small and Medium-Sized Enterprises, Large Enterprises |
| Industry | Banking, Financial Services, and Insurance, Aerospace and Defence, Government and Public Utilities, IT and Telecommunication, Healthcare, Retail, Others |
| Region | North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
Among services, the market can be sub-segmented based on type into professional services and managed services.
Cloud encryption software are expected to hold significant market share due to the implementation of cloud technology in major industry verticals
According to encryption software market analysis, the cloud encryption segment is predicted to hold a significant market share. This growth can be attributed to the increased implementation of cloud technology in major industry verticals such as the healthcare and retail industry to consolidate business processes, provide access and storage to a wide range of data, and improve work efficiency. In addition, the increased demand for data security to mitigate the risk of data theft and leak is further aiding the market growth. Cloud encryption helps to encode the data as it travels to improve the security of stored data. These factors are expected to contribute to the overall encryption software market growth in the forecast period.
Traditionally, enterprises across various industries have relied on disks and drives to store their data, making them highly vulnerable to malware and data theft. As a result, the demand for disk encryption software has increased significantly and the segment is expected to grow in the forecast period. Encrypted disks ensure the safety of data even if the disks are lost or stolen, as access to their contents remains restricted to authorised users. The growing prevalence of the Bring Your Own Device (BYOD) trend has further amplified the necessity for robust encryption techniques, as it enables the exchange of critical data on employee devices. These factors have collectively contributed to the escalating demand for disk encryption software and thus, can result in encryption software market expansion.
Banking, Financial Services, and Insurance (BFSI) industry has a heightened demand for encryption software because of the rising data breach cases
BFSI industry is anticipated to lead the encryption software market share in the forecast period. Encryption technology ensures that confidential data remains unreadable to unauthorised users, thereby protecting the integrity of financial data and preventing tampering or alteration. Encryption is also necessary for credit card fraud prevention, online banking transaction security, and digital signature verification during fund transfers. The use of encryption software also helps companies comply with regulations like GDPR (General Data Protection Regulation), and it plays a pivotal role in reducing financial losses, optimising business operations, and fostering consumer trust. The rising prevalence of cyberattacks, the increasing demand for data security and safety, and the growing adoption of digital payment technologies are driving the expansion of banking encryption software market.
By making it harder for hackers to access sensitive patient data, encryption in the healthcare industry helps to reduce the risk of data breaches. Encryption helps to ensure that patient information is shared securely without the risk of unauthorised access, which is important when healthcare providers need to share information with other healthcare organisations. As per the encryption software market report, healthcare organisations need to adhere to several rules and guidelines, such as the Health Insurance Portability and Accountability Act (HIPAA). These regulations mandate that healthcare providers use data encryption and other security measures to protect patient information.
Moreover, the adoption of encryption software by government and public utilities due to the need to comply with stringent regulations, such as digital signature services (DSS) and HIPAA is further augmenting the growth rate of encryption software market. The demand for encryption software is further being driven by the IT and telecommunications sector's growing reliance on cloud services, the need to adhere to data protection laws like the California Consumer Privacy Act (CCPA) in North America and the General Data Protection Regulation (GDPR) in Europe, and the rapid adoption of Internet of Things devices.
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Competitive Landscape
Market participants are actively introducing new encryption software to cater to diverse consumer and industry demand, further complying with evolving regulatory landscape.
| Company | Year Founded | Headquarters | Product Portfolio |
| IBM Corporation | 1911 | New York, United States | Cloud computing, artificial intelligence, blockchain, cybersecurity, data and analytics, and IT infrastructure |
| Microsoft Corporation | 1975 | Washington, United States | Operating systems, productivity software, gaming, devices |
| NortonLifeLock Inc. | 1982 | Arizona, United States | Antivirus software, VPN, and identity theft protection |
| Trend Micro Inc. | 1988 | Tokyo, Japan | Cybersecurity products and services including antivirus software, cloud security, and network defense |
Other key players included in the encryption software market include Micro Focus International Plc, Sophos Group, VeraCrypt, Broadcom Inc., Nord Security Inc., and AxCrypt AB, among others.
Global Encryption Software Market Analysis by Region
North America has the leading market share due to the high presence of major market players in the region
North America is estimated to hold a dominant position in encryption software industry due to the presence of leading market players, such as IBM and Microsoft in the region. The heightened adoption of digital solutions across industry verticals is leading to an increased demand for encryption software to protect digital data. Moreover, the increased investment in the development of encryption software technologies may increase the encryption software market value in the coming years. In addition, the region's well-established IT and telecommunications sectors are further contributing to market expansion.
However, because of the rising frequency of cyberattacks in the Asia Pacific region, the market is anticipated to grow significantly. Other significant factors boosting the encryption software market development include the growing adoption of cloud-based services, the increasing penetration of IoT and cloud services, and the advancements in the manufacturing sector of China and India. Furthermore, the lack of storage infrastructure in government agencies may present significant opportunities to create solutions that reduces and prevent data theft.
Key Highlights of the Report
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Component |
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| Breakup by Application |
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| Breakup by Deployment Mode |
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| Breakup by Enterprise Size |
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| Breakup by Industry |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.
1 Preface
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.1 Overview
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Snapshot
6.1 Global
6.2 Regional
7 Opportunities and Challenges in the Market
8 Global Encryption Software Market Analysis
8.1 Key Industry Highlights
8.2 Global Encryption Software Historical Market (2018-2023)
8.3 Global Encryption Software Market Forecast (2024-2032)
8.4 Global Encryption Software Market by Component
8.4.1 Software
8.4.1.1 Historical Trend (2018-2023)
8.4.1.2 Forecast Trend (2024-2032)
8.4.2 Services
8.4.2.1 Historical Trend (2018-2023)
8.4.2.2 Forecast Trend (2024-2032)
8.4.2.3 Breakup by Type
8.4.2.3.1 Professional Services
8.4.2.3.2 Managed Services
8.5 Global Encryption Software Market by Application
8.5.1 Disk Encryption
8.5.1.1 Historical Trend (2018-2023)
8.5.1.2 Forecast Trend (2024-2032)
8.5.2 File/Folder Encryption
8.5.2.1 Historical Trend (2018-2023)
8.5.2.2 Forecast Trend (2024-2032)
8.5.3 Database Encryption
8.5.3.1 Historical Trend (2018-2023)
8.5.3.2 Forecast Trend (2024-2032)
8.5.4 Communication Encryption
8.5.4.1 Historical Trend (2018-2023)
8.5.4.2 Forecast Trend (2024-2032)
8.5.5 Cloud Encryption
8.5.5.1 Historical Trend (2018-2023)
8.5.5.2 Forecast Trend (2024-2032)
8.6 Global Encryption Software Market by Deployment Mode
8.6.1 On-Premise
8.6.1.1 Historical Trend (2018-2023)
8.6.1.2 Forecast Trend (2024-2032)
8.6.2 Cloud
8.6.2.1 Historical Trend (2018-2023)
8.6.2.2 Forecast Trend (2024-2032)
8.7 Global Encryption Software Market by Enterprise Size
8.7.1 Small and Medium-Sized Enterprises
8.7.1.1 Historical Trend (2018-2023)
8.7.1.2 Forecast Trend (2024-2032)
8.7.2 Large Enterprises
8.7.2.1 Historical Trend (2018-2023)
8.7.2.2 Forecast Trend (2024-2032)
8.8 Global Encryption Software Market by Industry
8.8.1 Banking, Financial Services, and Insurance
8.8.1.1 Historical Trend (2018-2023)
8.8.1.2 Forecast Trend (2024-2032)
8.8.2 Aerospace and Defence
8.8.2.1 Historical Trend (2018-2023)
8.8.2.2 Forecast Trend (2024-2032)
8.8.3 Government and Public Utilities
8.8.3.1 Historical Trend (2018-2023)
8.8.3.2 Forecast Trend (2024-2032)
8.8.4 IT and Telecommunication
8.8.4.1 Historical Trend (2018-2023)
8.8.4.2 Forecast Trend (2024-2032)
8.8.5 Healthcare
8.8.5.1 Historical Trend (2018-2023)
8.8.5.2 Forecast Trend (2024-2032)
8.8.6 Retail
8.8.6.1 Historical Trend (2018-2023)
8.8.6.2 Forecast Trend (2024-2032)
8.8.7 Others
8.9 Global Encryption Software Market by Region
8.9.1 North America
8.9.1.1 Historical Trend (2018-2023)
8.9.1.2 Forecast Trend (2024-2032)
8.9.2 Europe
8.9.2.1 Historical Trend (2018-2023)
8.9.2.2 Forecast Trend (2024-2032)
8.9.3 Asia Pacific
8.9.3.1 Historical Trend (2018-2023)
8.9.3.2 Forecast Trend (2024-2032)
8.9.4 Latin America
8.9.4.1 Historical Trend (2018-2023)
8.9.4.2 Forecast Trend (2024-2032)
8.9.5 Middle East and Africa
8.9.5.1 Historical Trend (2018-2023)
8.9.5.2 Forecast Trend (2024-2032)
9 North America Encryption Software Market Analysis
9.1 United States of America
9.1.1 Historical Trend (2018-2023)
9.1.2 Forecast Trend (2024-2032)
9.2 Canada
9.2.1 Historical Trend (2018-2023)
9.2.2 Forecast Trend (2024-2032)
10 Europe Encryption Software Market Analysis
10.1 United Kingdom
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 Germany
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
10.3 France
10.3.1 Historical Trend (2018-2023)
10.3.2 Forecast Trend (2024-2032)
10.4 Italy
10.4.1 Historical Trend (2018-2023)
10.4.2 Forecast Trend (2024-2032)
10.5 Others
11 Asia Pacific Encryption Software Market Analysis
11.1 China
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Japan
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
11.3 India
11.3.1 Historical Trend (2018-2023)
11.3.2 Forecast Trend (2024-2032)
11.4 ASEAN
11.4.1 Historical Trend (2018-2023)
11.4.2 Forecast Trend (2024-2032)
11.5 Australia
11.5.1 Historical Trend (2018-2023)
11.5.2 Forecast Trend (2024-2032)
11.6 Others
12 Latin America Encryption Software Market Analysis
12.1 Brazil
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Argentina
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 Mexico
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Others
13 Middle East and Africa Encryption Software Market Analysis
13.1 Saudi Arabia
13.1.1 Historical Trend (2018-2023)
13.1.2 Forecast Trend (2024-2032)
13.2 United Arab Emirates
13.2.1 Historical Trend (2018-2023)
13.2.2 Forecast Trend (2024-2032)
13.3 Nigeria
13.3.1 Historical Trend (2018-2023)
13.3.2 Forecast Trend (2024-2032)
13.4 South Africa
13.4.1 Historical Trend (2018-2023)
13.4.2 Forecast Trend (2024-2032)
13.5 Others
14 Market Dynamics
14.1 SWOT Analysis
14.1.1 Strengths
14.1.2 Weaknesses
14.1.3 Opportunities
14.1.4 Threats
14.2 Porter’s Five Forces Analysis
14.2.1 Supplier’s Power
14.2.2 Buyer’s Power
14.2.3 Threat of New Entrants
14.2.4 Degree of Rivalry
14.2.5 Threat of Substitutes
14.3 Key Indicators for Demand
14.4 Key Indicators for Price
15 Competitive Landscape
15.1 Market Structure
15.2 Company Profiles
15.2.1 IBM Corporation
15.2.1.1 Company Overview
15.2.1.2 Product Portfolio
15.2.1.3 Demographic Reach and Achievements
15.2.1.4 Certifications
15.2.2 Microsoft Corporation
15.2.2.1 Company Overview
15.2.2.2 Product Portfolio
15.2.2.3 Demographic Reach and Achievements
15.2.2.4 Certifications
15.2.3 NortonLifeLock Inc.
15.2.3.1 Company Overview
15.2.3.2 Product Portfolio
15.2.3.3 Demographic Reach and Achievements
15.2.3.4 Certifications
15.2.4 Trend Micro Inc.
15.2.4.1 Company Overview
15.2.4.2 Product Portfolio
15.2.4.3 Demographic Reach and Achievements
15.2.4.4 Certifications
15.2.5 Micro Focus International Plc
15.2.5.1 Company Overview
15.2.5.2 Product Portfolio
15.2.5.3 Demographic Reach and Achievements
15.2.5.4 Certifications
15.2.6 Sophos Group
15.2.6.1 Company Overview
15.2.6.2 Product Portfolio
15.2.6.3 Demographic Reach and Achievements
15.2.6.4 Certifications
15.2.7 Broadcom Inc.
15.2.7.1 Company Overview
15.2.7.2 Product Portfolio
15.2.7.3 Demographic Reach and Achievements
15.2.7.4 Certifications
15.2.8 VeraCrypt
15.2.8.1 Company Overview
15.2.8.2 Product Portfolio
15.2.8.3 Demographic Reach and Achievements
15.2.8.4 Certifications
15.2.9 AxCrypt AB
15.2.9.1 Company Overview
15.2.9.2 Product Portfolio
15.2.9.3 Demographic Reach and Achievements
15.2.9.4 Certifications
15.2.10 Nord Security Inc.
15.2.10.1 Company Overview
15.2.10.2 Product Portfolio
15.2.10.3 Demographic Reach and Achievements
15.2.10.4 Certifications
15.2.11 Others
16 Key Trends and Developments in the Market
List of Key Figures and Tables
1. Global Encryption Software Market: Key Industry Highlights, 2018 and 2032
2. Global Encryption Software Historical Market: Breakup by Component (USD Billion), 2018-2023
3. Global Encryption Software Market Forecast: Breakup by Component (USD Billion), 2024-2032
4. Global Encryption Software Historical Market: Breakup by Application (USD Billion), 2018-2023
5. Global Encryption Software Market Forecast: Breakup by Application (USD Billion), 2024-2032
6. Global Encryption Software Historical Market: Breakup by Deployment Type (USD Billion), 2018-2023
7. Global Encryption Software Market Forecast: Breakup by Deployment Type (USD Billion), 2024-2032
8. Global Encryption Software Historical Market: Breakup by Enterprise Size (USD Billion), 2018-2023
9. Global Encryption Software Market Forecast: Breakup by Enterprise Size (USD Billion), 2024-2032
10. Global Encryption Software Historical Market: Breakup by Industry (USD Billion), 2018-2023
11. Global Encryption Software Market Forecast: Breakup by Industry (USD Billion), 2024-2032
12. Global Encryption Software Historical Market: Breakup by Region (USD Billion), 2018-2023
13. Global Encryption Software Market Forecast: Breakup by Region (USD Billion), 2024-2032
14. North America Encryption Software Historical Market: Breakup by Country (USD Billion), 2018-2023
15. North America Encryption Software Market Forecast: Breakup by Country (USD Billion), 2024-2032
16. Europe Encryption Software Historical Market: Breakup by Country (USD Billion), 2018-2023
17. Europe Encryption Software Market Forecast: Breakup by Country (USD Billion), 2024-2032
18. Asia Pacific Encryption Software Historical Market: Breakup by Country (USD Billion), 2018-2023
19. Asia Pacific Encryption Software Market Forecast: Breakup by Country (USD Billion), 2024-2032
20. Latin America Encryption Software Historical Market: Breakup by Country (USD Billion), 2018-2023
21. Latin America Encryption Software Market Forecast: Breakup by Country (USD Billion), 2024-2032
22. Middle East and Africa Encryption Software Historical Market: Breakup by Country (USD Billion), 2018-2023
23. Middle East and Africa Encryption Software Market Forecast: Breakup by Country (USD Billion), 2024-2032
24. Global Encryption Software Market Structure
Key Questions Answered in the Report
In 2023, the encryption software market reached an approximate value of USD 12.80 billion.
The market is expected to grow at a CAGR of 16.3% between 2024 and 2032.
The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach USD 49.75 billion by 2032.
The major drivers of the encryption software market are increased demand for encryption software in major industry verticals, growing digitalisation, rapid spread of the internet, and the increasing investments in research and development activities by leading technology companies.
Key trends aiding market expansion include rising adoption of IoT and heightened deployment of cloud-based digital solutions.
Major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The various industries in the market for encryption software are banking, financial services, and insurance, aerospace and defence, government and public utilities, IT and telecommunication, healthcare, and retail, among others.
Small and medium-sized enterprises and large enterprises are considered in the market.
The significant deployment modes in the market include on-premise and cloud.
The major applications in the market are disk encryption, file/folder encryption, database encryption, communication encryption, and cloud encryption.
Key players in the market are IBM Corporation, Microsoft Corporation, NortonLifeLock Inc., Trend Micro Inc., Micro Focus International Plc, Sophos Group, Broadcom Inc., VeraCrypt, AxCrypt AB, and Nord Security Inc., among others.
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