Monday, 7 August 2017

Managed File Transfer Market: Concerns Regarding Securely Transferring Business Critical Files Pressure Companies to Adopt MFT Solutions


Cloud and hybrid deployment models will revolutionize the global market for managed file transfer (MFT) and an increasing number of MFT vendors will align their business practices so as to make the most from this trend, states TMR in a recent report. The highly fragmented market features the presence of a large number of large-, mid-, and small-scale companies. Large-scale companies in the market, such as Ipswitch, Inc. and IBM are expanding their reach in lucrative regional markets such as Middle East and Africa and Asia Pacific by establishing operation and support centers, R&D centers, and acquiring small-scale niche regional players.


Large-scale vendors are also focusing on acquiring security standards such as integrated HIPAA and HITECH to tap the excellent growth opportunities provided by cloud service segment. In the next few years, cloud and hybrid services are expected to gain a dominant share in the global MFT market, phasing out on-premise deployment practices to a large extent.

Rising Prevalence of Cybercrimes Drives MFT Adoption

Rising volumes of business critical data from industries such as BFSI, defense, and telecommunications have made file transfer networks vulnerable to data breaches and thefts. The rising number of cybercrimes and the burgeoning need for centralizing critical data are some of the key factors driving the need for effective file transfer technologies and protocols. Conventional file exchange methods such as e-mails and File Transfer Protocol (FTP) have no longer remained viable options for managing sensitive files, especially now as the ways of cybercrimes are improving at an alarming rate.

Several government policies, mandating that sensitive data from fields such as healthcare, BFSI, and defense be properly secured, are also leading to an increased demand for effective MFT services and solutions. Examples include the Payment Card Industry Data Security Standard (PCI-DSS) for the payment industry and the Health Insurance Portability and Accountability Act (HIPAA) for the healthcare industry in the U.S.

Asia Pacific and Latin America to Present Most Attractive Investment Options

Developing countries across Asia Pacific and Latin America provide the much needed resources, raw materials, and growth opportunities to several industries owing to rising spending power and development across several sectors. As a result, Asia Pacific and Latin America have seen the emergence and expansion of many industries in the past few years. Sectors such as BFSI, telecommunication, defense, and IT are on the verge of a digital makeover in these regions, becoming increasingly exposed to incidences of cybercrimes.



This has highlighted the need for effective file transfer protocols that can securely manage file transfer routes and mitigate chances of undesired breakthroughs. Owing to these factors, the market for managed file transfer will witness significant expansion in Asia Pacific and Latin America from 2016 to 2024. The market will expand at a 10.3% CAGR in Asia Pacific and a 9.2% CAGR in Latin America over 2016 to 2024.

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.


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