Global Confidential Computing Market Size, Share & Industry Trends Analysis Report

Global Confidential Computing Market Size, Share & Industry Trends Analysis Report By Component (Software, Hardware, and Services), By Application, By Deployment Mode (Cloud and On-premise), By Vertical, By Regional Outlook and Forecast, 2023 - 2030

The Global Confidential Computing Market size is expected to reach $131.9 billion by 2030, rising at a market growth of 57.2% CAGR during the forecast period.

IT & Telecom sector is widely utilizing confidential computing as 5G is anticipated to provide game-changing developments which will be helpful for the adoption of edge computing technologies, therefore, IT & Telcom is expected to generate 1/5th share of the market by 2030. Since 99.9% of APIs are centrally located in one or two data centers, businesses must find methods to provide data streaming edge messaging solutions or build an edge network that allows dispersed access. 5G provides real-time communication and accelerates application connection with an edge messaging system. The desire for more advanced connection technologies, such as 5G and 6G, will keep driving edge computing's development and investment.

The major strategies followed by the market participants are Partnerships as the key developmental strategy in order to keep pace with the changing demands of end users. For instance, In May, 2022, Google Cloud teamed up with AMD to leverage 3rd Gen AMD EPYC processors to power its Confidential Computing portfolio to ensure VM’s memory encryption doesn’t interfere with workload performance. Additionally, In October, 2020, IBM joined hands with R3 to expand choices for its customers scaling blockchain technology while delivering their highest levels of performance, compliance, and data privacy by combining R3's enterprise blockchain platform, Corda Enterprise, with its LinuxONE.

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the Market. In May, 2023, Microsoft teamed up with Habu, a data clean room software. Through this collaboration, the company would integrate its Data Clean Room applications with Azure confidential computing, enabling organizations to achieve a more secure environment and unlock insights from sensitive data without sacrificing security, privacy, or performance. Companies such as Intel Corporation, Alibaba Cloud, IBM Corporation are some of the key innovators in the Market.

Market Growth Factors

The enhanced requirement to comply with regulatory standards

Businesses must safeguard their consumers' data in accordance with laws governing data privacy, like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Confidential computing offers a safe and private processing environment, which may assist enterprises in adhering to these rules. The GDPR, for instance, mandates that the processing of personal data take place in a way that guarantees the data's proper security, including protection against unauthorized or illegal processing. Organizations may achieve this criterion using confidential computing, which ensures data processing safely and privately. This is anticipated to fuel the expansion of the market.

Increasing need for confidential AI solutions

A rising demand exists for solutions that can aid in preserving the privacy of AI models and data as artificial intelligence (AI) use increases. Secure enclaves and homomorphic encryption techniques are used by confidential AI solutions to safeguard sensitive AI data. Confidential AI is a collection of technologies and procedures to ensure the privacy and confidentiality of sensitive data in AI applications. Large datasets containing sensitive data, such as personally identifiable information (PII) or confidential corporate information, are often used to train AI models. This is anticipated to fuel the expansion of the market over the course of the projected period.

Market Restraining Factors

High costs associated with private computing

The high cost of deploying and maintaining these solutions is one of the significant obstacles in the market. Adopting confidential computing technologies may be challenging for small and medium-sized enterprises since they sometimes demand significant investments in hardware, software, and employees. For the protection and privacy of data and computations, these solutions can need specialized hardware, such as secure enclaves or dedicated processors. This hardware may need extra expenditures in infrastructure, such as data centers, and may be costly to purchase and operate. These aspects are hindering the market growth.

Component Outlook

Based on component, the market is divided into hardware, software, and services. In 2022, the software segment registered the highest revenue share in the market. As it offers means to create, manage, and encrypt memory areas associated with enclaves, this software maintains memory resources inside secure enclaves to provide isolation and data protection, preventing unwanted access or manipulation. Additionally, software elements allow for safe input and output procedures in contexts where trusted execution is possible.

Deployment Mode Outlook

By deployment mode, the market is segmented into on-premise and cloud. The cloud segment held the highest revenue in the market in 2022. This is because cloud computing stores different types of data on distant servers that may be further handled by others and are accessible through an internet connection. Additionally, "confidential" refers to keeping information safe from illegal access and limiting its usage to authorized individuals.

Application Outlook

On the basis of application, the market is fragmented into data security, secure enclaves, pellucidity between users, and other applications. In 2022, the secure enclaves segment recorded a remarkable revenue share in the market. A secure enclave creates a trustworthy TEE within a processor using a hardware-based mechanism. It offers a safe, secure environment where delicate calculations and data may be conducted with high security and integrity. Secure enclaves provide a border between the enclave and the rest of the system, cutting it off from other programs using the same hardware and the underlying operating system.

Vertical Outlook

Based on the vertical, the market is segmented into BFSI, government & defense, healthcare & life sciences, IT & telecommunications, manufacturing, retail & consumer goods, education, and other verticals. The healthcare segment garnered a significant revenue share in the market in 2022. Healthcare professionals must share data, but doing so with the wrong people who may learn about illnesses or DNA might have catastrophic consequences. Confidential computing may provide a solution by securing data even while healthcare workers utilize it, which is crucial in this case for cybersecurity. Through the use of confidential computing, data may now be used for purposes that were previously thought to be too dangerous.

Regional Outlook

Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North American region dominated the market with the largest revenue share in 2022. It is the most advanced market in terms of implementing confidential computing owing to various variables, including excellent IT infrastructure, the presence of many organizations, and the availability of technical capabilities. Legal regulations such as FedRAMP, a defined method for security evaluation, authorization, and continuous monitoring for cloud goods and services, are also influenced by confidential computing.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Swisscom Ltd, OVH Groupe S.A, Arm Limited (SoftBank Group Corp.), Microsoft Corporation, IBM Corporation, Intel Corporation, Google LLC (Alphabet Inc.), Amazon Web Services, Inc. (Amazon.com, Inc.), Advanced Micro Devices, Inc. and Alibaba Cloud (Alibaba Group Holding Limited).

Recent Strategies Deployed in Confidential Computing Market

Partnerships, Collaboration and Agreements:

May-2023: Microsoft teamed up with Habu, a data clean room software. Through this collaboration, the company would integrate its Data Clean Room applications with Azure confidential computing, enabling organizations to achieve a more secure environment and unlock insights from sensitive data without sacrificing security, privacy, or performance.

May-2023: Intel entered into collaboration with SAP SE, an enterprise software and solutions developer. The collaboration aims to offer its 4th Gen Intel® Xeon® Scalable processors for SAP clients to provide them with advanced technologies for faster, more secure, integrated business processes.

Nov-2022: Microsoft entered into an agreement with Lockheed Martin, a global security and aerospace company, to offer next-generation technology to the Department of Defense (DOD). The agreement enables the company to provide its customers with solutions to face new threats and challenges.

May-2022: Google Cloud teamed up with AMD, a semiconductor company based in America. The collaboration is aimed to leverage 3rd Gen AMD EPYC processors to power its Confidential Computing portfolio to ensure VM’s memory encryption doesn’t interfere with workload performance.

Feb-2022: Google entered into a partnership with Thales, which designs, develops, and manufactures electrical systems. The partnership would enable the company to leverage Thales’s CipherTrust Data Security Platform, to offer data security solutions to its customers for seamlessly encrypting and decrypting their sensitive and proprietary information.

Mar-2021: Microsoft formed a partnership with AMD, an American semiconductor company. With the help of MD EPYC CPU-backed confidential computing virtual machines (VMs), the company's Azure confidential computing would offer its customers to encrypt entire VMs confidentially and enable confidentiality without recompiling code.

Product Launch and Product Expansions:

Jan-2023: Intel revealed Intel Trust Domain Extension, a VM isolation solution. The new solution is designed to protect data stored within the VMs inside a trusted execution environment (TEE) that’s isolated from the underlying hardware.

Acquisitions and Merger:

Feb-2022: IBM completed the acquisition of Neudesic, a leading U.S. cloud services consultancy. This acquisition aimed to expand IBM's portfolio of hybrid multi-cloud services and further improve the company's hybrid cloud as well as AI strategy.

Scope of the Study

Market Segments covered in the Report:

By Component

• Software
• Hardware
• Services

By Application

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

By Deployment Mode

• Cloud
• On-premise

By Vertical

• BFSI
• Healthcare
• IT & Telecom
• Government & Defense
• Manufacturing
• Retail & Consumer Goods
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Swisscom Ltd
• OVH Groupe S.A
• Arm Limited (SoftBank Group Corp.)
• Microsoft Corporation
• IBM Corporation
• Intel Corporation
• Google LLC (Alphabet Inc.)
• Amazon Web Services, Inc. (Amazon.com, Inc.)
• Advanced Micro Devices, Inc.
• Alibaba Cloud (Alibaba Group Holding Limited)

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