Homomorphic Encryption Market size to exceed $380 Bn by 2032
Published Date: May 2023
Homomorphic Encryption Market size is slated to cross USD 380 billion by 2032, according to a new research report by Global Market Insights Inc.
The rising rate of digitization across various industrial sectors working with sensitive information will influence the market demand. The BFSI, healthcare, IT, defence among several others are rapidly digitizing their activities for effectively and efficiently performing their day-to-day activities and implementing their long-term projects. The transmission and storage of sensitive information is thus increasingly growing, further leading to the rise in the number of cyber-attacks. The growing focus on reducing these attacks with the help of encryption technologies will foster the industry development.
Increasing prominence of homomorphic encryption services
The homomorphic encryption market from services segment will surpass USD 130 billion by 2032. The enforcement of stringent data protection laws, such as GDPR, and PCI DSS has forced organizations to look for expertise from service providers. The rising evaluation of the existing cybersecurity policies has also led to the launch of new homomorphic encryption strategies as well as the higher integration of homomorphic encryption through enterprise systems.
Surging need for data privacy
The data privacy application segment dominated more than USD 45 million in 2022, due to the growing number of enterprise data breaches in leading tech companies, such as Google, Microsoft, and Amazon. While the increasing usage of digital data has amplified the issues regarding privacy of data, the transfer of data to cloud in regulated industries is posing numerous challenges. Thus, homomorphic encryption is helping in overcoming these barriers as it allows the data to be analyzed without compromising the privacy. The increasing number of strategic initiatives and partnerships initiated by companies worldwide for ensuring data privacy will further drive the market growth.
Browse key industry insights spread across 279 pages with 305 market data tables and 34 figures & charts from the report, “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 [Professional Service, Managed Service]), By Type, By Application, By End-Use & Global Forecast, 2023 – 2032” in detail along with the table of contents: https://www.gminsights.com/industry-analysis/homomorphic-encryption-market
BFSI sector to emerge as a major end-user
The BFSI end-use segment will witness over 5% CAGR from 2023 to 2032, owing to the presence of several stringent data protection regulations as well as government directives for ensuring the safety of financial information. The emergence of regulations, including the PCI DSS, GDPR, and the Gramm-Leach-Bliley Act (GLBA) precisely necessitate various institutions to adopt data encryption policies for securing Personally Identifiable Information (PII). The increasing number of cyberattacks and breaches of the financial data in the banking sector and the consequent adoption of encryption technologies for the reduction of huge financial losses and non-compliance risks will add to the market expansion.
Rising data breaches in APAC
APAC homomorphic encryption market is projected to reach USD 90 million by 2032, attributed to the strong presence of huge number of small as well as medium sized enterprises and the subsequently rising data security issues. As a result, several regional companies are largely deploying homomorphic encryption for developing different authentication technologies and minimizing the risks of data security. The growing interest in digital data through internet and advanced networks is further magnifying the risks of data breaches in China, contributing to the robust need for strict regulations on data encryption for data security.
Partnerships to define market growth
Major players involved in the homomorphic encryption market include Cosmian, Cornami, Google, IBM, CryptoExperts, CryptoLab, Duality, Galois, Thales, and Intel. These companies are constantly implementing strategies, such as partnerships and acquisitions to gain competitive edges. For instance, in February 2023, Niobium Microsystems Inc., a well-known startup focusing on fully homomorphic encryption (FHE) teamed up with Silicon Catalyst incubator.
