It’s been a while since the Cerberus by Redwood team has provided an update on the broader secure file transfer market, so today the team wants to check in with thoughts on how secure file sharing will evolve in 2026 and beyond.
How will the secure file transfer software market evolve?
Analysts predict steady growth for the file transfer software market, although there are some signs that overall revenue will slow compared to prior years. Several notable trends exist:
- Increased vendor consolidation: Dell spin-off Boomi recently acquired Thru, Inc., which follows other acquisitions such as Progress’s purchase of ShareFile, Kiteworks’s European file transfer purchases and Bending Spoons’ purchase of WeTransfer. The Cerberus team expects these acquisitions to lead to higher prices and delayed roadmaps as the parent companies seek to recoup their investment. Market consolidation may also result in more broad, feature-rich solutions as opposed to specialty transfer tools, which typically carry a price premium.
- Continued cloud migration: The majority of organizations make use of cloud offerings in some capacity, but on-premise secure file transfer remains a significant requirement for organizations with heightened data security requirements. Even for these organizations, we expect to see a continued growth of the usage of cloud components and integrations, such as directory services, identity verifications, gateways and more. These tools are simply too efficient and ubiquitous not to be implemented.
- Security focus: Security will remain a constant concern in the market, as cyberattacks continue to scale and the cybersecurity posture of the U.S. federal government fluctuates, which leads to the next trend.
Vulnerabilities will remain a weakness
File transfer applications will, unfortunately, remain a prime target for breach attempts. A few notable recent examples include:
- New York State’s discovery of a Command Injection vulnerability in GoAnywhere’s MFT product
- Ongoing attempts to breach Progress’s MOVEit Transfer tools, which are likely related to a breach from 2023
No software is perfect, which is one of the reasons why Cerberus’s parent company, Redwood Software, performs ongoing security tests of the Cerberus FTP server application, and why the Enterprise Plus Edition comes with features like automated network scanning and rogue transfer detection and shutdown. Data breach attempts already run to the trillions, and it’s critical that you choose a provider with a hardened system that conducts regular checks on its tools.
On a related note, FTP and FTPS usage will likely continue to decline due to preferences for SFTP’s easier encryption application and ability to support larger numbers of higher-bit encryption ciphers. A number of organizations have notified transfer partners that they will no longer use these protocols.
New file transfer features with a focus on quantum ciphers and AI
The team expects new file transfer features to come from the following buckets in 2026:
- The implementation of “post-quantum” cryptography (PQC): Significant research is being conducted on quantum-resistant file transfer, with NIST producing FIPS 203 and 204 to establish PQC standards for key agreement and signatures, respectively. The IETF is currently working on related changes to TLS and other secure file transfer protocols as well.
- Improved security orchestration and integration: As the file transfer market matures, administrators are turning to systems that can best integrate with security orchestration and governance tools to provide a seamless defense against threats. These tools generally include significant automation, logging and alerting, along with the ability to command and control the server from an external platform.
- Autonomous/AI implementations: As AI rapidly matures, file transfer applications will continue to integrate its capabilities into components to prevent brute force attacks, flag and halt suspicious transfers and ensure valid authentications. These tools are already in place and will continue to grow and improve as automated toolsets mature.
The Cerberus team hopes that you’ve found these insights valuable. Contact the file transfer experts at Cerberus to learn more about how you can use Cerberus to keep your file transfer processes secure.