Privacy Enhancing Technologies Market: Current Analysis and Forecast (2024-2032)
Emphasis on Component (Software, Services); Typology (Cryptographic Technologies, Obfuscation Technologies, Statistical Technologies, Systems-Based and Accountability Technologies, Miscellaneous Technologies); Application (Compliance Management, Risk Management, Reporting & Analytics, Others); End User (BFSI, Healthcare, IT and Telecommunication, Government, Retail, Others); and Region/Country
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 analytical process and confidential computing to improve security while allowing data utilization. The use of privacy-centric advertisements or ad-awareness and 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 the 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 running 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.
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 cyber security and data management structures to abide to 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.
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.
Privacy Enhancing Technologies Market News
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 cyber security 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
Report Attribute | Details |
Base year | 2023 |
Forecast period | 2024-2032 |
Growth momentum | Accelerate at a CAGR of 25% |
Market size 2023 | USD 2.45 Billion |
Regional analysis | North America, Europe, Asia-Pacific, Rest of the World |
Major contributing region | Asia-Pacific is expected to grow at the highest CAGR during the forecasted period. |
Key countries covered | U.S., Canada, Germany, France, UK, Spain, Italy, China, Japan, and India |
Companies profiled | IBM, Microsoft, Google, SAP, Cisco Systems, Inc., Sedicii Innovations Ltd., Enveil, Unacast, Silence Laboratories, and DECENTRIQ |
Report Scope | Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Demand and Supply Side Analysis; Competitive Landscape; Company Profiling |
Segments Covered | By Component, By Typology, By Application, By End User, By Region/Country |
Reasons to buy this 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 one 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.
Customization Options:
The global privacy enhancing technologies market can be customized further as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Privacy Enhancing Technologies Market Analysis (2022-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global Privacy Enhancing Technologies market were the three major steps undertaken to create and analyze the adoption of Privacy Enhancing Technologies in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Privacy Enhancing Technologies market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the Privacy Enhancing Technologies market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the Privacy Enhancing Technologies market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as component, typology, application, end user, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Privacy Enhancing Technologies market. Further, we conducted factor analysis using dependent and independent variables such as component, Typology, Application, End user, and regions of the Privacy Enhancing Technologies market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Privacy Enhancing Technologies market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Privacy Enhancing Technologies market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
The industry’s market size, in terms of revenue (USD) and the adoption rate of the Privacy Enhancing Technologies market across the major markets domestically
All percentage shares, splits, and breakdowns of market segments and sub-segments
Key players in the global Privacy Enhancing Technologies market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Privacy Enhancing Technologies market. Data was split into several segments and sub-segments after studying various parameters and trends in the component, typology, application, end user, and regions of the global Privacy Enhancing Technologies market.
The main objective of the Global Privacy Enhancing Technologies Market Study
The current & future market trends of the global Privacy Enhancing Technologies market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Analyze the current and forecast market size of the Privacy Enhancing Technologies market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
Segments in the study include areas of component, typology, application, and end user, and regions.
Define and analyze the regulatory framework for the Privacy Enhancing Technologies
Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
Analyze the current and forecast market size of the Privacy Enhancing Technologies market for the major region.
Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
Company profiles of the Privacy Enhancing Technologies market and the growth strategies adopted by the market players to sustain the fast-growing market.
Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the Privacy Enhancing Technologies market's current size and growth potential?
The Privacy Enhancing Technologies market was valued at USD 2.45 Billion in 2023 and is expected to grow at a CAGR of 25% during the forecast period (2024-2032).
Q2: What are the driving factors for the growth of the Privacy Enhancing Technologies market?
The rising data privacy regulations, growing cybersecurity threats, expansion of AI & machine learning, increasing demand for secure data sharing, growth in cloud computing & edge computing, adoption of homomorphic encryption & secure computation, surging investment in fintech & healthcare drive the privacy enhancing technologies market.
Q3: Which segment has the largest share of the Privacy Enhancing Technologies market by typology?
Cryptographic Technologies has the largest share of the Privacy Enhancing Technologies market by typology.
Q4: What are the major trends in the Privacy Enhancing Technologies market?
The Mainstream Adoption of Fully Homomorphic Encryption (FHE) is the major trend in the Privacy Enhancing Technologies market.
Q5: Which region will dominate the Privacy Enhancing Technologies market?
North America dominated the market in 2023.
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