Confidential Computing Market

Confidential Computing Market Outlook 2024 to 2034

The Confidential Computing Market is assessed to reach a valuation of USD 5.5 billion in 2024. The market is projected to reach a value of USD 692 billion by 2034, reflecting a staggering CAGR of 62.3% over the assessment period.

Global Trends in the Confidential Computing Market

• The increasing importance of confidential computing accompanies the growth in the cloud space, leading market players to introduce new products in their confidential computing portfolios.
• Robust growth in data breaches, regulatory policies, and the number of hackers is driving the demand for confidential computing to protect confidential data throughout its entire lifecycle.
• There is likely to be a surge in the adoption of Trusted Execution Environments (TEEs) in the upcoming years as leading organizations utilize TEEs to handle sensitive workloads.
• Confidential computing is poised to become a vital component of cybersecurity in the years to come, particularly in industries like BFSI and healthcare. By deploying these confidential solutions, businesses can ensure that the techniques and data used during processing are only accessible to authorized users, enabling them to maintain complete control over the data even in a public setup.

Attributes	Key Insights
Estimated Global Confidential Computing Market Size (2024E)	USD 5.5 billion
Projected Confidential Computing Industry Value (2034F)	USD 692 billion
Forecasted Value-based CAGR (2024 to 2034)	62.3%

Top Impediments for the Providers in the Confidential Computing Industry

• The high investment cost of implementing confidential computing technology is increasing its adoption among SMEs, which find it challenging to adopt it.
• Skilled professionals with expertise in cloud computing, cryptography, and data security are required to execute this technology. Hiring and retaining such professionals takes up an enormous budget for companies.

Adjacent Markets Overview

The following table provides a preview of closely associated markets with the confidential computing market. Markets such as the next-generation computing market and cloud computing market are discussed on the parameters of industry drivers, trends, and opportunities.

Out of these markets, the confidential computing market is projected to surpass the other mentioned markets with a staggering CAGR of 62.3%. Such overwhelming growth in confidential computing is anticipated to drive the adoption of generative AI.

Confidential Computing Market:

Attributes	Confidential Computing Market
CAGR (2024 to 2034)	62.3%
Growth Factor	Organizations are recognizing the importance of protecting sensitive data throughout its lifecycle
Opportunity	Opportunities are emerging for players as confidential computing is increasingly used in cloud data security
Key Trends	Increasing use in cybersecurity applications because of stringent data protection regulations, such as GDPR and CCPA

Next Generation Computing Market:

Attributes	Next Generation Computing Market
CAGR (2024 to 2034)	19.10%
Growth Factor	Rising demand to process and manage large volumes of data in industries such as healthcare, finance, and automotive
Opportunity	The use of technologies like AI, 5G, and ML is creating tremendous potential for next-generation computing market
Key Trends	Increasing expenditure on research and development activities by technology giants

Cloud Computing Market:

Attributes	Cloud Computing Market
CAGR (2024 to 2034)	13.50%
Growth Factor	Increase in cloud computing service providers to serve the rising demand for different remote facilities
Opportunity	Rising dependence on Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS) models to open up more market opportunities
Key Trends	The advent of modern digital technologies like AI and big data analytics is creating significant demand for cloud computing

Confidential Computing Market Statistics by Country

The growth of the confidential computing market in the Asia Pacific is slightly higher than in developed regions like North America and Europe. Common drivers that are inducing heightened adoption of confidential computing in these regions are:

• Increasing concerns about data protection due to the rising use of AI is leading to improved expenditure in confidential computing.
• Many countries are contemplating stricter privacy laws to protect sensitive data.

Countries	Forecast CAGR (2024 to 2034)
United States	62.6%
United Kingdom	62.9%
China	63.3%
Japan	63.7%
South Korea	64.7%

Emerging Opportunities in Confidential Computing Market in the United States

Deployment of confidential computing in the United States is projected to expand at a CAGR of 62.6% over the forecast period. With such exceptional growth, the market is forecasted to acquire sales worth USD 124.4 billion by 2034. Mentioned below are the top growth factors:

• The rising density of providers of local cloud hyperscale in the country.
• Surging demand for security and the capacity to handle cyber threat incidences.
• Increasing government support to develop and adopt unique cybersecurity paradigms is raising the demand for security solutions.
• Rapid occurrence of data breaches is catalyzing the adoption of confidential solutions in the United States.
• Market players are investing in advancements in software and hardware solutions and open-source initiatives to make confidential computing more scalable, user-friendly, and performant.
• Increasing stricter data privacy regulations are putting the onus on organizations to safeguard sensitive data. As a result, they are opting for confidential computing to process and analyze data securely, thus reducing compliance risks.

Growth Outlook for Confidential Computing Industry in the United Kingdom

The confidential computing market size in the United Kingdom is projected to surpass USD 27.4 billion by 2034. Throughout this period, the market is anticipated to register a CAGR of 62.9%.

• Leading authorities in Europe have defined confidential computing as a 'state-of-the-art' technology when it comes to protecting data.
• Multiple industries in the country are investing in computing solutions to protect sensitive data and comply with data protection regulations. Continuous monitoring, authorization, and legal requirements for cloud services and products are increasing the demand for confidential solutions.
• Increasing data breaches and cyberattacks are compelling government agencies and private firms to invest in the development of advanced security solutions. Confidential computing is thus providing an extra layer of protection to safeguard sensitive data in transit and at rest.

Opportunities Abound for Confidential Computing Providers in China

The confidential computing industry in China is estimated to attain USD 108.5 billion by 2034. Throughout the forecast period, the market is estimated to expand at a CAGR of 63.3%.

• Confidential computing is trailblazing a new style of cybersecurity, which is amplifying its scope in the country.
• With the support of the government, the adoption of confidential computing is expected to surge.
• Increasing strictness in privacy laws to safeguard sensitive data is projected to enhance the role of confidential computing in the future.
• Tech giants in China are actively investing in and creating their confidential computing solutions to foster a vibrant domestic ecosystem.
• International players are partnering with China-based market players to bring advanced software and hardware solutions to China, thereby accelerating technological progress.

Expansion Prospects in Japan's Confidential Computing Industry

The confidential computing market in Japan is forecasted to accumulate a total of USD 76.1 billion by 2034. From 2024 to 2034, the market is estimated to record a CAGR of 63.7%.

• The government is indirectly promoting the use of confidential computing to protect sensitive data by raising awareness regarding data privacy and security.
• Rising cyberattacks are empowering businesses and government agencies in Japan to adopt sophisticated security measures. This is raising the sales prospects of confidential computing as a result.
• Insurance companies and banks are adopting confidential computing to safeguard financial transactions and customer data.
• In the healthcare sector, confidential computing is being leveraged by hospitals and research institutions to safeguard patient data while facilitating secure analysis and collaboration for medical research.

Market Outlook of Confidential Computing in South Korea

The confidential computing market in South Korea is projected to reach a valuation of USD 44.5 billion by 2034. Through this period, the market is expected to register a CAGR of 64.7%.

• The thriving FinTech sector in South Korea is increasing the adoption of confidential computing to protect financial transactions and sensitive customer data.
• Cloud providers in Korea are supplying confidential computing services, thus making the technology accessible to many industries.
• Concerns over the protection of national secrets and data security are increasing the adoption of confidential computing in both the government and public sector.

Category-wise Insights

Confidential Computing Service Segment to Skyrocket in the Upcoming Years

Attributes	Details
Top Component	Service
CAGR from 2024 to 2034 %	62.1%

The service component is projected to have a significant share in the confidential computing market. Top factors that are contributing to market growth are:

• Growing demand for managed solutions provided by confidential computing services. These services allow users to leverage pre-configured environments and constant support to make adopting confidential computing faster and easier.
• Cloud-based confidential computing services provide dynamic resource allocation. As a result, users are increasingly deploying these services to scale up or down their working environments based on their certain needs, such as unpredictable data processing requirements.

On-premise Confidential Computing Solutions to Gain Significant Adoption

Attributes	Details
Top Deployment Mode	On-premise
Market Share in 2024	61.8%

The growing interest in on-premise confidential computing solutions is enhancing its share in the market. Top factors that are propelling the segment growth are:

• The use of on-premise deployment mode is increasing among end users as this deployment mode offers more control over data residency and reduces dependencies on outside service providers.
• Industries like finance, government, and healthcare tackle extremely sensitive data. Additionally, these industries show a high preference for keeping this data within their physical infrastructure for regulatory and security reasons. This preference increases the market share of on-premise deployment mode.

Key Players Aim to Increase their Share in the Confidential Computing Market

Key players are positioning themselves for massive success by employing different strategies. For instance, leading players are providing managed confidential computing services to make it easier for users to commence operations without deep technical expertise.

Furthermore, players are focusing on creating partner ecosystems to increase the adoption rate of confidential computing solutions.

Industry participants are substantially investing in research and development to enhance the capabilities and performance of their confidential computing technologies. They can also be seen partnering with software vendors and cloud providers to integrate their solutions smoothly.

Recent Developments that are Shaping the Confidential Computing Market

• Fortanix entered into a partnership with Imperva and joined a strategic partner program in April 2023. With this development, these companies aim to unite to protect multi-cloud data.
• Microsoft extended its confidential VM family by launching the D and E Cesv5-series in preview in April 2023. These VMs feature Intel 4th generation Xeon Scalable processors that are supported by Intel Trust Domain Extensions (TDX).
• Intel launched Project Amber, the latest security-as-a-service solution, in May 2023. The solution is developed to confirm remotely if a computing facility in the network’s edge, cloud, or on-premises environment can be trusted.
• Google entered into a collaboration deal with Intel for a new research project in April 2023. The new project aims to identify the potential security vulnerabilities in Intel TDX, the latest confidential computing technology.
• Arm launched its first Architecture Code of Confidential Computing for the Linux kernel in February 2023.

Notable Confidential Computing Companies

• IBM Corporation
• Microsoft Azure
• Intel
• Google Cloud
• AMD
• Amazon Web Services
• Arm
• Profian
• Decentriq
• Swisscom
• Others

Confidential Computing Industry by Category

By Component:

• Service
• Hardware
• Software

By Deployment Mode:

• On-premise
• Cloud

By End User:

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

By Application:

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

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• Middle East and Africa

Frequently Asked Questions

How Big is the Confidential Computing Market?

The market is estimated to account for USD 5.5 billion in 2024.

At What Rate Will the Confidential Computing Industry Grow?

Throughout the forecast period, the confidential computing industry is projected to register a CAGR of 62.3%.

What is the Expected Value of the Confidential Computing Industry by 2034?

By 2034, the confidential computing industry is forecast to be worth USD 692 billion.

Which Country is Expected to Exhibit Significant Growth in the Confidential Computing Industry?

South Korea is expected to observe significant market growth.

Which Component is Projected to Expand at a Vigorous Rate?

The service component is projected to expand at a robust pace.

Who are the Leading Companies in the Confidential Computing Market?

Key players in the confidential computing industry include Intel, Google Cloud, and AMD.