Confidential Computing Global Market Report 2024

The confidential computing market size has grown exponentially in recent years. It will grow from $6.45 billion in 2023 to $8.82 billion in 2024 at a compound annual growth rate (CAGR) of 36.7%. The expansion observed in the historical period can be attributed to data breaches, the need for regulatory compliance, the increasing adoption of cloud technologies, healthcare data sharing initiatives, and growing privacy concerns.

The confidential computing market size is expected to see exponential growth in the next few years. It will grow to $30.89 billion in 2028 at a compound annual growth rate (CAGR) of 36.8%. The anticipated growth in the forecast period is driven by increasing data privacy regulations, the proliferation of edge computing, a focus on data sovereignty and jurisdictional regulations, and the escalating cybersecurity threats. Major trends expected in this period include the adoption of hybrid and multi-cloud solutions, efforts towards standardization and interoperability, the integration of artificial intelligence and machine learning (AI/ML), enhanced data governance and compliance measures, and the adoption of blockchain and distributed ledger technologies.

The escalating prevalence of cyber intrusion activities is poised to propel the growth of the confidential computing market in the foreseeable future. Cyber intrusion activities encompass unauthorized actions or breaches perpetrated by individuals, groups, or entities to gain illicit access to computer systems, networks, or data. With the proliferation of connectivity, increasingly sophisticated attack techniques, and a notable lack of cybersecurity awareness and preparedness, instances of cyber intrusion are on the rise. Confidential computing emerges as a vital strategy in combating cyber intrusion by fortifying cybersecurity measures, safeguarding sensitive data against unauthorized access and tampering, and bolstering the overall security posture of computing environments. For example, according to the Australian Cyber Security Centre report in November 2022, cybercrime reports surged to 76,000, marking a 13% increase from the previous year. Consequently, the mounting incidents of cyber intrusion activities are driving the confidential computing market forward.

Key players in the confidential computing market are prioritizing the development of advanced technological solutions, particularly focusing on data protection to address the growing demand for data privacy and security. A data protection platform serves as a comprehensive solution engineered to secure sensitive data by centralizing policy, audit, logging, and monitoring functionalities. For instance, in December 2022, Opaque Systems, a US-based company specializing in confidential computing, unveiled the first multi-party confidential AI and analytics platform. This groundbreaking platform facilitates secure access, sharing, and analytics on confidential data, empowering organizations to adhere to legal and regulatory mandates effectively. By addressing data privacy, security, and compliance challenges, this advancement in confidential computing technology enables organizations to harness the potential of AI and analytics on encrypted data within trusted execution environments (TEEs), thereby fostering innovation while ensuring robust data protection measures.

In October 2022, Fatbrain LLC, a distinguished US-based enterprise AI software company, successfully acquired the confidential computing and privacy intellectual property (IP) along with software assets of Zero2AI PTE LTD Platform for an undisclosed amount. This strategic acquisition is geared towards safeguarding data privacy, fostering innovation for a multitude of expanding businesses. It enables FatBrain to leverage the specialized expertise of Zero2AI in confidential computing, ultimately empowering small and medium enterprises (SMEs) with robust data privacy guarantees. Zero2AI PTE Ltd., headquartered in Singapore, is recognized for its development of applications that harness open-source AI models.

Major companies operating in the confidential computing market are Google LLC, Microsoft Corporation, Alibaba Group Holding Limited, Huawei Technologies Co. Ltd, Amazon Web Services Inc, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Telefónica Group, Advanced Micro Devices Inc, Capgemini SE, Thales Group, Vmware Inc., Swisscom AG, Wipro Limited, Arm Holdings, OVH Groupe SA, Cyxtera Technologies, HUB Security Ltd., Applied Blockchain Ltd., PhoenixNAP, Fortanix Inc., Anjuna Security Inc., dq technologies AG, Opaque Systems Inc, R3 Inc., Cysec SA.

North America was the largest region in the confidential computing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the confidential computing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the confidential computing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Confidential computing encompasses technologies and practices aimed at safeguarding sensitive data and processes within computing environments, ensuring their confidentiality and security, particularly during processing or analysis by cloud or other computing services.

The primary components of confidential computing include hardware, software, and services. Hardware components constitute physical elements within computer systems designed for specific functions. They encompass various deployments such as on-premises and cloud setups, serving diverse applications such as data security, secure enclaves, and user transparency. These components find applications across various industry verticals including banking, financial services and insurance (BFSI), government and defense, healthcare, information technology (IT) and telecommunications, retail, manufacturing, and others.

The confidential computing market research report is one of a series of new reports that provides confidential computing market statistics, including confidential computing industry global market size, regional shares, competitors with a confidential computing market share, detailed confidential computing market segments, market trends and opportunities, and any further data you may need to thrive in the confidential computing industry. This confidential computing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The confidential computing market consists of revenues earned by entities by providing services such as managed services, secure enclave provisioning, encrypted data processing, key management, security audits and consulting, compliance and regulatory support, and integration and customization services. The market value includes the value of related goods sold by the service provider or included within the service offering. The confidential computing market also includes sales of hardware firewalls, intrusion detection and prevention systems (IDPS), secure enclave processors, hardware security modules, trusted platform modules, and secure storage devices. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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