Data encryption is set to go mainstream as organisations move to stem the " haemorrhaging flows" of lost, stolen or misused information, industry experts have predicted.

IDC noted that encryption, once reserved for protecting matters of national security, is expanding to become a viable option for combating emerging threats against computer-based data.

The analyst firm also believes that data encryption is helping companies comply with government and industry regulations.

According to new survey findings, 56 per cent of respondents believe that encryption should be implemented at the storage system software layer.

"For information to be valuable, it must be easily accessible at all times," said Charles Kolodgy, director of IDC's Security Products and Services group.

"The protection and preservation of data is critical, and encryption at the storage layer helps ensure protection while maintaining accessibility."

Some remain sceptical, however, as 41 per cent of respondents cited confidence in the recovery of encrypted data as a barrier to the deployment of storage encryption solutions.

The IDC study found that many organisations in the future will demand encryption to be a default feature of removable media. It also revealed that cost is not a large barrier for those firms that decide to use encryption.