Privacy Enhancing Technology Market Outlook (2023 to 2033)

The privacy enhancing technology market size is expected to reach USD 2.4 billion in 2023 and is projected to reach a valuation of USD 25.8 billion by 2033. It is estimated that privacy enhancing technology adoption will grow at a CAGR of 26.6% during the forecast period.

The decision makers of organizations are increasingly finding the need to incorporate privacy-enhancing technologies (PETs) into their discussion of data collaboration as organizations look to connect safely and securely with their partners. In addition to simplifying data exchange, PETs allow business owners to build customer knowledge, optimize data value, and protect consumer privacy without relinquishing control.

PET technology has been preserving sensitive information of governments and highly-regulated industries for decades, making it accessible to authorized individuals without requiring them to move the information around. Early adoption of PETs has been largely driven by data regulation. Health insurance regulations like HIPAA, Gramm-Leach-Bliley, the Truth in Lending Act, and Equal Credit Opportunity Act have all helped companies in these industries transform themselves digitally. The NAIC, the National Association for Insurance Commissioners (NAIC), and the Gramm-Leach-Bliley Act accelerated the transformation.

Key Factors Influencing the Demand Outlook of the Privacy Enhancing Technology Industry:

  • Advanced cryptographic and statistical techniques are used to develop PETs.
  • Organizations seek to protect their data from security breaches by increasing spending on security to mitigate cyber threats and privacy risks.
  • The adoption of PETs is influenced by factors such as perceived costs, ease of use, perceived benefits, and IT infrastructure.
Attribute Details
Estimated Market Size (2023) USD 2.4 billion
Projected Market Size (2033) USD 25.8 billion
CAGR from 2023 to 2033 26.6%

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2018 to 2022 Global Privacy Enhancing Technology Market Outlook Compared to 2023 to 2033 Forecast

From 2018 to 2022, the global privacy enhancing technology sector experienced a CAGR of 29.3%. Web browsers that are designed with privacy features, such as Brave and Firefox Focus, have been widely embraced in part because they offer ad-blocking capabilities and anti-tracking features. Moreover, consumers are increasingly becoming aware of the importance of privacy-related products, such as virtual private networks (VPNs), encrypted messaging apps, and secure email services, which can enhance the privacy and protection of their data.

By using these technologies, personal information can be collected, used, and disclosed as little as possible, while still allowing digital services to function effectively and efficiently. Data privacy concerns and security breaches have spurred significant growth in the privacy-enhancing technologies market in recent years.

Over the last few years, advancements in data infrastructure and consumer acceptance of technology have enabled facial recognition to become a widely used feature on mobile devices. In addition to the current applications of differential privacy and homomorphic encryption in academic institutions, enterprise-level corporations are expecting to find new uses for privacy-enhancing technologies beyond those already in place.

Period Market Size (in USD billion)
2018 USD 0.7 billion
2022 USD 1.9 billion
2023 USD 2.4 billion
2033 USD 25.8 billion

Privacy Enhancing Technologies Market Trends

The proliferation of technologies that are data-driven, such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics, has created a growing awareness of privacy concerns. Data protection and privacy rights are increasingly important to individuals and organizations, which has resulted in the demand for technology that enhances privacy.

According to the California Consumer Privacy Act (CCPA), important data protection regulations have been implemented, such as the General Data Protection Regulation (GDPR) in the European Union and the General Data Protection Regulation (GDPR) in the United States. PET providers can tailor their solutions to meet these requirements and avoid hefty fines as a result of these regulations.

Several anonymization techniques are gaining traction as effective ways to protect individual privacy while allowing data aggregation and sharing. These techniques include differential privacy, homomorphic encryption, and secure multi-party computation. With organizations eager to collaborate and monetize data, these technologies are expected to grow in popularity.

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Sudip Saha

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Challenges Faced by Companies in the Privacy Enhancing Technology Market

The effectiveness of privacy-enhancing technologies in protecting personal information is one of their principal challenges.

  • PETs may not protect privacy equally, and some may have limitations, according to reports.
  • Affordability, lack of awareness, and industry standards may prevent PETs from being widely adopted.
  • The perception that PETs are complex or difficult to use may cause users to distrust them. PET adoption rates are likely to be low, resulting in a limited use of the technology.
  • A variety of hardware and software systems may present compatibility issues when PETs are applied. Their effectiveness can be limited by this, making them less useful in some cases.
  • The performance of some PETs can be limited due to speed issues and scalability issues.

Opportunities in the Privacy Enhancing Technology Market

Technology such as blockchains and decentralized identifiers (DIDs) offers opportunities for privacy-enhancing applications. By utilizing these technologies, users are able to control their data more securely and privately, manage their identities, and share data without having to depend on centralized authorities.

As privacy and data protection become increasingly important to the development of systems and technologies, privacy by design is becoming more recognized and more widely adopted. PET providers are able to provide privacy-centric solutions to organizations as privacy becomes an increasingly important feature of their offerings.

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Country-wise Insights

How will the United States’ Growth for Privacy Enhancing Technologies be Impacted?

United States Privacy Enhancing Technology Market Surges as Demand for Rapid Technological Advancement Grows

As per FMI’s analysis, the United States currently holds the leading share, accounting for 76.1% of the global market in 2023. Rapid technological advancements have enabled sophisticated privacy-enhancing solutions to be developed and deployed. Innovative approaches to data protection, such as differential privacy, homomorphic encrypting, and secure multi-party computation, enable data to be protected while allowing for analysis and utilization. In the United States, organizations are increasingly using these technologies to enhance privacy as they mature and become more accessible.

A variety of privacy laws have been enacted or updated by governments around the world, including those in the United States. These regulations include the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR) of the European Union. Organizations must comply with these laws in order to protect individual privacy rights. Several businesses are utilizing privacy-enhancing technologies in an effort to adhere to hefty regulations and avert hefty fines.

Public awareness of the importance of protecting personal information has increased in recent years because of a proliferation of data breaches and privacy violations. In 2017, Equifax's data breach exposed millions of Americans' personal information, one of numerous high-profile incidents. Therefore, privacy-enhancing technology is increasingly being adopted to mitigate these risks.

United Kingdom Privacy Enhancing Technology Industry Ensures Data Security through Government Support

United Kingdom has become one of the leading players in the privacy enhancing technology industry, with a market share of 20.3% in 2023. Business benefits can be gained from privacy-enhancing technology beyond regulatory compliance. Enhancing customer trust, reducing reputational risks, and fostering innovation are all possible benefits of implementing strong privacy measures. Organizations that adopt privacy-enhancing technologies can gain a competitive edge by demonstrating their commitment to user privacy.

The United Kingdom also has its own laws that affect data protection in addition to GDPR, such as the Data Protection Act 2018, which was passed in 2018. Individuals' privacy rights and personal data are protected by these laws. Businesses and organizations in the United Kingdom can avoid penalties for privacy violations and data breaches by adopting privacy-enhancing technology.

Personal data protection and privacy are becoming increasingly important to individuals in the United Kingdom. The need for robust privacy safeguards has been highlighted by high-profile data breaches and privacy scandals. Individuals can better manage their personal information by adopting privacy-enhancing technology.

Category-wise Insights

Which Component is Driving Demand for Privacy Enhancing Technology?

Software Privacy Enhancing Technologies are Growing at a Rapid Rate

The software market is expected to hold a CAGR of 26.4% for the privacy-enhancing technology market by 2033. Data are encrypted using cryptographic algorithms to create an unreadable format. The use of encryption in communication and data security has become increasingly common.

Personal information (PII) can be removed or altered in anonymization techniques, making it difficult or impossible to match data with individuals. Anonymized data can still be analyzed or processed using methods such as data masking, generalization, and perturbation.

A VPN routes a user's traffic through an encrypted tunnel, establishing a secure and encrypted connection between their devices and the internet. Internet Service Providers (ISPs) and other entities cannot eavesdrop on VPN traffic because IP addresses are hidden, data is encrypted, and eavesdropping is prevented.

Which Privacy Enhancing Technology Type is expected to Grow Demand in the Market?

Cryptographic Techniques Drive Demand for High-performance Privacy Enhancing Technology

Cryptographic techniques are expected to dominate the privacy enhancing technology market by 2023, with a CAGR of 26.1%. The most ancient kinds of PETs are cryptographic tools. Modern methods of encrypting data are created using homomorphic encryption. By encoding the data, operations can still be performed on the data without it having to be decrypted.

PET also uses SMPC, a form of cryptography that permits secure multi-party computations between two parties. A similar approach to P2P swarm system encryption involves multiple parties encrypting parts of a chunk of data. These factors are likely to grow demand for cryptographic techniques in privacy enhancing technology market.

Start-ups in the Privacy Enhancing Technology Market

Start-ups play a crucial role in identifying privacy enhancing technology growth opportunities. Uncertainty in the market contributes to the expansion of the industry as it is incorporated into strategy and transformed into action. The privacy enhancing technology market is largely driven by start-ups.

  • Lionhardt Technologies provides the organization with tools for masked data, privacy, and anonymization.Anonymizer, File Shredder, Secure Password Generator, and Data Generator are among Lionytics' products, along with Lionytics .NET library, CipherPAD, and Image Anonymizer. Protects personal information (PII) stored on online services and applications using privacy enhancing technologies (PET). In this regard, Lionytics continuously monitors users' and businesses' online presences for potential threats.
  • PrivacyChoice offered online security tools and services to individuals and businesses. One of their products, Privacyfix, offered privacy settings management for social media, Google, LinkedIn, and Facebook. Data and tools were also provided for online publishers and third-parties developing applications on data protection. An online privacy-policy generator, browser extensions, and tools for evaluating privacy policies are available. In 2013, AVG acquired the company.
  • Data privacy solutions are provided by Syntho through the cloud. With PET, anonymous synthetic data is generated using AI-based privacy-enhancing technology, preserving original data value. As part of its GDPR-compliant testing capabilities, it can develop data environments, share third-party data, retain data, reduce storage risks, manage governance, perform agile analytics, augment data, balance datasets, and manage data assets. It has provided services to a number of clients, including Tech Grounds, AWS, Red Je Pakketje, Amsterdam UMC, NL AI Coalitie, and Worksuite.

Competitive Landscape

Privacy enhancing technology mergers and acquisitions are likely to complement the growth aspirations of the industry. Leading manufacturers are also investing significantly in research and development activities in order to improve the efficiency, durability, and adaptability of their products, which is expected to contribute to the growth of the market. Additionally, multiple technology-based companies globally are supplying long-term fuel, which is supporting market growth.

Key Players in the Market

  • IBM
  • Microsoft
  • Oracle
  • SAP
  • SAS Institute
  • Thales eSecurity
  • CipherTrust
  • Socure
  • TrustArc
  • Veracod

How can Privacy Enhancing Technology Manufacturers Expand in the Market?

Strategies for Privacy Enhancing Technology Manufacturers to Expand in the Market:

  • Enhancing privacy and attracting customers by developing more efficient and cost-effective technologies
  • Assuring that specific customer needs are met through customized solutions
  • Expanding reach and distribution through strategic partnerships with industry players
  • Enhancing brand visibility and awareness through marketing and branding
  • Collaborations and partnerships with international companies to explore untapped markets and expand global presence

Recent Developments in the Privacy Enhancing Technology Industry:

  • In June 2023, the National Health Service (NHS) will create a service to use privacy enhancing technologies (PETs). The initiative has been announced in a market notice seeking suppliers to support it, with a budget of up to £35 million for a seven-year contract.
  • In June 2023, IQVIATM introduced the IQVIA RIM Smart Labeling, which provides an intelligent approach to global label management to make it more efficient and compliant for the life sciences sector. A streamlined process will enable life sciences companies to streamline the planning, tracking, and execution of regulatory labels.

Market Segmentation

By Component:

  • Software
  • Service

By Type:

  • Cryptographic Technique
  • Anonymization Technique
  • Pseudonymization Techniques

By Application:

  • Compliance Management
  • Risk Management
  • Reporting & Analytics
  • Others

By End User:

  • BFSI
  • Healthcare
  • IT and Telecommunication
  • Government
  • Retail
  • Manufacturing
  • Others

By Region:

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

Frequently Asked Questions

What is the Projected CAGR of the Privacy Enhancing Technology Market by 2033?

The projected CAGR of the privacy enhancing technology market by 2033 is 26.6%.

What is the Projected Privacy Enhancing Technology Market value by 2033?

The projected market value by 2033 is US$ 25.8 billion.

What is the Current Privacy Enhancing Technology Market Valuation?

The market is estimated to secure a valuation of US$ 2.4 billion in 2023.

Which Industry is the Key Consumer of the Privacy Enhancing Technology Market?

The financial services industry is the key consumer of the privacy enhancing technology market.

Who are the Three Key Players in the Privacy Enhancing Technology Market?

Enigma, Nym Technologies, and Protocol Labs are the three key players in the market.

Table of Content
	1. Executive Summary
	2. Market Overview
	3. Market Background
	4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
	5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component
		5.1. Software
		5.2. Services
	6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type
		6.1. Cryptographic techniques
		6.2. Anonymization techniques
		6.3. Pseudonymization techniques
	7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
		7.1. Compliance management
		7.2. Risk management
		7.3. Reporting & analytics
		7.4. Others
	8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-user
		8.1. BFSI
		8.2. Healthcare
		8.3. IT and telecommunication
		8.4. Government
		8.5. Retail
		8.6. Manufacturing
		8.7. Others
	9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
		9.1. North America
		9.2. Latin America
		9.3. Western Europe
		9.4. Eastern Europe
		9.5. South Asia and Pacific
		9.6. East Asia
		9.7. Middle East and Africa
	10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	17. Key Countries Market Analysis
	18. Market Structure Analysis
	19. Competition Analysis
		19.1. IBM
		19.2. Microsoft
		19.3. Oracle
		19.4. SAP
		19.5. SAS Institute
		19.6. Thales eSecurity
		19.7. CipherTrust
		19.8. Socure
		19.9. TrustArc
		19.10. Veracode
	20. Assumptions & Acronyms Used
	21. Research Methodology
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