Market Overview:

The Homomorphic Encryption Market is estimated to reach a valuation of USD 173.5 Million by 2022 and projected to USD 265.85 Million in 2030, growing at 7.45% CAGR during the assessment period 2022 to 2030.
Homomorphic encryption is a secure method of encryption that can generate an encrypted output by performing computations on a ciphertext. This allows you to control your data without sacrificing specifics in exchange for authorized access. Homomorphic encryption is extensively employed to safeguard valuable data. Encrypting data transforms it into a form or code that only those with the password can decipher.

The industry is expected to grow as the number of cybercrimes goes up. Cybercrimes like ransomware attacks, online identity theft, hacking, and phishing have become much more common in many markets around the world. This has caused huge financial losses and halted businesses. Organizations are worried about the security of their information because hacking is on the rise. With more companies using cloud-based data processing services, homomorphic encryption is becoming an important way to protect businesses from the growing number of cyber threats. Cyberattacks are on the rise because traditional infrastructure is being replaced quickly by the web, artificial intelligence and other cutting-edge technologies are being used more and more, and people are becoming more connected.

Market Dynamics:

Drivers: Increasing desire for technology that uses secure data transmission

Homomorphic encryption increases privacy and makes sure that data is sent securely. It is a type of encryption that lets you use ciphertext to do math and get an answer that is encrypted. For data protection to work, data needs to be encrypted. For example, think about how it is used in the banking industry. Let's say a bank customer has the total value of his or her account protected with a private key, and the only way to get the information back is to use the password. The voting system can also use this kind of safety for data. Because of this, homomorphic encryption is widely used in many fields to send data securely.

In the banking business, for instance, a user can store encrypted data in the cloud. The cloud can do calculations and send the encrypted result back to the user. The user can then use different ways to decrypt this cyphertext and hide this information from the host. Using cloud computing has a lot of benefits, such as low cost, easy upkeep, and the ability to re-provision resources. Also, businesses like banking and finance, healthcare, manufacturing, and others are spending a lot of money to keep their cloud data safe. So, the homomorphic market at level is getting a boost from the growing investments in cloud-based industries and the highly secure information transfer structure. The market for homographic encryption will grow faster than expected because of the above reasons. (2022-2030).

Increasing adoption of mobility solutions

The market for homomorphic encryption is being driven by the increasing use of cellphones and other mobile devices, as mobile cloud computing can be defined as an infrastructure where both data storage and data processing take place outside the device. Mobile cloud applications move data storage and processing capacity from mobile devices to the cloud. People use smartphones in their everyday lives for a variety of purposes, including bill payment, shopping, and mobile banking, thanks to digital transmission. People share their personal information with third parties as a result, which prompts questions about how private people's information is. Through a third-party community, internet users exchange a lot of information. As a result, the security of data is now a key element driving the market for homomorphic encryption.

Challenges: Lack of skilled cybersecurity workers could slow the growth of the business

The lack of qualified fraud analyzers and other cybersecurity experts may put a stop to the market's development for homomorphic encryption. According to the ISACA's 8th Annual Cybersecurity Survey, there will be 60% of unfilled cybersecurity jobs in India in 2022. Furthermore, 62% said it takes them 3 to 6 months to find qualified candidates for a job. These restrictions might prevent the industry from expanding.

Impact of COVID-19 Pandemic on Homomorphic Encryption Market: 

The COVID-19 epidemic is changing how companies work all over the world. Companies and the government must work from the culture that drives digitalization in the global market to stop the spread of the coronavirus. In spite of the epidemic, the global business data ecosystem has been strong. Businesses, hospitals, and other government services began to use digital systems with built-in security. Still, services in the financial business are using new encryption technologies to make sure that e-services for customers are safe. At the beginning of the pandemic, financial constraints slowed the growth of digitalization projects. However, after the lockdown, the projects' importance has grown at a large rate. The quality of data exchanges has grown a lot, which has increased the demand for encryption services.

Type Insights:

Somewhat homomorphic encryption lets users do processes like multiplication and addition a limited number of times, with a limit on the level of complexity. This ability to handle different kinds of mathematical or analytical processes will help the homomorphic encryption market grow from the somewhat homomorphic segment, which is expected to grow at a rate of over 7% through 2030.

Application Insights:

The market is growing because more people are using mobile solutions and smartphones. Mobile cloud computing is a system where both computing and storage of data happen outside of the device. At the moment, people in all areas use their phones for banking, shopping, and paying bills. This is because digitization has spread to all areas. So, they share their personal information with a third-party forum, which makes people worry about their safety. People all over the world who use the Internet more and more are sharing huge amounts of information through a third party. So, data security is an important factor that is helping the homomorphic encryption market grow faster. Homomorphic encryption helps find a good mix between risk and usefulness when it comes to sharing data in industries like BFSI, healthcare, and government.

Regional Insights:

The global homomorphic encryption market has been looked at in different parts of the world, like North America, Europe, Asia-Pacific, Latin America, the Middle East, and India. In the near future, this market will be dominated by the global area.

North America is still the market leader as of 2018, and it may stay that way for the rest of the evaluation term. The market is growing because of things like the rise of small and medium-sized businesses and the growing use of homomorphic encryption technology. The size of the homomorphic encryption market is also affected by the steady growth of the medical field and the rise of high-tech medical facilities.

The market for homomorphic encryption in Europe is the second biggest in the world. The homomorphic encryption market is growing because of things like the growing banking and finance business and the growing use of HE technology. A large number of PE technology providers and a lot of money spent on healthcare in the area also help the market grow. Also, the market for homomorphic encryption is growing, and more money is being put into it by the private sector.

The market for homomorphic encryption technology is growing in Asia and the Pacific. The rise of regional markets is being affected by the growing need for homomorphic encryption in cloud security. Also, the fast industrialization provides a lot of opportunities for the local homomorphic encryption industry because HE solutions are used a lot. Most of the homomorphic encryption market share in the region comes from places like India, Australia, China, and Japan.
Scope of report:

Key vendors:

• Microsoft (U.S.), 
• IBM Corporation (U.S.), 
• Galois Inc (U.S.), 
• CryptoExperts (France), 
• Enveil Inc (U.S.), 
• Oracle (US)
• Intel (US)
• Google LLC (US)
• Cosmian Tech (France)
• Duality Technologies Inc. (US)
• Inpher, Inc. (US)
• Netskope, Inc. (US)
• Thales Group (France)
• Zaiku Group Ltd. (UK)

• IBM Corporation (U.S.)

International Business Machines Corporation (IBM) also known as Big Blue is an American global technology company with its headquarters in Armonk, New York, and operations in more than 175 countries. It focuses on hardware, middleware, and software for computers. It also offers hosting and advising services in areas as diverse as mainframe computers and nanotechnology. IBM is the biggest industrial research organization in the world. It has 19 research facilities in 12 different countries. From 1993 to 2021, IBM held the record for the most U.S. patents created by a business each year.

• Google LLC (US)

Galois Inc. makes sure that important systems can be trusted. Through cutting-edge study and expert engineering, we are in the business of turning blue sky ideas into real-world technology solutions. Galois works with the government and the business world to create technologies that have a big effect on privacy, security, and safety in society.

• CryptoExperts (France)

CryptoExperts SAS is a company that was started by researchers in IT security and cryptography who are known all over the world. The company started up in February 2009, and its goal is to close the huge gap between the scientific state of the art and the level of technology in security goods today. We help the security industry use the latest advances in cryptography to improve their goods and services. We do this through both consulting services and business-driven innovation. We have brought together and continue to bring together cryptography experts whose skills and knowledge of the field complement each other. This allows us to give a unique set of services, from product development to coming up with new security systems. CryptoExperts works with and has partnerships with some of the best technology companies in the world.

• Enveil Inc (U.S.)

Enveil was one of the first companies to use Privacy Enhancing Technology to protect Data in Use. Enveil's business-enabling and privacy-protecting features change how and where businesses can use data to unlock value. Enveil's award-winning ZeroReveal solutions for safe data usage, collaboration, and monetization protect data while it is being used or processed. These solutions are part of a new category called Privacy Enhancing Technologies (PETs), which is a big deal. Customers can get insights, cross-match, search, and analyze data assets at scale without ever revealing the content of the search, putting the security or ownership of the underlying data at risk, or showing their interests and intentions. Enveil is a World Economic Forum Technology Pioneer that was started by former members of the U.S. Intelligence Community. It is already up and running and is changing how data is used in the global market.

• Inpher, Inc. (US)

Inpher was the first company to use secret Secret Computing technology to make machine learning and analytics safe and private.  As data-driven companies and AI that is everywhere uses more information, it becomes harder to get to useful data sources because of more privacy, security, and compliance rules from organizations and countries. With Inpher's Secret Computing tools, data scientists can work on distributed data in a compliant, secure, and private way without ever exposing or moving it. With Secret Computing, data scientists can unlock private data to improve their machine learning and analytical models and meet organizational and sovereign data requirements.

Industry Development:

• In December 2020, IBM Security released a new service that lets businesses try out fully homomorphic encryption (FHE), a new technology that encrypts data while it is being handled or analyzed in the cloud or by a third party.
• In February 2020, Enveil, a leading US data security company, revealed that it had raised $10 million for enterprise-scale homomorphic encryption. Due to privacy and features that support privacy, companies are also looking for ways to make it safe to share and collaborate on data, or to make money off of data in a safe way.

Market Segmentation:

By Type               

• Partially Homomorphism
• Fully Homomorphism

By Application 

• Government
• Finance and Insurance
• Health Care
• Industry

Regional Insights:

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Conclusion:

The market for homomorphic encryption is very active, and it is projected to grow steadily over the next few years. The market for homomorphic encryption is growing because there is more demand for secure data transmission, more investment in cloud-based businesses, and more e-government projects around the world. Also, the use of homomorphic encryption in the banking and finance sector is likely to increase demand during the time of the forecast. But the homomorphic encryption market isn't growing as fast as it could because the systems are hard to understand and they aren't being updated.

North America is still the market leader as of 2018, and it may stay that way for the rest of the evaluation term. The market is growing because of things like the rise of small and medium-sized businesses and the growing use of homomorphic encryption technology. The size of the homomorphic encryption market is also affected by the steady growth of the medical field and the rise of high-tech medical facilities.