Confidential Computing Market

Global Confidential Computing Market Size (2024 to 2029)

The global confidential computing market size was valued at USD 9.19 billion in 2024 and is expected to reach USD 57.90 billion by 2029, growing with a CAGR of 44.5% during the forecast period.

Confidential Computing is the technique where the most sensitive data of the organization is stored in the computer processor unit. Confidential computing technology mainly focuses on securing sensitive data from unauthorized access. Organizations with sensitive datasets, such as banks, governments, industries, and healthcare, need confidential Computing to secure the data. Various hardware, software, and cloud providers support the confidential computing technique, which is increasing. Confidential Computing prompts the cloud environment, allowing the data owners to access the data from remote areas. Confidential Computing is prominent in maintaining data security and privacy in various scenarios, which enables the sensitive data of an organization by following the regulations and enhancing the benefits of cloud computing without compromising data security. The increase in demand for cloud databases and platforms influenced the adoption of confidential Computing to avoid data breaches and access to sensitive data without authorization.

MARKET DRIVERS

Requirement in meeting the regulatory standards

Organizations need to meet the regulatory standards to protect the sensitive data. Data privacy laws such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) require businesses to safeguard sensitive data. Confidential Computing offers a secure and private processing unit, which helps comply with the organization's data with these regulations. The compulsory implementation of security for organizations by regulatory standards boosted the confidential computing market growth. GDPR requires that personal data be secured and stored appropriately to prevent access from unauthorized sites. Various regulatory acts in different organizations need to protect the data from breaches. According to the Health Insurance Portability and Accountability Act (HIPAA), healthcare organizations must secure patient information data. Confidential Computing works with the HIPAA regulatory standards and secures the data. Cloud security regulations such as the Federal Risk and Authorization Management Program (FedRAMP) and the Cloud Security Alliance (CSA) require cloud service providers to protect customer data by introducing security controls. 

Necessity of secured cloud computing

Organizations need the security tools and technology to safeguard their sensitive data. Various government sectors require security and privacy to maintain government confidentiality. Traditional cloud computing models depend on the cloud service vendor and the infrastructure, which is needed to secure the sensitive data. Confidential Computing provides the organization's security regarding sensitive data and allows the data operators to access them from different environments without data breaches. These factors are enhancing the confidential computing market demand. Confidential Computing uses tools such as trusted execution environments (TEE) or secure enclaves to build a private, safe environment inside the cloud infrastructure. Secure enclaves protect sensitive data, including the cloud service provider.

MARKET RESTRAINTS

The major restraining factor hampering the confidential computing market growth was the complexity of implementing confidential Computing as it requires highly skilled- persons with vast knowledge of cryptography, secure enclaves, and trusted execution environments. Many small industries with limited IT services will be inaccessible to this technology as it is new and constantly evolving. Confidential Computing often integrates with the existing IT infrastructure, which is challenging. Another restraining factor for the market expansion was the increase in costs of hardware and software, which hindered cloud computing adoption and affected the confidential computing market. The implementation and integration are challenging the growth limit of the market.

Impact of COVID-19 on the Global Confidential Computing Market

The Pandemic had a positive impact on the Confidential Computing Market size as the spread of COVID-19 has increased the digital revolution in many sectors, such as healthcare, finance, and government, to secure their sensitive data. Organizations using remote environments need technology to protect users' privacy and security. By its capacity to safeguard data processing and storage, confidential Computing was the emerging approach regarding security issues. Working in different environments may lead to data breaches and hacking of sensitive data; security tools are necessary to prevent sensitive data.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Confidential Computing Market Analysis By Component

The services segment dominated the Confidential Computing market trend in 2022 with a share of 54% in the global market revenue. These provide support by helping the organizations to adopt and leverage confidential computing technology. The confidential computing service helps organizations to understand the benefits, risks, and implications of adopting confidential Computing. Services guide on selecting the right technologies and designing the secured architectures by following the regulatory standards according to the organization. 

The software segment was projected to have a dominant share during the forecast period owing to a safe and secure environment where delicate data and computations can be carried out without being exposed to outside dangers. The hardware segment was also expected to witness decent growth by improving the security and privacy of the data.

Global Confidential Computing Market Analysis By Deployment mode

The cloud-based segment dominated the confidential computing market in 2022, as confidential Computing works prominently with the cloud computing databases. On-premise databases mainly depend on the traditional methods of keeping trust in the service provider and the vendor. Confidential Computing was better implemented in the cloud systems, which give better results combined. 

Global Confidential Computing Market Analysis By Application

The Secure Enclaves gained the dominant share in the Confidential Computing market revenue in 2022. It creates the tool TEE, which is trustworthy within a processor using a hardware mechanism. It provides a safe and secure environment where sensitive data is collected with high security and integrity. A secure enclave provides a barrier between the enclave and the rest of the system to avoid the usage of the same hardware within the operating system. Data Security was also gaining traction as the data should be stored in a secured environment. So, it was expected to have a prominent growth rate in the upcoming years. 

Global Confidential Computing Market Analysis By Vertical

The retail and E-commerce sector held the dominant share of the global market revenue in 2022 and is expected to dominate during the forecast period. The domination was due to the increasing confidentiality in the retail and e-commerce segment, which involves the market strategies of the businesses to survive in the market competition, which leads to enhancement of the introduction of the confidential computing technology. Massive data regarding customers are held by this segment, which should be protected as it consists of personal data and payment details. Confidential Computing protects the data from data breaching, identity theft, and fraud. The payment process was secured by confidential Computing in the retail sector, allowing safe transactions in a trusted environment by maintaining the confidentiality of the credit cards and authentication data of the customer. 

REGIONAL ANALYSIS

North America dominated the market with the largest revenue share in 2022 due to its excellent IT infrastructure and the presence of many organizations with advanced technology. The adoption of confidential Computing was high in this region. Regulatory requirements, such as FedRAMP, were a standard approach to security assessment, authorization, and continuous monitoring of the cloud services that influence the confidential computing market. Many industries in the U.S are adopting confidential Computing to secure sensitive data. The leading adopters are the finance, healthcare, government, and IT. Major key players are in the U.S and Canada, making this region dominate market growth.

Europe and Asia-Pacific are projected to have significant growth rates in the upcoming years due to the rapid development of IT and technology in these regions. The surge in the development of AI, IoT, ML, and connected devices will drive market growth in the forecast period.

KEY PLAYERS IN THE GLOBAL CONFIDENTIAL COMPUTING MARKET

• Amazon Web Services Inc.,

• Fortanix

• Intel Corporation

• Alibaba Cloud

• Microsoft Corporation

• IBM Corporation

• Google LLC

• Cyxtera Technologies Inc.

• Advanced Micro Devices Inc.

• Ovh SAS, and others.

RECENT HAPPENINGS IN THE GLOBAL CONFIDENTIAL COMPUTING MARKET

• In May 2023, Intel launched a new security-as-a-service solution called Project Amber, which is an independent trust authority designed to verify the computing asset in the cloud and on-premise environment is trustworthy.

• In April 2023, Microsoft announced the expansion of its confidential VM family with the launch of DCesv5-series and ECesv5-series in preview. These VMs are backed with a new hardware-based Trusted Execution Environment called Intel Trust Domain Extensions (TDX).

• In April 2023, Microsoft announced to align with Kata Confidential Containers to achieve zero trust operator deployments with AKS. The goal of the Kata Confidential Containers project is to standardize confidential Computing at the container level and simplify Kubernetes.

• In January 2022, Fortanix Inc., the first multi-cloud company security company, launched AWS Nitro Enclaves and uplifted its position as a leading player in the fast-growing Confidential Computing Space.

DETAILED SEGMENTATION OF THE GLOBAL CONFIDENTIAL COMPUTING MARKET INCLUDED IN THIS REPORT

This research report on the global confidential computing market has been segmented and sub-segmented based on the component, deployment mode, application, vertical, and region. 

By Component

• Hardware

• Software

• Services

By Deployment mode

• On-Premise

• Cloud-based

By Application

• Data Security

• Secure Enclaves

• Pellucidity Between Users

• Others

By Vertical

• BFSI

• Healthcare 

• Manufacturing

• IT & Telecom

• Retail and E-Commerce

• Government and Public sector

• Others

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East and Africa