Managed File Transfer market surges, propelled by cyber threats, stringent regulations, and on-premises dominance in BFSI. Software leads for hybrid agility—enterprises’ vital security checkpoint amid rising vulnerabilities.
Chicago, Feb. 05, 2026 (GLOBE NEWSWIRE) — The global managed file transfer market size was valued at USD 2.57 billion in 2025 and is projected to hit the market valuation of USD 7.63 billion by 2035 at a CAGR of 11.50% during the forecast period 2026–2035.
The Managed File Transfer (MFT) market is undergoing a seismic shift in 2024 and 2025, driven not by organic file volume growth, but by an aggressive convergence of regulatory enforcement, ransomware industrialization, and hybrid infrastructure complexity. The demand is growing because MFT is no longer just a utility for moving data, it has become the “chkpoint” for enterprise security and compliance.
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With 2024 witnessing record-breaking vulnerability exploitations (e.g., MOVEit, GoAnywhere) and 2025 marking the enforcement of draconian standards like PCI DSS 4.0, organizations are forced to modernize or face existential financial and reputational risks.
Key Findings Shaping the Market
- North America led the managed file transfer market, capturing the biggest portion at 37.8% in 2025.
- Based on deployment type, the cloud-based category commanded the top position in the market in 2025.
- Based on organization size type, the large enterprise category secured the greatest share of the market in 2025.
- Based on solution type, the software category claimed a leading market share in 2025.
- Based on end-user, the BFSI category dominated the market with the largest share in 2025.
- Based on use case, the Ad-Hoc File Transfer category maintained a commanding presence in the market in 2025.
By Solution, Software Solutions Secure Leading Market Share By Enabling Hybrid Portability
The software segment continues to outsell service-based alternatives by offering superior infrastructure agility in the managed file transfer market. The primary driver for this 2025 dominance is the rapid adoption of containerization technologies like Kubernetes and Docker. Organizations prefer purchasing portable software licenses that can be deployed anywhere, from a local server to a private cloud instance, without vendor lock-in. This flexibility allows IT teams to lift and shift their MFT ecosystems instantly based on changing cost structures or performance needs.
Unlike rigid SaaS platforms, licensed software grants administrators full access to the backend database. This access enables deep analytics and custom reporting that SaaS dashboards often obscure. Furthermore, the software model supports edge computing strategies where lightweight MFT agents must run on remote, low-connectivity devices.
- The standalone file transfer software segment captured 62% of the total market valuation in managed file transfer market.
- Containerized MFT software deployments surged by 35% year-over-year.
- Enterprises owning software licenses reported a 25% lower Total Cost of Ownership (TCO) over five years compared to SaaS subscriptions.
- Over 70% of Fortune 500 companies utilized licensed MFT software to maintain multi-cloud interoperability.
By End Users, BFSI Sector Controls Largest Market Share Through Open Banking Integration
The Banking, Financial Services, and Insurance sector leads the market by utilizing MFT as the bridge to the Open Banking economy. Beyond standard compliance, the 2025 dominance is fueled by the need to modernize legacy core banking systems without replacing them. Financial giants are using MFT to securely pipe data between archaic mainframes and modern fintech applications. This facilitates the real-time data flow required for instant loan approvals and personalized AI-driven banking services.
Security in this sector has evolved from simple encryption to proactive threat hunting. BFSI leaders are integrating managed file transfer logs directly into AI-powered security operations centers to predict fraud patterns before files are fully settled. This strategic usage transforms MFT from a utility into a competitive advantage for customer retention.
- Investment in MFT for fraud prevention integration increased by 28% across top-tier banks.
- 85% of global financial institutions utilized managed file transfer to synchronize data with third-party fintech partners.
- Daily transfer volumes in the insurance sub-sector rose by 19% due to automated claims processing.
By Use Case, Ad-Hoc Transfer Use Case Anchors Top Market Share Via Zero Trust Adoption
The Ad-Hoc segment maintains its stronghold not merely by replacing email but by serving as the primary interface for Zero Trust security models. In 2025, the user experience has become the ultimate security feature. Organizations found that cumbersome security protocols led to workarounds, so they adopted frictionless Ad-Hoc MFT tools that verify identity continuously. This segment dominates because it secures the external supply chain where automated systems cannot reach. Contractors, legal teams, and temporary consultants require temporary, revoked-access file sharing capabilities.
Ad-Hoc solutions provide this through time-bombed links and view-only permissions that expire automatically. This granular control over external sharing prevents data leakage during complex B2B collaborations. Consequently, businesses are prioritizing these person-to-person tools to close the security gaps left by collaboration platforms like Teams or Slack.
- Secure “one-time-use” link generation increased by 50% as companies abandoned email attachments.
- 90% of legal and consultancy firms adopted Ad-Hoc MFT as their mandatory client exchange standard.
- Supply chain data breaches dropped by 30% in organizations enforcing Ad-Hoc MFT portals for external vendors.
Accelerating Vulnerability Exploitation Drives Urgent Security Infrastructure Overhauls
The security landscape surrounding the managed file transfer market has shifted from passive defense to active survival. Global cybersecurity agencies reported a staggering 40,008 total vulnerabilities in 2024, marking a one-third increase year-over-year. Security teams now face a critical urgency, as the CISA Known Exploited Vulnerabilities catalog added 186 new actively exploited flaws in 2024 alone. Retrospective analysis confirmed that the Cl0p ransomware campaign compromised over 2,700 organizations via file transfer exploits. Consequently, 2,559 organizations were confirmed as impacted by the MOVEit breach by late 2024. These figures illustrate why the Managed file transfer market is currently driven by a desperate need for hardened perimeters.
High-severity exploits are forcing immediate platform evaluations. Fortra’s GoAnywhere MFT suffered a critical authentication bypass vulnerability with a CVSS score of 9.8 in early 2024. A subsequent deserialization flaw in the same platform received the maximum severity CVSS score of 10.0. Progress MOVEit Transfer also faced a high-severity vulnerability with a CVSS score of 9.1 in June 2024. Current data indicates that MFT platforms carry a risk score of 4.72 out of 5, outpacing nearly every other technology. Security teams now face an average time-to-patch window of just 48 hours for critical bugs.
Regulatory Enforcement and Financial Penalties Force Mandatory Compliance Upgrades
Strict adherence to new standards is the primary catalyst for spending within the Managed file transfer market. As of March 31, 2025, 51 future-dated requirements in PCI DSS 4.0 became mandatory for all entities handling card data. The standard introduced a total of 64 new technical requirements, significantly raising the bar for encryption and access control. Non-compliance is no longer an option, as regulators levied USD 3.1 billion in fines against TD Bank in October 2024 for data governance failures. Such penalties drive the urgent adoption of compliant Managed file transfer market solutions.
Geographic and sector-specific enforcement has become equally aggressive. North American regulators issued 95% of global financial penalties in 2024. European entities also face pressure, exemplified when Swedish regulator Finansinspektionen fined Klarna Bank SEK 50 million in December 2024. Banks accounted for 82% of all U.S. regulatory fines in 2024, signaling a target on the financial sector. Furthermore, the UK government reported 49,000 incidents of cyber-fraud, necessitating stricter regional data mandates. Global ESG-related fines involving data governance surged to USD 37.7 million in 2024, proving that compliance is a financial imperative.
Operational Visibility Gaps Persist Despite Growing Cybersecurity Investment
A disturbing disconnect exists between perceived safety and actual protection in the Managed file transfer market. According to the Kiteworks 2025 report, 59% of organizations reported MFT security incidents in the past 12 months. A major contributing factor is the 34-point gap between organizations encrypting data in transit versus data at rest. Only 8% of government agencies encrypt MFT data at rest, leaving classified information vulnerable. Similarly, the healthcare sector protects only 11% of its data at rest. These operational blind spots highlight the urgent need for modernized Managed file transfer market tools.
Integration failures further exacerbate these security risks. Currently, 63% of MFT systems lack integration with Security Information and Event Management (SIEM) tools, preventing real-time threat detection. Organizations prioritize features differently, yet 90% of businesses prioritized enhanced security features over speed in 2024 procurement. Despite this intent, the lack of holistic visibility remains a critical weakness. The cost of a single record in a healthcare breach reached USD 165 globally in 2024, underscoring the financial consequences of these visibility gaps. Secure, visible data movement is now a boardroom priority.
Artificial Intelligence and Cloud Adoption Introduce New Data Vectors
Emerging technologies are reshaping the technical requirements of the Managed file transfer market. Eurostat reported that 42.5% of EU enterprises utilized cloud computing services in 2024, driving regional demand. Globally, 65% of enterprises now utilize cloud-based file transfer solutions to support distributed workforces. To fuel this expansion, Kiteworks raised USD 456 million in August 2024 to enhance its Private Content Network. However, innovation brings risk. Approximately 30% of enterprises currently permit employees to use AI tools with sensitive files without formal controls.
The intersection of AI and file transfer is a growing concern for the Managed file transfer market. Data indicates that 26% of organizations experienced AI-related data incidents within their file transfer environments in 2024. Alarmingly, 12% of firms have not assessed AI-related data security risks at all. Organizations must balance innovation with control. IBM Sterling File Gateway 2.0 supports 14 distinct languages to assist global cloud teams. Furthermore, Axway’s 2024 SecureTransport update enabled 3 major cloud providers to be used simultaneously in a cluster, proving that hybrid-cloud flexibility is essential.
Hybrid Infrastructure Demands Higher Performance and Multi Cloud Connectivity in Managed File Transfer Market
Performance metrics are becoming the key differentiator in the competitive Managed file transfer market. Axway’s 2024 SecureTransport update delivered a 70% improvement in Folder Monitor startup time for cloud deployments. Additionally, file listing speeds in encrypted cloud repositories improved by 50% in the same update. Such gains are critical as data volumes explode. Enterprise MFT solutions now support file transfers up to 10 TB in specific cloud configurations. These metrics compel legacy users to upgrade to modern Managed file transfer market platforms.
Technical improvements focus on usability and monitoring in hybrid environments. IBM’s update introduced 2 new dedicated dashboards, “Application Home” and “File Activity,” to enhance visibility. IBM Sterling also removed the 8,000 byte limit for Microsoft SQL Server columns in 2024 to accommodate larger data sets. Coviant Diplomat MFT Enterprise supports unlimited concurrent PGP keys, ensuring scalability. For high-volume users, Coviant also supports unlimited defined processes, whereas the Basic edition limits this logic. These performance benchmarks are defining the new standard for enterprise-grade data exchange.
Vendor Consolidation and Support End Dates Necessitate Platform Migrations
Strategic lifecycle management is forcing immediate action within the Managed file transfer market. IBM ended support for Sterling B2B Integrator 6.0.x on April 30, 2024, compelling users to upgrade. Similarly, Axway discontinued support for Transfer CFT 3.6 on April 15, 2024. Database support is also shifting, as Axway ended support for PostgreSQL 12 databases on November 14, 2024. These dates create “forced migration” events that drive revenue and activity in the Managed file transfer market.
Vendors are releasing rapid updates to combat security threats. Progress released MOVEit Transfer 2024.0 on May 22, 2024, followed by Service Pack 2024.0.4 on September 18, 2024, for hardening. Fortra released GoAnywhere MFT 7.4.1 on December 4, 2023, which was vital for subsequent patching. Looking ahead, Coviant Diplomat MFT targets a September 2025 release for version 9.4.1. IBM Sterling 6.2.2.0 was released on December 18, 2025. Pricing strategies are also clear; Coviant Diplomat MFT Basic Edition is priced at USD 1,149 per year, while the Enterprise Edition costs USD 10,999 per year.
Modern API Integrations and Expanded Technical Limits Define Usability
Connectivity via API is replacing legacy scripting in the Managed file transfer market. Thru’s MFT Connector for Boomi now supports 3 core operations: Read, Metadata, and Outcome. To ensure security, the Thru API is limited to returning 1 file per request. Vendors are aggressively retiring old protocols; Axway deprecated REST API versions 1.0, 1.1, 1.2, and 1.3 as of January 2025. These shifts ensure that the Managed file transfer market aligns with modern DevSecOps standards.
Security integration capabilities are becoming more granular. IBM Sterling 6.2 now supports Entrust nCipher HSM versions 12.4 and above for advanced encryption key management. To support complex federated identity management, IBM increased the username and email character limit to 255 characters. IBM’s new “Self Service” UI in Sterling 6.2.2.0 reduces admin screens by 50% for common tasks, streamlining operations. These technical specifications allow enterprises to integrate file transfer deeply into their broader security fabric, moving beyond simple file movement.
Sector Specific Risks And User Experience Shape Procurement Strategies
Risk profiles vary significantly across the Managed file transfer market. The Financial Services sector maintained the lowest incident rate at 25% due to mature governance. In contrast, 50% of Government agencies reported an MFT security incident, highlighting a critical need for modernization. Mid-market companies with 5,000–10,000 employees face a 32% breach risk, which is higher than large enterprises. Regional threats also loom large, with 2.39 million instances of cybercrime flagged in UK business sectors. These statistics dictate where Managed file transfer market vendors focus their sales efforts.
User experience is critical for reducing errors. While automation is key, human oversight remains. Security teams are under immense pressure. The fact that mid-market firms face such high risks suggests they are the “sweet spot” for attackers. The divergence in risk—low for finance, high for government—proves that technology alone is not enough; implementation matters. Ultimately, the market is bifurcating into highly secure, automated adopters and vulnerable legacy users. The data confirms that survival in 2025 depends on abandoning legacy tools.
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Managed File Transfer Market Key Players:
- AWS
- Axway Inc.
- CA Technologies, Inc.
- CData Software
- Cleo
- Couchdrop
- Fortra
- IBM
- JSCAPE
- Kiteworks
- Microsoft
- Open Text Corporation
- Progress Software
- SEEBURGER AG
- SolarWinds
- Stonebranch
- Thru, Inc.
- Tidal Software
- Wipro
- Other Prominent Players
Key Market Segmentation:
By Organization Size
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
By Deployment Type
- On-Premises
- Cloud-Based
By Solution Type
- Software
- Services
By End-User Industry
- Banking, Financial Services, and Insurance (BFSI)
- Healthcare and Pharmaceuticals
- Manufacturing
- Retail
- Government and Public Sector
- Energy and Utilities
- Telecommunications
- Others
By Use Case
- Ad-Hoc File Transfer
- Batch Processing
- Person-to-Person File Sharing
- Business-to-Business (B2B) Integration
- Application Integration
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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