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Homomorphic Encryption Market Size By Component (Solution [Encrypted Data Analytics, Encrypted AI/ML Data Modelling, Encrypted Data Linkage, Encrypted Database Querying, Encrypted Biometrics and Behavioral Data], Service), By Type, Application & Forecast, 2023 - 2032

  • Report ID: GMI5309
  • Published Date: Apr 2023
  • Report Format: PDF

Homomorphic Encryption Market Size

Homomorphic Encryption Market size valued at USD 161 million in 2022 and is anticipated to witness over 8% CAGR from 2023 to 2032.

Homomorphic Encryption Market

Increasing instances of research and development (R&D) projects for enhancing the effectiveness of various encryption methods and technologies worldwide will positively influence the homomorphic encryption market growth. The increasing rate of cyberattacks on private as well as government information systems has also propelled the rise in these projects.  Hence, numerous public and private organizations are directing efforts on these projects for funding and creating skilled workforce. For instance, the Institute of Physics of the University of Amsterdam and QuSoft, in May 2022, received a grant of more than USD 916.5 thousand from NWO’s Nationale Wetenschapsagenda (NWA) for a research project for determining the social impacts of quantum secure cryptography.

Homomorphic Encryption Market Trends

The limitations of skilled personnel for handling cybersecurity infrastructure of several government and private companies may hamper the homomorphic encryption market demand. As per ISACA’s 8th Annual Cybersecurity Survey in 2022, 60% of the respondents in India claimed to have unfulfilled cybersecurity positions, while 62% stated to have taken around 3-6 months for filling a cybersecurity position with a qualified candidate. Subsequently, this mass shortage of skilled labour may pose as a challenge to the industry outlook.

Homomorphic Encryption Market Analysis

Global Homomorphic Encryption Market Revenue, By Component,

With respect to component, the homomorphic encryption market size from the solution segment is projected to record over 8% CAGR through 2032. Homomorphic encryption solutions are increasingly deployed across various industries, such as insurance, banking, and healthcare for solving data protection vulnerability. Hence, several major data collaboration platforms are coming up with innovative solutions to meet the rising end-user requirements. For instance, Enveil, a leading technology startup, in June 2022, introduced as ZeroReveal ML Encrypted Training (ZMET), its new solution deployed with encrypted federated learning approach while facilitating the use of decentralized datasets in machine learning applications.


 Global Homomorphic Encryption Market Share, By Application


Homomorphic encryption market valuation from the secure data computation application segment reached over USD 35 million in 2022. The demand for secure data computation is considerably increasing as it helps to ensure the privacy of data during computation. This form of computation delivers encryption in use, rest and transit for assisting different parties in partnering and getting insights from their stored data without sharing the data with each other. The growing focus of various companies on taking up several strategic initiatives for open sourcing the framework will drive the industry development.


Homomorphic encryption market share from the healthcare end-use will USD 120 million by 2032, attributed to the rising adoption of homomorphic encryption solutions by several healthcare enterprises for protecting sensitive patient data as well as securing IP assets associated with drug discovery & research. As per the American Health Association (AHA) Centre for Innovation’s June 2019 whitepaper, over 180 individual cases of digital IP thefts were reported in the U.S. healthcare sector, primarily caused by Chinese hackers. Furthermore, healthcare institutes are largely deploying robust encryption protocols for mitigating the risks of the loss of patented information while rendering data inaccessibility to external threat vectors.



North America Homomorphic Encryption Market Revenue

North America homomorphic encryption market size is predicted to exhibit a CAGR of 5% between 2023 and 2032. The strong presence of big companies and startups in the region has made way for large volume of data as well as their higher vulnerability to cyberattacks and breaches.  To that end, homomorphic encryption technology is increasingly deployed for safeguarding the data of these companies.  Hence, the rising number of strategic partnerships for developing hardware and software for enhancing the performance of FHE (fully homomorphic encryption) computation along with the increasing private sector investments will add to the regional homomorphic encryption market expansion.

For instance, Enveil, in April 2022, secured a USD 25 million series B funding round for expanding its sales and product development while offering secure and private data usage, collaboration, sharing, and monetization.

Homomorphic Encryption Market Share

Some of the leading homomorphic encryption market players include:

  • Cosmian
  • IBM
  • Cornami
  • CryptoLab
  • Duality
  • CryptoExperts
  • Galois
  • Google
  • Thales,
  • Intel.

These firms, along with several startups, are focusing on the introduction of new solutions as well as public and private investments to meet the rising demand for cybersecurity due to the surging number of cyber-attacks on IT infrastructures.

 Homomorphic Encryption Industry News

  • In May 2022, Cornami Inc., a well-known startup, secured over USD 68 million in funding for decreasing the processing time of the running FHE software over the current processors.
  • Vaultree, in October 2022, launched its new data-in-Use Encryption technology for AlloyDB, one of Google's launch partners for AlloyDB. It also integrated the first-ever fully functional Encryption-in-use solution with AlloyDB for PostgreSQL.

This homomorphic encryption market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:

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Market, By Component

  • Solut 
  • Encrypted data analytics
  • Encrypted AI/ML data modelling
  • Encrypted data linkage
  • Encrypted database querying
  • Encrypted biometrics and behavioral data
  • Service 
  • Professional services
  • Managed services

Market, By Type

  • Fully homomorphic encryption
  • Partially homomorphic encryption
  • Somewhat homomorphic encryption

Market, By Application

  • Secure data computation
  • Data privacy
  • Data monetization
  • Regulatory compliance

Market, By End-use

  • BFSI
  • Healthcare
  • Government
  • IT & Telecom
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia
Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of homomorphic encryption was worth USD 161 million in 2022 and is poised to grow at 8% CAGR from 2023 to 2032, due to the increasing instances of research and development (R&D) projects.

The solution segment is anticipated to witness over 8% CAGR during 2023 to 2032, owing to rising adoption in insurance, banking, and healthcare for solving data protection vulnerability.

North America market size is projected to expand at 5% CAGR through 2032, attributed to the strong presence of big companies and startups in the region.

Some of the leading market players include Cosmian, IBM, Cornami, CryptoLab, Duality, CryptoExperts, Galois, Google, Thales, and Intel.

Homomorphic Encryption Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 18
  • Tables & Figures: 339
  • Countries covered: 16
  • Pages: 279
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