Homomorphic Encryption Market Analysis

Homomorphic Encryption Market Analysis

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.
 

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 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.