Confidential Computing Market Size - By Component (Hardware, Software, Service), By Deployment Model (On-premises, Cloud), By Application (Data Security, Secure Enclaves, Pellucidity between Users), Industry Vertical & Global Forecast 2023 – 2032

Confidential Computing Market Size - By Component (Hardware, Software, Service), By Deployment Model (On-premises, Cloud), By Application (Data Security, Secure Enclaves, Pellucidity between Users), Industry Vertical & Global Forecast 2023 – 2032

Confidential Computing Market Size

Confidential Computing Market size was valued at USD 5.05 billion in 2022 and is estimated to register a CAGR of 26% between 2023 and 2032. Cloud computing is now a prevalent method used by organizations for data storage, processing, and analysis. Rising concerns pertaining to data security & privacy have hindered the adoption of cloud-based solutions in certain sensitive workloads. In such a scenario, confidential computing enables secure data processing in the cloud, thereby ensuring the protection of sensitive information, even from cloud service providers. The integration of confidential computing capabilities into cloud platforms is driving the adoption of secure cloud computing solutions.

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AI & ML technologies are increasingly being utilized in data analysis, predictive modeling, and decision-making applications. Such solutions often comprise the processing of sensitive data such as personal information or proprietary algorithms. Confidential computing provides a secure environment for executing AI & ML workloads, which leads to data privacy & protection. The rising adoption of Artificial intelligence in manufacturing industries is augmenting the confidential computing market demand.
 

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The integration of hardware, software, and services can be highly complex while implementing confidential computing solutions. Organizations may face difficulties while selecting the right components, ensuring compatibility, and integrating confidential computing solutions into the existing systems. The complexity of implementation can lead to delays, cost overruns, as well as difficulties in maintaining & updating the confidential computing environment, hampering confidential computing market growth.

COVID-19 Impact

The COVID-19 outbreak caused disruptions in global supply chains and impacted the production & distribution of hardware components required for confidential computing solutions. This disruption led organizations to reevaluate their implementation timelines and witness delays in the adoption of confidential computing solutions. The pandemic also triggered digital transformation globally and across industries. Organizations had to rapidly adopt cloud computing solutions, online platforms, and digital services to adapt to the changing business landscape. This propelled the reliance on digital infrastructure, thereby amplifying the need for secure & confidential data processing. Organizations are seeking robust measures to protect sensitive data while enabling remote access & collaboration; this is estimated to heighten the adoption of confidential computing technologies.

Confidential Computing Market Trends

Edge computing refers to processing data closer to the source or the edge of the network, reducing latency and enabling the real-time decision-making. The growing trend of integrating confidential computing capabilities with edge computing infrastructure will enable secure & confidential data processing at the edge, thereby enhancing data privacy and minimizing the need to transmit sensitive information to centralized cloud environments. Confidential computing at the edge is particularly relevant for applications requiring effective data security & privacy; some examples of such applications are IoT devices, autonomous vehicles, and smart cities.

Confidential Computing Market Analysis

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The confidential computing market size from hardware segment dominated around USD 2 billion in 2022 and will grow at a CAGR of 27% during the forecast period. The hardware segment encompasses the development and manufacturing of secure & trusted hardware devices such as trusted execution environments, secure processors, and specialized hardware accelerators. The rising demand for secure hardware can be attributed to the increasing prioritization of data privacy & protection by organizations.

Confidential computing hardware ensures the encryption & isolation of sensitive data during processing, thereby mitigating the risk of unauthorized access. Based on the rising adoption of cloud computing and data-intensive applications, the demand for secure hardware is expected to undergo substantial growth.

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The cloud-based confidential computing market held over 60% of the revenue share in 2022 and is exceed USD 32 billion by 2032. Cloud deployment involves the leveraging of cloud service providers to host & manage confidential computing environments. Cloud-based confidential computing offers scalability, flexibility, and cost-effectiveness, which allows organizations to benefit from secure data processing without the need of heavy upfront infrastructure investments.
 

Cloud service providers are increasingly integrating confidential computing capabilities into their platforms, thereby enabling customers with the option to deploy & manage secure workloads in the cloud. This deployment model is gaining traction across various industry verticals including BFSI, IT & telecommunications, as well as retail. The rising adoption of cloud computing and the need for secure data processing in dynamic environments contribute to the cloud based confidential computing segment growth.

The confidential computing market from pellucidity between users segment was reached USD 1 billion in 2022 and is set to cross USD 11 billion by 2032. Confidential computing facilitates transparency & accountability between users. With the help of a secure & trusted execution environment, confidential computing enables multiple parties to perform computations on shared data without exposing sensitive information. This application is particularly relevant in collaborative environments such as data analytics consortia, financial transactions involving multiple participants, and secure data sharing in healthcare research. The growing demand for pellucidity between users can be attributed to the need for secure collaboration and data sharing across industry verticals.

Confidential computing plays a crucial role in securing payment processing in the retail industry. Financial data security is of paramount importance in the age of ever-increasing online transactions and mobile payments. Through the use of secure enclaves and encrypted processing, confidential computing solutions protect payment information throughout the transaction process, thereby minimizing the risk of data breaches and fraudulent activities. This instills confidence in customers, which fosters trust in retail businesses.

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The North America confidential computing market accounted for a significant share of over 40% in 2022 and is poised to surpass USD 20 billion by 2032. The region has a strong presence of technology giants, cloud service providers, and enterprises with a high demand for secure data processing solutions. The North America market growth is driven by factors such as stringent data protection regulations, a mature cybersecurity landscape, and a high level of digitalization across industries. The presence of major companies and continuous advancements in confidential computing technologies are contributing to the growth of the regional market.

Confidential Computing Market Share

The major companies operating in the confidential computing market include

• Amazon Web Services (AWS)
• Advanced Micro Devices (AMD)
• Anjuna Security
• Arm Holdings
• Cyxtera Technologies
• Decentriq AG
• Fortanix
• Google LLC
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• OVHcloud
• R3
• Super Protocol
• Swisscom

Confidential Computing Industry News

• In April 2023, Imperva, Inc. and Fortanix, Inc. entered into a collaborative agreement to join each other's strategic partner program. This collaboration will bring together two cybersecurity firms that specialize in multi-cloud data protection. The integrated products of both companies will allow users to manage the whole data security workflow, thereby assuring data privacy & compliance.

The confidential computing market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032, for the following segments

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Market, By Component

• Hardware
• Software
• Service

Market, By Deployment Model

• On-Premises
• Cloud

Market, By Application

• Data security
• Secure enclaves
• Pellucidity between users
• Others

Market, By Industry Vertical

• BFSI
• Government & defense
• Healthcare
• IT & telecommunications
• Retail
• Manufacturing
• Others

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

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Singapore
• Latin America
  • Brazil
  • Mexico
• MEA
  • GCC
  • South Africa

Frequently Asked Questions (FAQ)

How big is the confidential computing market?

The market size of confidential computing was reached USD 5.05 billion in 2022 and is projected to grow at over 26% CAGR from 2023 to 2032, driven by the rising adoption of AI in manufacturing industries.

Why is the demand for cloud-based confidential computing gaining traction?

Cloud-based confidential computing market accounted over 60% of the total revenue share in 2022 and is anticipated to surpass 32 billion by 2032, owing to the increasing adoption in the BFSI, IT & telecommunications, as well as retail sectors.

What is the size of the confidential computing industry in North America?

North America held more than 40% share of the market in 2022 and is estimated to amass over USD 20 billion by 2032, attributed to the strong presence of technology giants, cloud service providers, and enterprises in the region.

Who are the top companies operating in the confidential computing market?

Amazon Web Services (AWS), Advanced Micro Devices (AMD), Anjuna Security, Arm Holdings, Cyxtera Technologies, Decentriq AG, Fortanix, Google LLC, IBM Corporation, Intel Corporation, Microsoft Corporation, OVHcloud, R3, Super Protocol, and Swisscom are some leading confidential computing enterprises.