Digitization, mobilization, globalization, and virtualization are bringing about a major change in the way many operations are executed, communications take place, and enterprises work. These changes are also churning out vast volumes of data, which is transferred across enterprise and even global boundaries.
The global market is expected to expand at a favorable 7.7% CAGR from 2016 to 2024, rising from a valuation of US$774.3 mn in 2014 to US$1,637.3 mn by 2024. Owing to the highly sensitive form of data, the BFSI and hospital segments will emerge as two of the most lucrative application areas over the said period.
New Entrants Pushing the Innovation and Development Rates in MFT Solutions
The growth of the global managed file transfer market competitive landscape, through the entrance of new players, is boosting not only the client numbers, but also enabling a faster pace of development. Clients are now expecting an even better quality of cloud-based MFT solutions from the vendors in this market. New players such as Cleo Communications, Inc. and Biscom, Inc. have risen to the occasion and are showing high potential by creating a strong market position for themselves for the near future.
Each of the established players in the global managed file transfer market – Axway Software SA, Oracle Corporation, GlobalSCAPE, Inc., and IBM Corporation – has made significant strides in providing MFT solutions over the recent past. Oracle Corporation, for instance, is ramping up its development and promotion of MFT solutions for IT administrator, predicting a boom in MFT solutions demand.
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Cloud MFT Gains in Developments and User Preference
Clients of managed file transfer solutions providers had previously leaned towards on-premise MFT solutions. They are highly dependable in terms of security and integrity and also allow a faster rate of data transfer. However, most mid-sized and smaller businesses have experienced financial problems implementing on-premise MFT solutions. These bring with them added burdens of staffing, budget allocation, and localized data access. Smaller clients cannot afford these added costs, and therefore look to cloud-based MFT solutions. Till the recent past, there was a major negative connotation attached to cloud-based MFT solutions, owing to the ease with which data theft can occur over networks.
This is rapidly changing with heavy development of cloud-based MFT security and technology, especially by major players. Currently, nearly 60% of the users of managed file transfer solutions are leaning towards cloud-based platforms. This is further visible through the actions of companies such as IBM Corporation, which has shown major developmental focus on cloud-based solutions. There is also a minor yet significant percentage of users – mostly large companies – that are opting for hybrid MFT solutions. It allows them to avail the benefits of both platforms, thereby increasing productivity.
Rise in Cybercrimes Drives Asia Pacific MFT Market
Asia Pacific shows the fastest growth rate in the global managed file transfer market, primarily due to the rapid increase in cybercrimes. While similar rates of cybercrime growth are being witnessed in other regions as well, the Asia Pacific MFT market is showing a higher growth rate in awareness of current MFT solutions and their benefits in fighting network attacks. This is especially visible in the nations of India and China, with the latter showing the fastest growth rate in the market. Another complementary factor promoting the use of MFT solutions in the Asia Pacific is the rapid increase in digitization and digital information. The rapid increase in critical data generation is pushing countries to implement modern MFT solutions.
North America has been the most consistent region in the global managed file transfer market in terms of revenue growth and market developments. Currently, this region is being driven by the growing limitations that conventional file transfer systems have imposed. The North America MFT market is also benefitting from the large scale compliance implementation by governments, including SOX, HIPAA, and PCI DSS. Europe is showing similarly consistent growth rate, owing to the high generation of critical data by the banking sector and the need to protect customer digital identities.