According to the new research report titled “Homomorphic Encryption Market Forecast to 2027 –COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 246.29 millionby 2027, registering a CAGR of 9.7%from 2020 to 2027.
Homomorphic encryption solutions save financial and personally identifiable information data. The main feature of this technology is that it offers security to the data by keeping it encrypted at the time of processing and manipulation. In the era of digitalization, data plays a significant role; it not only requires analytics tools but also requires security tools. The homomorphic encryption is one of the privacy-enhancing technologies. The key factor attributed to the growth of the global homomorphic encryption market is growing data security concerns in all the data-sensitive organizations across the world. The homomorphic encryption market is anticipated to witness a noteworthy growth owing to a large number of financial& data processing firms choosing various solutions to secure the data transit or storing in cloud platform. Also, with rising adoption of cloud platform in businesses models, there is an increase in demand for fully homomorphic encryption to secure cloud data.
Other factors propelling the homomorphic encryption market include rise in number of cyberattacks and data breaches. For instance, cyberattacks by the WannaCry ransomware impacted numerous financial institutions, banks, and hospitals in 2017. Over 200,000 computers worldwide were hacked. Several such cyberattacks have raised concerns regarding data security of persons and firms. Furthermore, the demand for security solutions in SMEs has increased significantly. However, factors, such as slow processing and non-practical applications in a wide range of industries, are anticipated to hinder the growth of the homomorphic encryption market to a certain extent.
Key Findings of Study:
The global homomorphic encryption market is fragmented into five major regions—North America, Asia Pacific(APAC), Europe, the Middle East &Africa (MEA), and South America (SAM). Geographically, North Americaheld the largest share of the homomorphic encryption market in 2019, followed by Europe and Asia Pacific. Further, Asia Pacific is projected to witness the highest growth rate during the forecast period.
Nevertheless,significant strategic initiativesby several industry players are observed in the market;for instance, in 2020, Netskope Inc. raised US$340 million in Series G funding round.The investment was led by Sequoia Capital. Moreover, in 2019, Thalas Group acquired Gemalto for US $ 5.38 billion.