Need to Secure Sensitive Data and Computations to Boost Market Growth
The confidential computing market size is expected to grow from USD 5.3 billion in 2023 to USD 59.4 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 62.1% during the forecast period. The growing need of confidential AI solutions, rise in edge computing are some of the opportunities for the confidential computing market growth. The lack of awareness regarding confidential computing represents a significant challenge for the growth of the confidential computing market.
As per component, the hardware segment to hold the highest CAGR during the forecast period.
The confidential computing market by component is divided into hardware, software, and services. The services segment is estimated to hold the highest CAGR of 67.8% during the forecasted period of the confidential computing market. The hardware components play a crucial role in providing the necessary security and trust for protecting sensitive data and computations. These hardware components are specifically designed to enhance the security posture of the computing environment.
As per application, data security segment holds the highest CAGR during the forecast period.
The application is segmented into data security, secure enclaves, pellucidity between users, and other applications. As per application, the data security is expected to hold the highest CAGR of 64.4% during the forecast period. Confidential computing relies on specialized hardware infrastructure to provide secure and isolated environments for data processing. This infrastructure includes trusted execution environments, secure enclaves, and hardware-based security features. Cloud providers and data centers are investing in confidential computing infrastructure to offer secure and trusted computing environments to their customers. The growing adoption of cloud computing and distributed computing environments presents challenges in maintaining data security. Confidential computing addresses these challenges by allowing data owners to maintain control over their data even when processed in third-party environments, mitigating risks associated with data outsourcing.
As per region, Europe holds the second largest market share during the forecast period
The confidential computing market is segmented into five regions, including North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. In terms of global confidential computing market share, Europe holds the second largest market share in 2023 and is expected to last throughout the forecast period. Europe has diverse business needs, as several large retailers and manufacturing companies demand robust and scalable IT infrastructure solutions. The region has always been a challenging market for cloud providers due to the stringent regulations and security standards pertaining to user data privacy. Europe has been at the forefront of data protection regulations, particularly with the implementation of the General Data Protection Regulation (GDPR). GDPR emphasizes the need for data privacy, security, and the protection of individuals' personal data. Confidential computing technologies align with GDPR requirements by enabling secure data processing and minimizing the risk of data breaches. The strict regulatory landscape in Europe has driven organizations to adopt confidential computing solutions to ensure compliance. European businesses and consumers place a high value on privacy and data sovereignty. Confidential computing provides a way to process sensitive data while maintaining control and ownership of that data. It enables organizations to protect their data from unauthorized access, even when it is being processed by third-party systems or in the cloud.
The breakup of the profiles of the primary participants is given below:
- By Company: Tier I: 33%, Tier II: 27%, and Tier III: 40%
- By Designation: C-Level Executives: 46%, Director Level: 22%, and Others: 32%
- By Region: Asia Pacific: 27%, Europe: 28%, North America: 40%, Rest of World: 5%
Note: Others include sales managers, marketing managers, and product managers
Note: Rest of the World includes the Middle East & Africa and Latin America
Note: Tier 1 companies have revenues more than USD 100 million; tier 2 companies’ revenue ranges from USD 10 million to USD 100 million; and tier 3 companies’ revenue is less than 10 million
Source: Secondary Literature, Expert Interviews, and Publisher Analysis
Some of the major vendors offering confidential computing across the globe are Microsoft (US), IBM (US), Intel (US), Google (US), AMD (US), Fortanix (US), AWS (US), Arm (UK), Alibaba Cloud (China), Swisscom (Switzerland), OVHcloud (France), pheonixNAP (US), AMI (Georgia), Applied Blockchain (UK), R3 (US), Decentriq (Switzerland), Hub Security (Israel), Edgeless Systems (Germany), Cysec (Switzerland), Opaque Systems (US), Profian (US), Super Protocol (US), Secretarium (UK), Anjuna Security (US), and Tresorit (Switzerland).
Research coverage:
The market study covers the confidential computing market across segments. It aims at estimating the market size and the growth potential of this market across different segments, such as component, application, deployment mode, vertical, and region. It includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Reasons to buy this report:
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall confidential computing market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
- Analysis of key drivers (increasing concerns regarding data privacy and security, growing adoption of cloud computing, advancements in hardware and software, increasing need to meet regulatory requirements), restraints (high cost related to confidential computing, regulatory compliance issues), opportunities (growing need of Confidential AI solutions, rise in edge computing to boost confidential computing growth, emerging opportunity in cloud-based confidential computing), and challenges (lack of awareness regarding confidential computing, complexity associated with confidential computing technology, limited standards to restricts the usage of confidential computing) influencing the growth of the confidential computing market.
- Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the confidential computing market.
- Market Development: Comprehensive information about lucrative markets - the report analyses the confidential computing market across varied regions.
- Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the confidential computing market.
- Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Microsoft (US), IBM (US), Intel (US), Google (US), AMD (US), among others in the confidential computing market.
Table of Contents
Executive Summary
Companies Mentioned
- Alibaba Cloud
- Amd
- Ami
- Anjuna Security
- Applied Blockchain
- Arm
- Aws
- Cysec
- Decentriq
- Edgeless Systems
- Fortanix
- Hub Security
- Ibm
- Intel
- Microsoft
- Opaque Systems
- Ovhcloud
- Phoenixnap
- Profian
- R3
- Secretarium
- Super Protocol
- Swisscom
- Tresorit
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 242 |
| Published | June 2023 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value ( USD | $ 5.3 Billion |
| Forecasted Market Value ( USD | $ 59.4 Billion |
| Compound Annual Growth Rate | 62.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 25 |
