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October 27, 2021

Confidential Computing Market Could Reach US$54 Billion in 2026

SAN FRANCISCO, October 27, 2021 – The Linux Foundation, the nonprofit organization enabling mass innovation through open source, along with the Confidential Computing Consortium today released findings from a market study by Everest Group which shows the Confidential Computing market is projected to grow at a CAGR of 90%-95% to reach US$ 54 billion in 2026.

Confidential computing protects data in use by performing computation in a hardware-based Trusted Execution Environment (TEE). These secure and isolated environments prevent unauthorized access or modification of applications and data while it is in use in memory, thereby increasing the security level of organizations that manage sensitive and regulated data, such as Personally Identifiable Information (PII), health information or financial data.

Some of the key findings of the market study titled “Confidential Computing – The Next Frontier in Data Security” are:

  • The Confidential Computing market is expected to grow at a CAGR of 90%-95% in the best case scenario, and 40%-45% even in the worst case scenario until 2026
  • Hardware and software segments of the market will drive the majority of adoption, while the service segment will also have a role to play
  • Regulated industries like banking, finance, insurance, healthcare, life sciences, public sector and defense will dominate the rollout
  • Adoption in different theaters will be driven by privacy regulations and incidences of cyber-threats
  • Emerging technology paradigms like multi-party computing and blockchain will constitute a large share of the market

“Enterprises are rapidly moving data to the cloud which has dramatically altered their security needs to protect their sensitive data at rest, on the network, or in use in secure protected computation,” said Stephen Walli, governing board chair of the Confidential Computing Consortium. “The needs of protecting and managing sensitive data throughout the life cycle, coupled with industry regulations, and the proliferation of cyber risks, positions Confidential Computing to become a de facto technology for computational security.”

The Everest Group leveraged multiple sources of data including proprietary datasets, consultations with key market stakeholders, and contributions from the members of the Confidential Computing Consortium to assess the market.

“While the adoption of Confidential Computing is in the relatively nascent stage, our research reveals growth potential not only for enterprises consuming it, but also for the technology and service providers enabling it,” said Abhishek Mundra, practice director, Everest Research.

Download the market study: https://next-frontier-in-data-security.confidentialcomputing.io.

Download our whitepapers on Confidential Computing: https://confidentialcomputing.io/white-papers.

Quotes from Executives of the Confidential Computing Consortium

Anjuna Security: Ayal Yogecv Cofounder and CEO

“This research validates Anjuna’s own experience that confidential computing is poised for dramatic growth as the way to keep data secure by default. As a pioneer in the development of confidential clouds, Anjuna sees the adoption of this technology as a key factor in allowing enterprises to migrate even their most sensitive workloads to the cloud simply and securely.”

Cysec: Massimo Lucchina, VP Corporate Business Development/Strategic Alliances

“Today’s report from Everest Group indicates clearly that the industry for trusted solution is exiting the early adopters phase to transition into operational trials and initial deployments. The market growth of x10 for the next 3 years is a clear indication of the trend.

This quantitative and qualitative analysis validates that industry-wide collaborative effort from Confidential Computing Consortium is the right approach to accelerate acceptance and use cases. At Cysec, we are very pleased that a Swiss-made security and trust solution is welcomed by industry peers and partners.”

Fortanix: Ambuj Kumar, CEO and Co-Founder

“The power of rich data for research, collaboration and advancements of solutions in security sensitive industries has been at odds with the essential need for data privacy. The potential for Confidential Computing to bridge that divide is reflected in the tremendous adoption rates projected for this technology.”

Profian: Mike Bursell, CEO

“We believe that open source will be key to addressing this growing market, and the Confidential Computing Consortium, a Linux Foundation project, is playing a crucial role fostering collaboration and innovation in this space.”

Q&A with David Greene, Head of the CCC’s Outreach Committee and Chief Revenue Officer of Fortanix

What are the drivers that position Confidential Computing for such aggressive growth at this time?
Customers want to leverage all of their data, even their most sensitive data, for their own use and to collaborate with other businesses. This is data that can bring advancements in critical research and the development of new solutions for health, productivity and improving people’s lives. Confidential Computing provides new and better ways to use even with the most sensitive data in highly regulated industries.

Is anyone using confidential computing today?
Yes, definitely. The strongest demand seems to be coming from banking, financial services, and healthcare that have both huge quantities of very confidential information and a real need to safely use that data. Organizations in any industry can benefit from keeping their data secure whether it is at rest, in motion or in use.

Can Confidential Computing really live up to the hype?
We certainly think so. Over 50 of the world’s technology leaders are working together to see if Confidential Computing can have a real impact on both businesses and people. This includes some of the biggest names in industry like Accenture, ANT Group, ARM, Facebook, Google, Huawei, Intel, Microsoft, Red Hat.

Would Confidential Computing have prevented some of the high-profile data breaches in recent times?
In some cases, yes. We continue to see data breaches resulting from gaps in infrastructure security. It’s very hard to protect infrastructure – there are just too many points of vulnerability. Confidential Computing takes a different approach by focusing on protecting the data, even when it is in use. This just is not possible using any other technology.

What was the role of the Confidential Computing Consortium in this study?
In the early part of this year member companies had a growing sense that confidential computing was going from theoretical discussions to practical applications – one more consequence of post-pandemic security.  The Consortium went looking for an industry analyst who had data to see if this was actually true and decided to partner with Everest. The key to selecting Everest was their broad and deep knowledge base well beyond the Consortium, from which they have been able to build this research.

About Confidential Computing Consortium

The Confidential Computing Consortium brings together vendors, cloud providers and developers to accelerate the adoption of TEE technologies and standards.  Premier members of the consortium include Accenture, ANT Group, Arm, Facebook, Google, Huawei, Intel, Microsoft and Red Hat.  Additional information about the CCC and a full list of member companies is available at: https://confidentialcomputing.io.

Source: Confidential Computing Consortium

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