Privacy Enhancing Technologies Market: Current Analysis and Forecast (2024-2032)

Privacy Enhancing Technologies Market Size & Forecast

The Privacy Enhancing Technologies Market was valued at approximately USD 2.45 billion in 2023 and is expected to grow at a substantial CAGR of around 25% during the forecast period (2024-2032), owing to the rising adoption of homomorphic encryption & secure computation.

Privacy Enhancing Technologies Market Analysis

The PETs market is defined as the solution market aimed at preserving the privacy of data and, at the same time, facilitating their processing, sharing, and analysis. Some of these technologies are encryption, computing, and anonymization applied in various organizations such as the finance sector, health sector, and artificial intelligence sector. PETs enable these organizations to meet their data privacy requirements such as those stipulated by the GDPR and the CCPA, as well as to achieve the goal of data utility. The market is primarily influenced by the rising cyber threats, strict rules and regulations, and growing emphasis on privacy-preserving data analytics.

To enhance the usage of PETs, companies implement homomorphic encryption for secure cloud computing, federated learning for private AI model training, and secure enclaves for confidential data processing in organizations. Industry giants such as IBM, Microsoft, and Google introduce privacy preservation in the analytical process and confidential computing to improve security while allowing data utilization. The use of privacy-centric advertisements or ad-awareness and the progression of identification solutions based on distributed ledger also fuels PET acceptance. Due to the constant changes, the regulatory enforcement of data privacy has made firms integrate PETs into cybersecurity models as a strategy to stand out for compliance.

For instance, on June 27, 2024, the U.S. National Science Foundation published a new investment to advance privacy-enhancing technologies (PETs) and promote their use to solve real-world problems. The Privacy-Preserving Data Sharing in Practice (PDaSP) program, which aligns with a tasking in the recent "Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence" (AI EO), will enhance the ability to privately share and analyze data for a range of use cases and applications, including those of significant interest to federal agencies.

Privacy Enhancing Technologies Market Trends

This section discusses the key market trends influencing the various segments of the privacy-enhancing technologies market as identified by our research experts.

Mainstream Adoption of Fully Homomorphic Encryption (FHE) Transforms Privacy-Enhancing Technologies Industry

The deployment of Fully Homomorphic Encryption (FHE) is becoming more widespread as companies continue to look for an effective way of performing computationally intensive tasks without disclosing the inputs to it. FHE enables the processing of encrypted data without the need for decryption, which allows security in cloud computing and AI, as well as anonymity in financial dealings. Big industries and brands such as IBM, Microsoft, and Google have embraced FHE as a way through which data security and confidential computing can be improved.

On January 17, 2025, Niobium developed co-processors that provide hardware-based acceleration for fully homomorphic encryption (FHE), enabling data to remain encrypted even while in use.

For instance, on October 13, 2022, Vaultree announced the release of its Data-in-Use Encryption for Google’s AlloyDB. As a launch partner with Google’s AlloyDB, the offering pairs the world's first fully functional Encryption-in-use solution, powered by Vaultree, with Google’s AlloyDB for PostgreSQL. Users will now be able to trial run Vaultree’s fully homomorphic and searchable encryption technology in the cloud, representing a breakthrough in encryption standards to enable next-generation encryption and data protection.

Privacy Enhancing Technologies Industry Segmentation

This section provides an analysis of the key trends in each segment of the global Privacy Enhancing Technologies market report, along with forecasts at the global, regional, and country levels for 2024-2032

The Cryptographic Technology Market Dominates the Privacy Enhancing Technologies Market

Based on typology, the market is segmented into cryptographic technologies, obfuscation technologies, statistical technologies, systems-based and accountability technologies, and miscellaneous technologies. Cryptographic technologies held a significant share of the market in 2023. The PET market expands due to being supported by cryptographic technologies for computation, encryption, and zero-knowledge proofs of privacy. To conduct computations on encrypted data while preserving the privacy of the said data, there is homomorphic encryption while securing MPC. Blockchain adoption is growing exponentially in the blockchain, healthcare, and finance industries because of the importance of confidentiality in regulation. On October 13, 2022, Vaultree announced the release of its Data-in-Use Encryption for Google’s AlloyDB. As a launch partner with Google’s AlloyDB, the offering pairs the world's first fully functional Encryption-in-use solution, powered by Vaultree, with Google’s AlloyDB for PostgreSQL. Users will now be able to trial run Vaultree’s fully homomorphic and searchable encryption technology in the cloud, representing a breakthrough in encryption standards to enable next-generation encryption and data protection.

The Reporting & Analytics Segment Dominates the Privacy Enhancing Technologies Market

Based on the application, the market is segmented into compliance management, risk management, reporting & analytics, and others. Reporting & analytics are expected to grow with a significant CAGR during the forecast period (2024-2032). PETs mainly help in reporting as well as analyzing the encrypted data since the sensitive data is protected from unauthorized individuals. The increasing application of AI in analytics and big data requires the use of PET to address legal requirements when using valuable data. To maintain the privacy of customers, organizations use differential privacy and federated learning for analyzing customers’ behavior. It is implemented in various sectors, such as the retail and health sectors, because such analysis processes must be performed privately.

North America leads the market.

North America remains the largest revenue-generating geographic market [for PETs] because of legislation such as the CCPA in California and increasing levels of cybersecurity threats. The driving forces are high-growth investments in artificial intelligence and cloud computing, particularly in the financial services industry, where privacy-preserving solutions are a requirement. Some of the emerging technology areas where the requirement for homomorphic encryption, federated learning, and secure computation has increased are BFSI and healthcare. Currently, organizations in the area are adopting PETs into cybersecurity and data management structures to abide by the guidelines.

On February 7, 2022, IAB Tech Lab, the digital advertising technical standard-setting body, announced the newly formed Privacy Enhancing Technologies (PETs) Working Group. This new workstream invites developers working on advanced cryptography, data scientists, privacy and security systems engineers, and others in the digital advertising community to come together to develop privacy-enhancing standards and software tools for the digital advertising industry.

The U.S. Dominates the North American Privacy Enhancing Technologies Market

The U.S. Privacy Enhancing Technologies (PETs) market is expanding quickly because of tough data privacy laws and intensifying cybersecurity hazards, in addition to growing utilization of AI and secure data-sharing solutions. The California Consumer Privacy Act motivates industries, including technology and finance, and healthcare, to buy homomorphic encryption and secure computation, and confidential computing services for data security. Businesses eager to participate in the expanding privacy-first economy accelerate the market demand for PETs which establishes the United States as a leading playground for privacy-focused solution development and funding.

Privacy Enhancing Technologies Industry Overview

The Privacy Enhancing Technologies market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are IBM, Microsoft, Google, SAP, Cisco Systems, Inc., Sedicii Innovations Ltd., Enveil, Unacast, Silence Laboratories, and DECENTRIQ.

Recent Developments in the Privacy Enhancing Technologies Market

• On October 15, 2024, the Okinawa Institute of Science and Technology (OIST) and Danish software company Partisia signed a Memorandum of Understanding to advance research in Multi-Party Computation (MPC) and develop innovative Privacy-Enhancing Technology solutions. This collaboration aims to deliver a global perspective on secure computation, quantum-safe cryptography, and cybersecurity by leveraging the combined knowledge and expertise of both parties.
• In July 2023, the Infocomm Media Development Authority of Singapore (IMDA) partnered with Google to launch privacy-enhancing technologies (PET) x Privacy Sandbox to support businesses that wish to pilot PET projects. PETs allow businesses to extract value from data and ensure the protection of personal data and other commercially sensitive information.

• In July 2022, Duality Technologies, the leader in privacy-preserving data collaboration, announced the launch of their highly advanced open-source fully homomorphic encryption (FHE) library in cooperation with a who’s who in cryptography. Intel, Samsung, the University of California - San Diego, and MIT join Duality in bringing to market this significant milestone in FHE.

  Privacy Enhancing Technologies Market Report Coverage

Reasons to Buy the Privacy Enhancing Technologies Market Report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at a glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional-level analysis of the industry.

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