Homomorphic Encryption Market Size By Type (Fully, Partially, Somewhat), By Component (Solution [Encrypted Data Analytics, Encrypted AI/ML Data Modelling, Encrypted Data Linkage, Encrypted Database Querying, Encrypted Biometrics and Behavioral Data], Serv

Homomorphic Encryption Market Size By Type (Fully, Partially, Somewhat), 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 Application (Secure Data Computation, Data Privacy, Data Monetization, Regulatory Compliance), By End-Use (BFSI, Healthcare, Government, IT & Telecom, Others), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2030

The global homomorphic encryption market is projected to witness a commendable upsurge through 2030, driven by the implementation of stringent regulations to ensure cybersecurity.

In wake of the COVID-19 pandemic, a joint approach to information security and cybersecurity has become highly crucial. To that end, the European Commission proposed a new Cybersecurity Regulation and an Information Security Regulation. These new rules were intended to strengthen inter-institutional cooperation and security culture and minimize risk exposure. The rapid introduction of strict regulations is expected to boost the popularity of homomorphic encryption algorithms to ensure data security.

The global homomorphic encryption industry market is bifurcated in terms of type, component, application, end-user, and regional landscape.

Based on type, the market is bifurcated into fully, somewhat, and partially segments. The fully homomorphic encryption segment held a 44% industry share in 2021. This is credited to its ability to enable encrypted data to remain private and secure in untrusted environments such as public clouds.

With regards to component, the industry is segmented into professional and managed services, the professional service segment accounted for more than 66% of the homomorphic encryption market share in 2021. These services equip organizations with suitable technologies to meet regulatory compliance, which may stimulate segmental demand.

On the basis of application, the homomorphic encryption industry is segmented into secure data computation, data monetization, data privacy, and regulatory compliance. The data monetization segment accounted for a market share of over 19% in 2021. This is attributable to its capability to aid business organizations in improving efficiency, productivity, and new product developments.

With regards to application, the IT and telecom sector held a market share of over 11% in 2021. This is due to the increasing volumes of personal data managed on satellites, mobile devices, and the Internet, which has amplified the need for homomorphic encryption solutions. This sector also has become a major target for hackers. As a result, the adoption of strong encryption policies to reduce cyber threats will increase, contributing to segmental growth.

From a regional point of view, the Latin America homomorphic encryption market will depict a CAGR of over 11% through 2030. This is attributable to the rising risk of cybercrimes and financial losses. LATAM regions such as Brazil are among the highly susceptible countries to cyber-attacks. According to data from Kaspersky, cyber-attacks or online frauds grew by 23% in Brazil in 2021. This is expected to drive the adoption of homomorphic encryption services in the region.