MFTPaaS Market Trends

Growth Drivers

• Shift toward zero trust architectures (ZTA): The protection of sensitive data, such as personal information (PII) and health records (PHI), has become critical due to the increasing cyber threats. Considering this, businesses, especially in regulated industries, are moving to zero-trust file transfer models. A 63.5% YoY rise in enterprise transitions to Zero Trust File Transfer models was reported in 2024, where every access request is thoroughly and continuously checked, per the European Union Agency for Cybersecurity (ENISA).
  Furthermore, this trend is directly boosting the demand for MFTPaaS solutions that feature context-aware policies and multi-factor authentication. In the U.S., the Department of Homeland Security’s Zero Trust guidance for vendors is also pushing MFTPaaS adoption among federal contractors. Some vendors are integrating dynamic policy engines and user behavior analytics to remain competitive in the MFTPaaS market.

• Explosion of hybrid and multi-cloud deployments: The demand for cloud-native file transfer platforms is expected to be driven by businesses' increasing shift toward hybrid cloud strategies. Nearly 85.5% of enterprises are expected to adopt a cloud-first principle by the end of 2025. Many companies are introducing multi-cloud connectors with high-speed parallel file transfer capabilities. These solutions are highly demanded by multinational firms with disparate data centers and remote operations. The developed and developing economies are both expected to drive the sales of hybrid and multi-cloud MFTPaaS solutions, based on local requirements.

Challenges

• High cybersecurity compliance costs: MFTPaaS platforms require rigorous certifications for commercialization across the world. The compliance cost of cybersecurity certificates increases the burden on the budgets of manufacturers. Cybersecurity compliance costs exceed USD 179,000 annually, as per the U.S. Small Business Administration. This huge price deters small and medium-sized companies from expanding their operations. The National Association of Insurance Commissioners’ (NAIC) Cyber Report reveals that cyber insurance premiums grew by 14.5% in 2024, straining financials. The need for large capital for operational expenditure on security is limiting innovation and competitiveness.
• Lack of infrastructure readiness in emerging markets: Reliable data centers, high-speed connectivity, and low-latency networks are prime conditions for effective MFTPaaS deployment. All these lack in developing economies, which deters companies from employing regional expansion strategies. The study by the World Bank discloses that only 38.5% of enterprises in Africa have access to stable broadband for enterprise-grade cloud services. The unavailability of digital infrastructure and low budgets for public sector modernization lower the sales of MFTPaaS solutions in price-sensitive markets.