Confidential Computing Market Size, Share, Trends, Growth and Forecast 2030

Confidential Computing Industry Prospective:

The global confidential computing market size was evaluated at $10 billion in 2022 and is slated to hit $19 billion by the end of 2030 with a CAGR of nearly 7.2% between 2023 and 2030.

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Confidential Computing Market: Overview

Confidential computing is a method that helps in data encryption and storage for both a firm and an individual, thereby securing their sensitive data. Moreover, it is getting massive support from hardware, software, and cloud vendors. Apart from this, confidential computing maintains data confidentiality and security in a slew of computing situations that enable firms to securely process confidential data, adhere to regulations, and favorably influence cloud computing activities. Furthermore, confidential computing improves trust by enabling data owners in maintaining data control when processed via remote servers.

Key Insights

• As per the analysis shared by our research analyst, the global confidential computing market is projected to expand annually at the annual growth rate of around 7.2% over the forecast timespan (2023-2030)
• In terms of revenue, the global confidential computing market size was evaluated at nearly $10 billion in 2022 and is expected to reach $19 billion by 2030.
• The global confidential computing market is anticipated to grow rapidly over the forecast timeline owing to the escalating necessity of complying with government laws such as the General Data Protection Regulation and California Consumer Privacy Act.
• In terms of component, the services segment is slated to register the highest CAGR over the analysis period.
• Based on the vertical, the retail & e-commerce segment is set to dominate the end-user segment over the forecast period.
• Region-wise, the Asia-Pacific confidential computing market industry is projected to register the fastest CAGR during the assessment timeline.

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Confidential Computing Market: Growth Factors

Huge need to comply with data compliance laws enforced by government to boost the global market growth

Escalating necessity of complying with government laws such as the General Data Protection Regulation and the California Consumer Privacy Act will prompt the global confidential computing market trends. Apart from this, confidential computing offers secure environment and protects the confidential information of the end-users and this can help firms as well as end-users in securing data privacy and abiding by government laws. This factor will boost the expansion of the global market. Reportedly, confidential computing assists companies in complying with HIPAA by offering them a secure environment for protecting their confidential data. Strict compliance regulations for a plethora of industries such as government, healthcare, and finance will steer the global market expansion over the upcoming years. New launches have favorably leveraged the expansion of every business and the confidential computing business is one of them. Citing an instance, in the first half of 2023, Microsoft Corporation declared the expansion of its confidential VM family by introducing ECesv5-series and DCesv5-series. Such moves will boost the global market expansion.

Confidential Computing Market: Restraints

Surge in hardware & software costs can hinder the global industry expansion over 2023-2030

Rise in the implementation and integration costs of cloud computing will put brakes on the global confidential computing industry expansion. Apart from this, rising hardware and software costs can hinder the growth of the global industry. A prominent surge in the costs of personnel and software prices along with maintenance charges will impede the global industry expansion.

Confidential Computing Market: Opportunities

Massive requirements for confidential AI services in a spectrum of end-use sectors will steer the global market expansion

Escalating need for confidential AI solutions will open new growth avenues for the global confidential computing market. Massive requirements for secured encryption systems for data protection will pave the way for the growth of the market in the upcoming years.

Confidential Computing Market: Challenges

Less availability of skilled persons can be the biggest challenge for the global industry by 2030

Lack of availability of skilled personnel and complexities related to confidential computing created new challenges for the global confidential computing industry. Moreover, the lack of acceptance of these technologies by small and medium-scale firms will further hinder global industry expansion.

Confidential Computing Market: Segmentation

The global confidential computing market is sectored into component, deployment mode, vertical, application, and region.        

In component terms, the global confidential computing market is segregated into hardware, services, and software segments. Furthermore, the services segment, which gained nearly 55% of the global market revenue in 2022, is expected to record the fastest CAGR in the forecasting timeline. The growth of the segment in the forecasting years can be due to the notable role played by services in implementing and deploying confidential computing solutions

Based on the vertical, the global confidential computing industry is sectored into BFSI, IT & telecom, healthcare, retail & e-commerce, manufacturing, government & public sector, and others segments. Moreover, the retail & e-commerce segment, which garnered a huge share of the global industry in 2022, is set to dominate the global industry over the expected timespan. The segmental growth over the predicted timespan can be subject to an increase in demand for effectively handling confidential data in the retail & e-commerce segment enhancing the penetration of confidential computing tools in the segment.

Based on the deployment mode, the global confidential computing market is divided into on-premise and cloud segments.

In terms of application, the global confidential computing industry is sectored into data security, secure enclaves, pellucidity between users, and others.

Confidential Computing Market: Report Scope

Confidential Computing Market: Regional Insights

North America is anticipated to retain its global market dominance over the expected timeframe

North America, which contributed about 66% of the global confidential computing market revenue in 2022, will be a dominating region over the projected timeline. Furthermore, the regional market surge can be attributed to the increase in the allocation of funds for developing new technologies such as cloud-based solutions. Furthermore, the growing demand for digitization will embellish the regional market trends. Presence of key players in the U.S. and Canada will embellish the regional market growth. These countries are anticipated to be the regional revenue growth drivers of the market in the near future.

Asia-Pacific confidential computing industry is set to register the fastest CAGR in the next couple of years owing to the surge in the allocation of funds in AI, IT, ML, AR, IoT, and connected devices. Growing demand for confidential computing tools in the BFSI, IT & telecom, healthcare, retail & e-commerce, manufacturing, and government & public sectors in countries such as China, Japan, South Korea, Singapore, and Taiwan will embellish the growth of the industry in the region.

 Confidential Computing Market: Competitive Space

The global confidential computing market profiles key players such as :

• Amazon Web Services Inc.
• Ovh SAS
• fortanix
• Intel Corporation
• Alibaba Cloud
• International Business Machines Corporation
• Microsoft Corporation
• Advanced Micro Devices Inc.
• Cyxtera Technologies Inc.
• Google LLC.

The global confidential computing market is segmented as follows:

By Component

• Hardware
•  Services
•  Software

By Vertical

• BFSI
•  IT &Telecom
• Healthcare
• Retail & E-commerce
•  Manufacturing
• Government & Public Sector
• Others

By Application

• Data Security
• Secure Enclaves
• Pellucidity Between Users
• Others

By Deployment Mode

• On-Premise
•  Cloud

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa